Organigram Global agreed on 18 February to acquire the shares of Berlin-based Sanity Group it did not already own, for upfront consideration of €113.4m and an earnout of up to €113.8m.
Why Organigram Global Inc. is buying Sanity Group GmbH
Organigram said the deal makes it a global pure-play cannabis company with leading positions in the two largest federally legal cannabis markets, Canada and Germany. It expects to sell more high-margin flower into Europe and to use Sanity's plans to enter the UK and Poland and grow in Czechia. Sanity also runs two specialty stores in Swiss cannabis pilot projects.
“This transformational acquisition will bring together two market leaders, extend our commercial footprint into Europe”
Deal terms and financing
The upfront payment is €80.0m in cash and €33.4m in Organigram shares priced at C$3.00, a 71% premium to the 17 February close. The earnout, tied to Sanity's performance over the 12 months after closing, is worth up to €113.8m, with the first €20m in cash. BAT, which held interests in both companies, opted to take Organigram shares instead of cash for its Sanity stake.
Regulatory approvals and timing
The deal required customary clearances, including a foreign direct investment filing with Germany's Federal Ministry for Economic Affairs and Energy. Organigram later completed the acquisition. In August 2026 it amended the purchase agreement to replace the performance earnout with a fixed earnout at 85% of the original maximum, payable by 1 May 2027.
Market context
Founded in 2018, Sanity Group grew net revenue from €9m in 2023 to €19m in 2024 and €60m in 2025, with gross margin rising to 47%. Organigram put the German medical cannabis market at more than €2bn in 2025, serving about 800,000 patients after the 2024 legal reform.
