Organigram Holdings has acquired The Edibles & Infusions Corp. (EIC) in a CAD35 million ($27.88 million) stock deal, reports Reuters.
EIC specializes in pot edibles, like gummy bears, brownies and drinks, and have been the biggest beneficiaries of increased demand for cannabis products during coronavirus lockdowns.
“Edible products remain an important product category to Organigram, and EIC represents an ideal partner with which to expand our market presence in this category as well as other derivative cannabis categories,” Organigram Chief Executive Greg Engel said.
In March, British American Tobacco announced it would buy a nearly 20 percent stake in Organigram for about £126 million ($174.30 million) as it looks to diversify beyond its main tobacco business.
Organigram said it currently expects first sales of EIC-manufactured soft chews in the fourth quarter of fiscal 2021.
The Toronto Stock Exchange has approved the EIC deal, according to Organigram.