Organigram Enters U.S. Through Acquisition of Collective Project Beverages
Acquisition Marks Commercial Market Entry in the Fast-Growing Hemp-Derived THC Beverage Category in the

“The acquisition of Collective Project marks yet another strategic milestone towards Organigram’s global leadership ambitions. Not only does this acquisition represent our first commercial entry into the fast-growing hemp-derived THC beverage market in the
Collective Project is an innovative brand launched by Collective Arts, a
“We are pleased to be working with Organigram on this transaction as not only Canada’s leading cannabis company but also one that is deeply committed to high-quality products backed by R&D and science-backed innovation,” said Matt Johnston, Collective Project co-founder. “The Collective Project brand is under good stewardship, and we expect it to flourish as
Strategic Rationale
“In an environment where consumers are shifting away from alcohol, brands that deliver on an enjoyable experience without the negative effects of alcohol will be poised to win in this alternative beverage category that is growing at a rapid rate in the U.S.,” said Paolo De Luca, Chief Strategy Officer at Organigram. “We believe that Collective Project’s portfolio of cannabis and hemp-derived THC beverages are differentiated, among the best-tasting products in the market today, and are sure to please consumers looking for a satisfying beverage alternative in both the
The following points highlight the strategic rationale for the acquisition:
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Organigram immediately gains a footprint in the
U.S. The hemp-derived THC beverage market is currently experiencing significant growth as companies expand their beverages into mass retail. ManyU.S. alcohol chains such as Specs, Total Wines and Top Ten Liquors have already embraced the hemp-derived THC beverage category and there is speculation that major convenience and big box retail are considering pilot testing the products. Collective Project is already listed at Top Ten Liquors inMinnesota and Total Wines inNorth Carolina ,South Carolina andIndiana .
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Fast tracks Organigram’s entry into the beverages category. In
Canada , cannabis beverages are believed to have above-average growth opportunities if there are changes to the currently restrictive cannabis dispensary distribution channel. Organigram believes that, among all adult-use cannabis categories inCanada , beverages are most likely to become eligible in the future for on-premise consumption and expanded distribution beyond the current retail-only framework. In theU.S. , hemp-derived THC beverages are widely available in traditional retail venues in certain states. This segment is experiencing rapid growth and, according to Euromonitor, is already generating over in retail sales, with projections reaching$1 billion by 20281.$4 billion
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Leverages the strength of the Collective Arts brand in the
U.S. Collective Project will continue to benefit from the consumer awareness and brand loyalty of Collective Arts, a beloved and top three craft beer brand inCanada , and top three craft import brand in theU.S. Collective Arts is currently active inFlorida, New York ,Minnesota ,Pennsylvania ,Virginia andPuerto Rico . Also, Collective Project will benefit from deep artist community roots in the U.S. market.
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Organigram will have the opportunity to leverage the relationships and infrastructure that Collective Arts has built in the
U.S. to fast-track the launch of our own portfolio of hemp derived THC beverages.
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Organigram can start consolidating
U.S. revenue. Unlike state-regulated cannabis at the federal level, hemp is regulated under the 2018 Farm Bill and is federally legal. Some states, likeMinnesota andFlorida , have embraced hemp-derived THC products for beverages and edibles, creating near market opportunities. Organigram believes that enough states are currently active in hemp-derived THC beverages to allow it to establish a material U.S. market position over time.
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Highly complementary product portfolio. Fills the last major category gap in the Organigram portfolio where Organigram will immediately capture
5.6% of the beverage category inCanada with strong upside potential due to portfolio and distribution expansion and the opportunity for Organigram to bring its proprietary FAST™ nano emulsion technology to beverage products.
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Ability to leverage Canadian sales team and sales agent to deliver distribution gains across
Canada . Opportunity for geographic expansion beyondOntario and CPL’s current provincial footprint, as well as to significantly improve distribution within existing markets by securing listings with major retailers that do not yet carry the brand.
