Organigram Holdings Inc., the parent company of Organigram Inc., has acquired all of the issued and outstanding shares of The Edibles & Infusions Corporation (EIC) for consideration of $22 million, plus up to an additional $13 million in shares payable upon the EIC business achieving certain earnout milestones.
The EIC acquisition will broaden Organigram’s continuum of product offerings, as well as provide an operational footprint in Western Canada.
EIC was co-founded by AgraFlora Organics International Inc. and James Fletcher, who is the CEO of Cavalier Candies – one of Canada’s oldest confectionery companies.
EIC constructed a highly-automated, 51,000-sq.-ft. manufacturing facility in Winnipeg, Manitoba. The facility uses state-of-the-art equipment to produce customizable, precise and scalable cannabis-infused products, including edibles. EIC currently holds a Research License and a Standard Processing License issued under the Cannabis Act and regulations. IT is in the process of completing its application to add the activity of sale of Cannabis 2.0 products to its Standard Processing License.
Until EIC receives its Sales License, it is capable of manufacturing products in bulk for further processing, review and sale by Organigram or third-party licensed producers, for which it may provide white-label services.
Organigram currently expects first sales of EIC-manufactured soft chews in the fourth quarter of Fiscal 2021, subject to the timing of receipt and commissioning of certain ancillary equipment, completion of quality assurance documentation and hiring of requisite staff.
“EIC is an important acquisition to ensure Organigram is consistently at the forefront of cannabis product development,” said Organigram CEO Greg Engel. “The integration of EIC will continue to provide our consumers access to innovative cannabis products while leveraging Organigram’s national sales and distribution network. 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.
“EIC’s commitment to research and development, continuous innovation and its confectionery market leadership strategically align with Organigram’s domestic and international strategy. We value James Fletcher’s tremendous knowledge of confectionery manufacturing and proven track record of fulfilling the product needs of some of the world’s largest retailers at Cavalier Candies.”