Significantly bumping up hemp acquisition from last year’s numbers, Organigram Holdings Inc. (NASDAQ Global Select: OGI; TSX-V: OGI) is betting big on CBD by signing a deal to acquire up to 60,000 kg of hemp by the end of 2019.
The terms of the deal see Organigram offering up an advance payment acquiring the rights to buy dried hemp flower from New Brunswick-based 703454 N.B. Inc. (more commonly known as 1812 Hemp).
A portion of that advanced payment will be used by 1812 Hemp to purchase new harvesting and processing equipment for maximizing upcoming harvest yields to meet higher production quotas. A previously struck deal also bestows a right of first refusal to Organigram for future harvests from 1812 Hemp that continues to be in effect.
The company already produces a variety of Edison-branded CBD oil products through hemp acquired from 1812 as well as a separate agreement with Valens GroWorks.
Discussing the bulk quantity of organic material to be harvested through this newly struck 1812 Hemp deal, Organigram’s Chief Executive Officer Greg Engel commented:
A preference for CBD is quickly eclipsing THC products in North America, with the US in particular seeing major retail deals and a sudden influx of tinctures, vapes, patches, and edibles practically overnight.
Increasing efforts towards hemp and cannabis legalization in Europe have also seen a variety of North American companies looking toward European investments in CBD and wellness companies.
In other recent Organigram news, the company is gearing up for new vaporizer regulations to arrive in Canada by announcing separate partnerships with both PAX Labs and Feather Company Ltd. Organigram will provide vape pens and cartridges through those supply deals starting in October.
Those vape cartridges will include Edison-branded oils in both high THC and CBD variants to entice customers looking for different experiences without having to use dried flower products such as loose leaf or pre-rolled joints.
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