Organigram Holdings Inc. announced on December 6, 2024, the acquisition of 100% of Motif Labs Ltd. for an upfront consideration of $90 million. This payment consisted of $50 million in cash and $40 million in Organigram common shares, with the share price based on a 30-day trading VWAP of $2.3210 on the Toronto Stock Exchange.
The strategic acquisition is expected to establish Organigram as Canada's largest cannabis company by market share. It is also anticipated to significantly strengthen Organigram's presence in the vape and infused pre-roll segments of the Canadian recreational cannabis market.
Furthermore, the company expects this acquisition to generate substantial cost synergies, enhancing operational efficiency and contributing to its overall financial performance. Additional earn-out payments of up to $10 million are possible, contingent on Motif achieving certain financial milestones.
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