Organigram Holdings Inc. (NASDAQ:OGI) shares are trading higher Monday after the company announced a C$124.6 million investment from British American Tobacco PLC (NYSE:BTI).
The Details:
Organigram Holdings announced that the company and BAT will deepen their partnership through a C$124.6 million investment with 38.7 million OGI shares to be issued over three tranches.
CA$83.1 million of the investment will be used by Organigram to create a strategic investment pool, “Jupiter”, designed to expand Organigram’s geographic footprint and capitalize on emerging growth opportunities. The remaining CA$41.5 million of the investment will be used for general corporate purposes.
Shares of OGI are up on heavy trading volume following the announcement. According to data from Benzinga Pro, more than 32 million shares have already been traded in the session, compared to the stock’s 100-day average of less than 450 thousand shares.
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OGI Price Action: According to Benzinga Pro, shares are up 28% at $1.49 at the time of publication.
Image: Rex Medlen from Pixabay
