In a significant move that is sure to yield a butterfly effect across the international cannabis industry landscape, Organigram announced today its proposed acquisition of leading German cannabis company Sanity Group. The two cannabis industry powerhouses announced that they have entered into a definitive agreement.

“Upon closing of the Acquisition, Organigram will pay shareholders of Sanity (collectively, the “Vendors”) upfront consideration of €113.4 million consisting of €80.0 million cash and share consideration of €33.4 million in Organigram shares (the “Upfront Consideration”). In addition, the Vendors will be entitled to receive consideration of up to €113.8 million, with the first €20 million in cash and up to €93.8 million in Organigram shares (“Earnout Consideration”) based on Sanity’s financial performance for the 12-month period following the closing.” the companies stated in a press release regarding the terms of the deal.

“The Upfront Consideration shares are expected to be priced at C$3.00 per Organigram share, representing a 71% premium to the C$1.75 closing price on the Toronto Stock Exchange (“TSX”) on February 17, 2026. The Earnout Consideration shares shall be priced at the TSX 20-day VWAP on the trading day prior to settlement, subject to a C$3.00 floor and C$4.00 cap.” they added.

“The proposed acquisition of Sanity Group marks a pivotal step in Organigram’s global expansion strategy as a leader in the rapidly expanding cannabis industry,” said James Yamanaka, CEO of Organigram. “This transformational acquisition will bring together two market leaders, extend our commercial footprint into Europe, and strengthen our competitive edge in the world’s largest federally legal cannabis markets.”

Sanity Group, which is based in Berlin, Germany, was founded in 2018. The company has since gained a significant market share in the German medical cannabis market, and risen to become one of Europe’s most prominent and respected cannabis companies.

“The German medical cannabis market was valued at over €2 billion in 2025, serving approximately 800,000 patients. The market is forecast to surpass €4.5 billion by 2028 expecting a 50% year-over-year growth rate, with the patient population expected to reach around 1.8 million (~2.0% of the population), bringing it on par with other major global medical markets, such as Israel (1.9%) and Australia (2.3%).” the companies stated about Germany’s emerging legal medical cannabis industry.

Sanity Group has experienced year-over-year net revenue growth, from a reported €9 million in calendar 2023 up to €60 million in 2025, including €19 million generated in the last quarter of calendar 2025. That upward trend is expected to continue throughout 2026. The company possesses an estimated #2 market share position as of January 2026, up from #5 in January 2025.

In addition to operating in Germany’s legal medical cannabis market, Sanity Group has strategically expanded its European footprint into Switzerland, Poland, the UK, and Czechia. Sanity Group also operates two locations in Switzerland’s regional adult-use cannabis commerce pilot program, with growing study participant numbers.

“I am truly excited to embark on this new chapter as our company joins forces with Organigram. Sanity’s strong focus in Europe is highly complementary to Organigram’s strengths, and I have tremendous confidence in their vision and ambitious business plan to scale internationally. Together, we are poised to unlock significant growth opportunities, especially as new European markets open to both medical and recreational cannabis programs. Organigram has already proven to be an exceptional partner, bringing deep expertise in areas such as cultivation, manufacturing, R&D, and innovation. These strengths will be vital as we collectively shape the rapidly expanding global cannabis landscape” said Finn Age Hänsel, CEO of Sanity Group.

“Organigram’s proven track record in executing highly strategic and complementary M&A is exemplified by our proposed acquisition of Sanity Group—a transaction that is both strategically significant and financially accretive. By combining our strengths as focused cannabis pure play companies, we will be well-positioned to deliver meaningful value for our shareholders and accelerate growth in key European markets. We are truly excited about the opportunities ahead with this acquisition as we are now poised to set a new standard in the global cannabis sector together,” said Paolo De Luca, Chief Strategy Officer at Organigram.