While Canopy Growth (TSX: WEED) may have lost the interest of its major investor Constellation Brands (NYSE: STZ), Organigram Holdings (TSX: OGI) has managed to strengthen ties and receive further investment from its major investor.

Organigram this morning revealed a deal for a $124.6 million strategic investment from BAT (NYSE: BTI), which is a follow-on deal to an investment made in 2021, when the company took a 19.9% in the cannabis operator.

The investment will see a total of 38.7 million shares issued over three tranches at $3.2203 per share, with BAT increasing its common share ownership to 30.0% under the transaction, while its overall interest will jump to 45.0%.

The first tranche, worth $41.5 million, is expected to close around January 16, 2024. The remaining portion of the investment meanwhile is expected to occur in two equal tranches around August 30, 2024 and February 28, 2025. Any shares that will push the company over 30.0% ownership in common shares will be issued in the form of non-voting Class A convertible preferred shares. BAT meanwhile will be able to appoint up to 30% of the firms board.

In terms of use of proceeds, $83.1 million is slated to create Jupiter, which will be a strategic investment pool that is designed to expand the firms global footprint, and to “capitalize on emerging growth opportunities.” The remainder will be used for general corporate purposes.

Organigram last traded at $1.59 on the TSX.

Information for this briefing was found via Sedar and Organigram Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.