Organigram Acquires Motif, Establishing Itself as Canada’s Leading Cannabis Company by Market Share

Organigram Holdings Inc., a prominent Canadian licensed cannabis producer, has recently acquired Motif Labs Ltd. for a total upfront consideration of $90 million, comprised of $50 million in cash and $40 million in Organigram common shares. This strategic acquisition positions Organigram as the largest cannabis company in Canada by market share and enhances its status in the rapidly expanding vape and infused pre-roll markets. Additionally, Motif’s offerings include the popular BOXHOT brand and a strong portfolio of products that resonate with consumers, further solidifying Organigram’s brand appeal.

The merger brings significant operational synergies, estimated to exceed $10 million over approximately 24 months, and allows for enhanced logistics through a strategically located distribution hub in Southwestern Ontario. This hub will optimize supply chain efficiencies for Organigram’s growing portfolio, which is anchored by its own leading brand, SHRED. Furthermore, Motif contributed around $86 million in net revenue and $4.7 million in adjusted EBITDA over the last twelve months, underscoring the financial viability of the acquisition.

Beena Goldenberg, CEO of Organigram, emphasized that this acquisition not only establishes the company as Canada’s leading cannabis firm but also paves the way for future growth in international markets as cannabis regulations evolve worldwide. She highlighted the importance of innovation and product development in meeting the needs of today's consumers.

Motif, which was founded in 2017 and has quickly established itself as a major player in cannabis extracts, has a proven track record of launching innovative products and maintaining a significant market presence. The company's CEO, Mario Naric, expressed pride in Motif's accomplishments and excitement about merging with Organigram to create a comprehensive cannabis entity capable of leading in all major categories. The acquisition is set to capitalize on growing consumer demand and the evolving landscape of the cannabis industry.

Motif's strong brand portfolio, combined with Organigram's operational capabilities, is expected to foster a competitive edge in the market. As both companies work to integrate their operations, they anticipate that the resulting synergy will enhance their market positions and product offerings, facilitating further growth and customer loyalty.

In conclusion, this merger is seen as a landmark transaction within the cannabis industry, combining two strong entities to create a powerhouse that can navigate the complexities of the evolving market landscape while ensuring strong production efficiency and innovative product development. With a combined focus on consumer needs and robust operational infrastructure, Organigram and Motif aim to set a new standard for excellence in the Canadian cannabis marketplace and beyond.