As part of the transaction, Sanity Group has been valued at up to €250 million, consisting of an initial valuation of €130 million and up to an additional €120 million tied to defined performance metrics over a twelve-month period ending April 1, 2027. This positions the agreement among the largest transactions in the European cannabis and healthcare sector to date, as well as one of the most significant deals in Berlin’s startup ecosystem in recent years.
By joining forces, Sanity Group and Organigram combine their respective strengths across the value chain: Sanity Group’s deep market knowledge and regulatory expertise in Europe complement Organigram’s extensive experience as a licensed producer, as well as its innovation and production capabilities. The shared objective is to further strengthen their position in key European markets and unlock new growth opportunities. Sanity Group will continue to operate with its existing team and brands and will further scale its European platform. At the same time, pharmacy customers and partners will benefit from enhanced resources, international connectivity, and increased innovation capacity.
As part of the closing, Max Narr, former Managing Director and Chief Strategy & Investment Officer of Sanity Group and Managing Director of its subsidiary Endosane Pharmaceuticals, has been appointed to Organigram’s Board of Directors for the duration of the agreed earnout period, where he will support the continued development of the joint business. His appointment underscores the close strategic alignment between the two organizations and ensures representation of the European perspective at the group level.
Long-term Commitment to the European Market
“Sanity Group was founded on the conviction that a sustainable medical cannabis market will emerge in Europe, and that those companies best positioned to lead will be the ones that establish robust supply chains early, invest in authentic brands, and build deep regulatory expertise,” Hänsel added. “Our goal has always been to consistently build and strengthen that foundation. We look forward to taking the next steps together with Organigram and further expanding our position in a rapidly evolving market.”
From Organigram’s perspective, this marks the beginning of the next chapter in its global strategy: “The closing of this transaction is the beginning of the next chapter in what we have been building together for some time – the creation of a truly global cannabis company,” said James Yamanaka, CEO of Organigram. “Sanity Group has established a leading position in Germany and Europe through deep expertise and disciplined execution. This combination creates a company with the scale, infrastructure, and market presence to compete at the highest level in both Canada and Germany. I am proud of what both teams have achieved to reach this point and look forward to what we will build together going forward.”
Medical Cannabis Patient Care Remains a Core Focus
Sanity Group will continue to focus on medical cannabis, innovative product development, and scientific pilot projects, while expanding its activities in both existing and new European markets, including the United Kingdom, Poland, the Czech Republic, and Switzerland. “Patient care remains at the core of everything we do,” said Hänsel. “With the additional capabilities, we are now even better positioned to improve access to medical cannabis across Europe and further professionalize patient care.”
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For further information, particularly regarding financial and capital markets-related details of the transaction, please refer to Organigram’s press release.
About Sanity Group
Sanity Group aims to improve people’s quality of life through the use of cannabinoids and the utilization of the endocannabinoid system. The focus is on cannabinoid-based pharmaceuticals and consumer goods. To harness the full potential of cannabis, Sanity Group invests in research of the cannabis plant and its active ingredients as well as in specific areas of application. Sanity Group, founded in Berlin in 2018 by Finn Age Hänsel, includes Vayamed, avaay Medical and ZOIKS (medical cannabis), Endosane Pharmaceuticals (finished pharmaceuticals), vaay (lifestyle) and Grashaus Projects (recreational cannabis Swiss pilot project).
About Organigram Global
Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiary, Organigram Inc., is a licensed cultivator of cannabis and manufacturer of cannabis-derived goods in Canada. Through its acquisition of Collective Project Limited, Organigram Global participates in the U.S. and Canadian cannabinoid beverage markets. Organigram is focused on producing high-quality cannabis for adult consumers, as well as developing international business partnerships to extend Organigram’s global footprint. Organigram has also developed and acquired a portfolio of cannabis brands, including Edison, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Tremblant Cannabis, Collective Project, Trailblazer, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. Organigram also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. Organigram is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations (Canada).
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. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking-statements. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Sanity Group 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. Forward-looking statements reflect current beliefs of management of Sanity Group with respect to future events and are based on information currently available to management including the reasonable assumptions, estimates, analysis and opinions of management of Sanity Group considering their experience, perception of trends, current conditions and expected developments as well as other factors that management believes to be relevant as at the date such statements are made. Forward-looking statements involve significant known and unknown risks and uncertainties. Many factors could cause actual results, performance or achievement to be materially different from any future forward-looking statements. There is a risk that some or all the expected benefits of the Acquisition may fail to materialize or may not occur within the time periods anticipated by Sanity Group. The challenge of coordinating previously independent businesses makes evaluating the business and future financial prospects of Sanity Group following the business combination difficult. Material risks and uncertainties that could cause actual results to differ from forward-looking statements include the inherent uncertainty associated with the financial and other projections (including projections relating to the earnout consideration) as well as market changes arising from Canadian and European governmental actions or market conditions; the prompt and effective integration of Sanity into Organigram not being possible; the ability to achieve the anticipated synergies and value-creation contemplated by the business combination not being possible or being delayed; the response of business partners and retention as a result of the business combination being negative; the impact of competitive responses to the business combination negatively impacting Sanity Group; the ability to achieve the expected manufacturing and production output including flower supply not being possible; the risk that Sanity Group may not achieve the financial performance thresholds required for the payment of some or all of the earnout consideration; and the diversion of management time on business combination-related issues. Readers are cautioned that the foregoing list of factors is not exhaustive. Other risks and uncertainties not presently known to Sanity Group or that Sanity Group presently believe are not material could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
1392-3300-0478
Pressekontakt
Jennifer Plankenbühler
Pressesprecherin | Lead Medical PR
E-Mail: jennifer.plankenbuhler@sanitygroup.com | presse@sanitygroup.com
Phone: +49 (0) 173 37 62 845