Product Availability
Collective Project products are available in both
Collective Project Product Portfolio:
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Blood Orange Vanilla Yuzu (
Canada andU.S. ) -
Raspberry Vanilla (
Canada and soon in theU.S. ) -
Mango Coconut Pineapple (
Canada andU.S. ) -
Cherry Vanilla (
Canada ) -
White Peach Cardamom (
Canada ) -
Mango Peach Yuzu (
Canada ) -
Blueberry Elderberry White Tea (
Canada )
In addition to Collective Project, CPL has recently launched “Fetch” in
Fetch Product Line:
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Classic Cola Zero (Available in
Canada ) -
Cream Soda (Available in
Canada ) -
Lemon-Lime Zero (Available in
Canada ) -
Classic Cola (Available soon in
Canada ) -
Cream Soda Zero (Available soon in
Canada ) -
Lemon-Lime (Available soon in
Canada )
In the
Transaction Details
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Organigram has acquired all the issued and outstanding shares of CPL, on a debt free basis, for
C cash of which$6.2 million C is attributable to the beverage business (“Original Consideration”) and$6.0 million C attributable to all other cannabis categories that CPL is engaged in (vapes and edibles).$0.2 million - Milestone and earnout payments thereafter (collectively “Contingent Consideration”), if applicable, are subject to performance in the beverage category only.
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Milestone payments of
C each in cash are payable if CPL achieves “cumulative depleted wholesale sales2” of at least US$2.0 million from inception to June 30, 2025 (“Milestone 1”) and “cumulative depleted wholesale sales2” of at least US$500,000 from inception to September 30, 2025 (“Milestone 2”) in each case from its$1 million U.S. hemp-derived beverage business. -
The first eligible earnout payment (“First Earnout”), if applicable, shall be paid by calendar 2025 year-end, based on 2.5 times trailing twelve months net revenue to September 30, 2025, less any consideration paid to date including the Original Consideration, Milestone 1 (if applicable) and Milestone 2 (if applicable). The First Earnout, if applicable, is expected to be paid
50% in cash and50% in Organigram share consideration priced at the five-day TSX VWAP the day prior to settlement. -
The second eligible earnout payment (“Second Earnout”), if applicable, shall be paid by calendar 2026 year-end, based on 2.5 times trailing twelve months net revenue to September 30, 2026, less any consideration paid to date including the Original Consideration, Milestone 1 (if applicable), Milestone 2 (if applicable) and the First Earnout (if applicable). The Second Earnout, if applicable, is expected to be paid
50% in cash and50% in Organigram share consideration priced at the five-day TSX VWAP the day prior to settlement. -
Contingent Consideration for the beverage business in all cases shall be capped at
C .$24 million -
While the Original Consideration of
C will not be taken from the Jupiter strategic investment pool as CPL is currently substantially a Canadian business, some of the future milestone or earn-out payments, if any, may be eligible for drawdowns from the Jupiter strategic investment pool.$6.2 million
Websites and Social Media:
To learn more, please visit:
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Canadian and
U.S. websites: www.collectiveproject.ca or www.collectiveproject.com respectively. - Instagram account: https://www.instagram.com/collectiveprojectusa/
About Organigram
Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include Organigram Inc., a licensed cultivator of cannabis and manufacturer of cannabis-derived goods in
Organigram is focused on producing high-quality cannabis for adult recreational consumers, as well as developing international business partnerships to extend the Company's global footprint. Organigram has also developed and acquired a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Tremblant Cannabis, Trailblazer, BOXHOT and DEBUNK. Organigram operates facilities in
Forward-Looking Information
This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or state that certain actions, events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information include performance of the business post-closing, market factors, regulatory changes, consumer demand and preferences and factors and risks disclosed in the Company’s most recent annual information form, management’s discussion and analysis and other Company documents filed from time to time on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Examples of forward-looking statements in this news release include, among others, (i) the structure and terms of the transaction, including potential milestone and earnout payments; (ii) the growth opportunities for cannabis beverages in
1 https://www.euromonitor.com/article/fizz-with-a-buzz-the-rise-of-cannabis-drinks-in-the-us
2 Cumulative depleted wholesale sales refers to the total value of product sold through from distributors to retailers, measured from the inception of such sales to the applicable milestone date.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250331607315/en/
For Media enquiries:
Megan McCrae, Senior Vice President – Global Brands and Corporate Affairs megan.mccrae@organigram.ca
Max Schwartz – Director of Investor Relations max.schwartz@organigram.ca
Source: Organigram Holdings Inc.