Organigram Enters U.S. Market with Collective Project Acquisition
Deal News | Apr 02, 2025 | EIN
Organigram Global, a large marijuana producer in Canada, has acquired Collective Project, a THC beverage manufacturer based in Hamilton, Ontario. The purchase, valued at 6.2 million Canadian dollars with potential earnouts raising the price to approximately CA$30 million, marks Organigram's entry into the U.S. hemp-derived THC beverage market. Collective Project, founded by Collective Arts in 2013, specializes in infused juices, teas, and sodas. These products are currently sold in 37 U.S. states and several Canadian provinces. This strategic move supports Organigram's ambitions for global leadership and positions it for growth in the relatively untapped cannabis beverage market in Canada.
Sectors
- Cannabis Industry
- Beverage Industry
- Mergers and Acquisitions
Geography
- Canada – Both Organigram and Collective Project are based in Canada, which serves as the hub for the acquisition activity.
- United States – The acquisition enables Organigram's entry into the U.S. market where Collective Project's products are already available in multiple states.
Industry
- Cannabis Industry – The acquisition directly involves companies operating in the cannabis sector, focusing specifically on the marijuana and hemp-derived products segment.
- Beverage Industry – The transaction pertains to the beverage sector, particularly THC-infused drinks, indicating an expansion into the hemp-derived beverage market.
- Mergers and Acquisitions – The article discusses a significant acquisition deal within the cannabis industry.
Financials
- CA$6.2 million ($4.3 million) – The upfront payment Organigram made to acquire all issued and outstanding shares of Collective Project.
- CA$30 million – The potential total value of the acquisition, contingent upon success-based earnouts.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Organigram Global | Bidding Company | Company | One of Canada’s largest marijuana producers, entering the U.S. hemp-derived THC beverage market. |
| Collective Project | Target Company | Company | A THC beverage manufacturer based in Hamilton, Ontario, specializing in infused sparkling juices, teas, and sodas. |
| Collective Arts | Other | Company | The founding company of Collective Project, influencing its arts-oriented beverage designs. |