Organigram Holdings Inc. (CVE: OGI) announced that the company has entered into a binding agreement with the company named Alpha-cannabis Pharma GmbH or Alpha-Cannabis Germany (AGC). Organigram has agreed to acquire 25% of AGC through a cash and stock deal.
Organigram will pay $1.625 million euros in cash and will pay $875,000 euros in Organigram common shares for the 25% ownership of AGC. The company will also export dried cannabis flower and sweet leaf for extraction performed by AGC. The cannabidiol (CBD) isolate product from the extraction processes will be available for Organigram to purchase.
Both companies anticipate submitting a joint application for licenses to supply medical cannabis to the German cannabis market in the near future.
OGI stock has increased 2.99% in value from today’s trading alone. In the last 5 days OGI stock has increased 10.62%.