Organigram, a licensed producer of cannabis, announced the acquisition of 100% of the issued and outstanding shares of Motif Labs for upfront consideration of CA$90 million, consisting of CA$50 million in cash and CA$40 million of Organigram common shares.
In addition, Motif shareholders will be entitled to receive additional contingent consideration of CA$10 million payable in Organigram common shares.
“The highly complementary acquisition of Motif establishes Organigram as Canada’s largest cannabis company by market share and accelerates our vision to be a leading cannabis company across all major categories, driven by a relentless focus on the consumer of today and tomorrow,” said Beena Goldenberg, CEO of Organigram. “Winning in Canada, the world’s largest federally legal recreational market, supported by leading brands and best-in-class operations, innovation and product development, provides the platform to unlock global opportunities as evolving attitudes towards cannabis drive regulatory changes in new and exciting markets,” she added.
Motif is a Canadian leader in the vape and infused pre-roll categories backed by a portfolio of owned brands, including the BOXHOT brand. Motif's business also includes a wholesale division and end-to-end services for external brands. Motif has repeatedly proven to be able to design, develop and launch products at speed and scale, resulting in market growth with SKUs and brands that resonate with consumers. Motif is headquartered in Aylmer, Ontario, soon to be supported by a large distribution warehouse in nearby London, Ontario.
“Motif was founded in 2017 with a vision to leverage manufacturing expertise to succeed in the production of cannabis extracts. We are proud to say that today, not only is Motif one of Canada’s largest and most efficient extractors but we have also commercialized a portfolio of leading, widely distributed brands that have unlocked leading market share positions of #1 in vapes and #3 in infused pre-rolls,” said Mario Naric, CEO and Founder of Motif. “This is a landmark transaction in our industry and the Motif team is thrilled to be joining forces with Organigram to create Canada’s undisputed leader with deep capabilities in all major cannabis categories.”
“Organigram has a proven track record of executing on Canadian M&A, successfully capturing and growing market share with highly complementary acquisitions that add to our existing strengths. This acquisition of Motif is no exception,” said Paolo De Luca, Chief Strategy Officer at Organigram. “This deal is about a leading public cannabis company joining forces with Canada’s top private licensed producer. We are extremely excited about leveraging our combined competitive advantages and respective market positions to continue to grow in Canada and beyond.”
