Organigram Global (NASDAQ: OGI) (TSX: OGI) told investors it acquired Collective Project Limited for approximately C$6.2 million ($4.3 million). Add in potential milestone payments and potential earnout payments, and the value of the deal could rise to C$24 million ($16.6 million) for the 12-month periods ending Sept. 30, 2025, and Sept. 30, 2026.
Organigram said that the deal immediately gives it entry into the fast-growing cannabis beverage category. The company noted that Collective’s products are already available in U.S. alcohol chains such as Total Wines and Top Ten Liquors.
Organigram also sees the acquisition as a springboard for its own line of beverages as well. While Collective Project has planted flags in the U.S., it was founded in Hamilton, Ontario, in 2013. The company also has its own line of craft drinks that are top sellers in Canada.
“The acquisition of Collective Project marks yet another strategic milestone towards Organigram’s global leadership ambitions. Not only does this acquisition represent our first commercial entry into the fast-growing hemp-derived THC beverage market in the U.S., it also fast tracks our entry into the cannabis beverage category in Canada, a category that we believe is on the cusp of growth at home as well,” Beena Goldenberg, CEO of Organigram, said.
Collective Project is known for its collaborations with the art community. It has featured more than 2,000 artists from 40 countries on its products.
“We are pleased to be working with Organigram on this transaction as not only Canada’s leading cannabis company but also one that is deeply committed to high-quality products backed by R&D and science-backed innovation,” said Matt Johnston, Collective Project co-founder.
Organigram said that by the end of the year, it expects that products will also be distributed in Connecticut, New Jersey, Illinois and Alabama. In Canada, the products are currently available in Ontario, British Columbia, Saskatchewan, Newfoundland and Nova Scotia, with distribution in additional provinces to follow in the coming months.
[[{“value”:”Organigram is paying C$6.2 million for U.S. based Collective Project to get a footprint in the country.
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