08:36 AM EDT, 06/25/2024 (MT Newswires) -- Organigram Holdings ( OGI ) , a licensed producer of cannabis, said on Tuesday that it will to buy a minority stake in Berlin-based cannabis company Sanity Group GmbH for 14 million euros ($21 million).

The company will buy equity interests in the German cannabis company from Sanity Group founders and shareholders. The investment will comprise 11.5 million euros via an unsecured convertible note and 2.5 million euros.

Organigram ( OGI ) may advance another 3 million euros as a second tranche of the unsecured convertible note for future opportunities to be pursued by Sanity.

The company will use the proceeds from its Jupiter strategic investment pool for the investment.

The investment expands the previously announced supply agreement between Organigram ( OGI ) and Sanity Group. Until Organigram ( OGI ) receives EU-GMP certification at its Moncton production facility, Sanity Group has committed to buying significantly higher annual volumes of dried flower under the new agreement.