10:40 AM EDT, 06/25/2024 (MT Newswires) -- Organigram Holdings ( OGI ) said Tuesday it will invest 14 million euros ($15 million) to acquire a minority stake in German cannabis company Sanity Group.

The investment will initially consist of 11.5 million euros, structured as an unsecured convertible note issued by Sanity Group to Organigram ( OGI ) as lender, and 2.5 million euros of already issued equity interests purchased from existing shareholders, the company said.

Organigram ( OGI ) said it has an option to invest a further 3 million euros, which would bring its total investment in Sanity Group to 17 million euros.

Meanwhile, the companies have signed a new supply deal to include "significantly higher" volumes and the intention to collaborate on the commercialization of Organigram's ( OGI ) brands and intellectual property in Germany, the company said.

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