Canadian cannabis producer Organigram Holdings Inc. (NASDAQ: OGI) has taken steps to enter the U.S. market.
The firm invested $2 million in Open Book Extracts, a wholesaler based in North Carolina that specializes in hemp-derived products.
The investment is structured as a convertible note within a larger funding round that includes other investors, the company said.
Open Book Extracts operates in the legal hemp-derived cannabinoid market, providing services from ingredient production to product manufacturing. Organigram said its investment represents its first strategic entry into the U.S. market, where it is looking to capitalize on growing demand for hemp-derived products.
“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,” Organigram’s chief strategy officer, Paolo De Luca, said in a statement.
“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.”
The partnership between Organigram and OBX is expected to facilitate mutual growth, with Organigram gaining insights into the U.S. market and exploring potential product launches.
The investment also opens doors for future collaboration in research and product development.
“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,” OBX co-founder and CEO David Neundorfer said.
Oscar Hackett, president and CFO of OBX, echoed the sentiment: “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.”
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