Organigram announced a $2 million minority investment in Steady State, which does business as Open Book Extracts (OBX).
Based in Roxboro within North Carolina’s “Research Triangle,” OBX specializes in legal cannabinoid ingredient production and serves as a one-stop formulation and finished goods manufacturer.
“We are extremely excited to make our first Jupiter pool investment in Open Book Extracts, a company that we’ve had on our radar for quite some time,” said Paolo De Luca, Chief Strategy Officer of Organigram. “OBX has a scalable platform, differentiated products, and a great team, all of which support its tremendous access to the U.S. market and leadership in the fast-growing hemp derivatives category,” he concluded.
“Organigram has consistently proven itself to be one of Canada’s leading licensed cannabis producers and has growing international ambitions which is why we are so eager to have them as an investor in OBX,” said OBX co-founder and CEO David Neundorfer. “We are pleased to receive the investment from Organigram, who share our commitment to upholding the highest standards of product quality, and we look forward to helping the company launch hemp-derived products in the U.S. over time,” added Oscar Hackett, co-founder, President, and CFO.
Strategic Rationale of the Investment
- The investment in OBX provides a further footprint in the U.S, which was a strategic priority set out in the Jupiter investment strategy.
- OBX is a professional, quality-led company that is growing quickly and is uniquely positioned to leverage the expanding legal hemp derivatives market.
- Through its investment in OBX, Organigram will gain valuable insights into the U.S. market and its consumers. In time, Organigram plans to work with OBX to explore potential product launches in the U.S.
- OBX and Organigram are currently discussing an opportunity for OBX to serve as a collaborative research partner for efficacy testing, technology development, and formulation sciences.
- OBX is nearing completion of its EU GMP certification, which will create further international collaboration opportunities between OBX and Organigram.
