Organigram to Acquire Berlin-Based Sanity Group

TORONTO — Organigram Global Inc. has entered into a definitive agreement to
acquire all the issued and outstanding shares of Sanity Group GmbH not
already owned by Organigram. The deal is valued at €113.4 (€80 million in
cash; €33.4 million in Organigram shares) on closing, with an additional
earnout of up to €113.8 million in cash and stock based on Sanity’s
performance during the twelve months following closing.

Berlin-based Sanity Group, founded in 2018, is a prominent European
cannabis company. The group’s primary operations are centered in Germany,
where the medical cannabis market serves about 800,000 patients and was
valued at more than €2 billion in 2025. The market is forecast to surpass
€4.5 billion by 2028, with the patient population expected to reach around
1.8 million (~2.0% of the population).

Sanity Group Highlights

- Year-over-year net revenue growth, from €9 million in calendar 2023 to
€19 million in 2024 to €60 million in 2025, including €19 million generated
in the last quarter of calendar 2025.
- Gross margin improvement, from 15% in 2023 to 35% in 2024 and 47% in
2025.
- Strategically expanding European footprint beyond Germany and
Switzerland including Poland, the UK, and Czechia.
- Currently operates two locations in the Swiss pilot program.

British American Tobacco plc (BAT), through its wholly owned subsidiary BT
DE Investments Inc., is a shareholder in both Organigram and Sanity and has
opted to take Organigram share consideration in lieu of cash for its
interest in Sanity. BAT is expected to subscribe for 14,027,074 Organigram
shares at a price of C$3 per share, for gross proceeds of C$42.08 million,
the proceeds of which will be used to fund the acquisition.