Organigram Global Inc. (NASDAQ:OGI) shares rose in Thursday's premarket session after the company confirmed a 65.2 million Canadian dollar private placement investment from British American Tobacco's (NYSE:BTI) subsidiary.
BAT Funding Strengthens Sanity Deal
The financing includes the subscription of 14,027,074 shares at 3.00 Canadian dollars per share (42.08 million Canadian dollars) and exercise top-up rights for 9,897,356 shares at 2.335854 Canadian dollars per share (23.12 million Canadian dollars), totaling 65.2 million Canadian dollars in gross proceeds.
The immediate impact of the announcement is increased financial clarity and reduced funding uncertainty surrounding Organigram's proposed acquisition of Sanity Group GmbH. The proceeds will support the cash portion of the 113.4 million euro upfront consideration, along with related transaction expenses and general working capital.
This follows Wednesday's disclosure that the company was in advanced negotiations for this same 65.2 million Canadian dollar investment.
The confirmed investment strengthens Organigram's balance sheet and signals continued backing from British American Tobacco, which is already a shareholder in both Organigram and Sanity. That alignment reinforces confidence in the strategic rationale of building a global pure-play cannabis platform with expanded exposure to key European markets.
Technical Analysis
The stock is currently trading 4.8% above its 20-day simple moving average (SMA) but 6.2% below its 100-day SMA, suggesting short-term strength while indicating longer-term challenges. Shares have increased 4.55% over the past 12 months and are currently closer to their 52-week lows than their highs, reflecting cautious market sentiment.
The RSI is at 41.29, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, the MACD is at -0.0919, below its signal line at -0.0735, indicating bearish pressure on the stock.
The combination of a neutral RSI and a bearish MACD suggests mixed momentum, suggesting traders should watch for potential shifts in market sentiment.
- Key Resistance: $2.00
- Key Support: $1.50
Earnings Outlook
Organigram Global is slated to provide its next financial update on May 11, 2026.
- EPS Estimate: Loss of 1 cent (Down from 22 cents)
- Revenue Estimate: $54.67 million (Up from $45.70 million)
- Valuation: P/E of 12.2x (Indicates value opportunity)
OGI Price Action: Organigram Global shares were up 8.70% at $1.50 during premarket trading on Thursday, according to Benzinga Pro data.
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