💸 The Tape

Organigram Holdings Inc. has pulled off a game-changing acquisition, snapping up Canadian cannabis heavyweight Motif Labs for a cool $90 million. The deal includes $50 million in cash and $40 million in Organigram shares, priced at $2.32 based on a 30-day VWAP. And there’s more—Motif shareholders could pocket an extra $10 million in shares if Organigram’s stock price tops $3.22 within the next year. Talk about aligning incentives!

Motif is no small fish. With a market-leading 21.2% share in vapes and a growing foothold in infused pre-rolls, this Ontario-based company brings serious clout to the table. Its BOXHOT brand has made waves, and its production capabilities—over a million vapes and 750,000 pre-rolls monthly—are nothing short of impressive. Add in expertise in advanced extraction techniques like CO2 and hydrocarbon, and you’ve got a high-octane addition to Organigram’s portfolio.

This acquisition positions Organigram as Canada’s largest cannabis company by market share, claiming a combined 12.4% slice of the pie. From pre-rolls to concentrates, the combined entity now dominates multiple categories. And with strategic facilities in Aylmer and London, Ontario, logistics optimization and economies of scale are in the cards, promising over $10 million in cost synergies within two years.

CEO Beena Goldenberg is all smiles, touting the move as a giant leap toward “category leadership” in Canada and beyond. Meanwhile, Motif founder Mario Naric sees this as a “landmark transaction” that brings together complementary strengths to create an industry juggernaut.

For Organigram, this isn’t just about acquiring market share; it’s about crafting a powerhouse capable of innovation at scale. With both teams deeply entrenched in consumer-driven strategies, expect to see an accelerated pipeline of groundbreaking products. As deals go, this one is a masterclass in strategic growth.

📈 Dog Walkers

Canada Is Flashing Positive Data Points 6 Years Into Legalization

Six years after Canada’s grand experiment with cannabis legalization, the numbers are in—and they’re looking pretty green. Health Canada’s 2024 Cannabis Survey reveals a dramatic shift to legal channels, with 72% of consumers now sourcing their marijuana above board, compared to just 37% in 2019. Meanwhile, the illicit market is shrinking faster than a bad high, with only 3% of users admitting to illegal purchases, down from 16% in the early days. Even more impressive? Daily or near-daily use remains steady, defying fears of runaway consumption. Youth usage is ticking down slightly, and first-timers are holding off longer, with the average initiation age rising to 20.7 years. Canada’s cannabis market isn’t just growing—it’s maturing, one joint at a time.

New York Social Equity Has Some Bright Spots….But Still A Ways To Go

New York’s Cannabis Workforce Initiative (CWI) is giving the Empire State’s cannabis industry a much-needed social equity boost, blending education with opportunity. This program, spearheaded by Cornell University’s Labor and Employment Law Program, has already churned out over 1,100 certifications through its Cannabis Career Exploration and Worker Rights Certificate. In just 15 hours, participants gain a crash course in cannabis jobs, licensing, and worker rights—a golden ticket for navigating this budding market. Employers are catching on, with the certificate becoming a coveted qualification. Notably, CWI’s commitment to diversity shines, with 60% of graduates identifying as people of color. While the industry faces leadership concerns, CWI proves social equity in cannabis isn’t just a pipe dream—it’s a growing reality.

🗞️ The News

Organigram Acquires Motif, Becoming Canada’s Largest Cannabis Company by Market Share

Inside the UK's 'secret' £10m medicinal cannabis factory

Massachusetts Officials Unveil Framework For Marijuana Social Consumption Sites

Canada’s Marijuana Legalization Law Effectively Shifts People Away From Illicit Market, While Youth Use Remains Steady, Government Report Shows

📺 YouTube

Organigram Acquires Motif & Cannabis Rescheduling Stage Is Set | Trade to Black

What we covered:

✅ On our latest Trade To Black podcast, Beena Goldenberg, CEO of Organigram (Nasdaq: OGI), will join us to discuss the company’s acquisition of Motif that will cement them as the #1 LP in Canada from a total marketshare perspective.

We will also be covering the hemp ban that was hot of out Lt. Governor Dan Patricks office down in Texas. The NFL is lowering their standards for drug testing for cannabis in the best way possible.

Also the ALJ schedule for the landmark hearing as it relates to marijuana rescheduling was released this week and it look like a pretty practical timeframe. We will be breaking it down and what to expect as this hearing kicks off in the new year.