Organigram buys cannabis edibles manufacturer EIC for $17m

Canadian cannabis producer Organigram has acquired a white-label manufacturer of cannabis edibles including soft chews, Edibles & Infusions Corporation (EIC).

The deal includes all of the issued and outstanding shares of EIC for a consideration of CAD 22 million ($17.4 approx.), plus up to an additional CAD 13 million ($10.3 approx.) in shares payable upon performance.

With the acquisition, Organigram will broaden its product offering and gain an operational footprint in western Canada.

EIC manufactures a wide range of cannabis-infused products in various format and dosages – including pectin, gelatin, sugar-free soft chews (gummies), toffee and caramel – which it supplies to over 20,000 locations throughout North America.

The company operates a 51,000 square-foot manufacturing facility in Winnipeg, Manitoba, which will provide Organigram with additional R&D capabilities for future confectionery product development.

With around 100 years of active operations in production, EIC’s confectionery focus complements Organigrams’ cannabis infused chocolate production capabilities and expands its market presence in the growing edibles category.

“EIC is an important acquisition to ensure Organigram is consistently at the forefront of cannabis product development. The integration of EIC will continue to provide our consumers access to innovative cannabis products while leveraging Organigram’s national sales and distribution network,” said Greg Engel, CEO of Organigram.

EIC is currently in the process of completing its sales licence application; but until then, it is capable of manufacturing products in bulk for further processing, review and sale by Organigram or third-party licensed producers, for which it provides white-label services.

James Fletcher, president of EIC, said: “Working with Organigram, we believe EIC can realise its full potential. Combining our complementary management expertise and business strengths will result in an integrated entity that is poised for further growth in Canada as well as globally in an expanding market for cannabinoid-infused products.”