Alpha-Cannabis Germany (ACG)
In October 2018, Organigram signed an agreement to acquire common shares representing a 25% interest (fully diluted basis) in alpha-cannabis® Pharma GmbH (ACG), located in Stadthagen, Germany.
ACG is a privately-held company strategically positioned to serve German medical cannabis market - the largest European legalized market for medical cannabis in the world.
Organigram will provide ACG with dried cannabis flower as well as sweet leaf for conversion into extracts. The parties also anticipate entering into an agreement whereby the Company will have an option to purchase pure synthetic CBD isolate from Alpha-Cannabis Germany.
The Company expects the parties will jointly submit for future licenses available to supply medical cannabis in the German market.
In October 2018, Organigram along with an institutional strategic investor, invested 50 per cent in a $10-Million debenture with Eviana that included offtake agreement. Within this investment, Organigram has the right, but not the obligation, to purchase up to and including 25 per cent of Eviana’s annual CBD production for five years from when it is first made commercially available by Eviana at 95 per cent of the wholesale price.
Eviana was established with the aim of delivering customized consumer health care products using natural hemp strains of cannabis sativa. Eviana holds certain assets in Serbia relating to the cultivation of industrial hemp.