Good morning.
Today, we’re looking at what Organigram’s €250 million deal for Berlin-based Sanity Group signals about how Canadian cannabis firms are plotting their global expansion.
Let’s get to it.
-JB, JR, ZH
Today’s newsletter is 986 words or about a 7.5-minute read.
💡 What’s the big deal?
ORGANIGRAM
Organigram to sink up to €250 million in a deal for Germany’s Sanity Group
Driving the news: Canadian cannabis company Organigram has agreed to buy Germany medical cannabis operator Sanity Group, just as the latter company is on the verge of entering markets in the United Kingdom, Poland, and Czechia.
The move would position Organigram as a major international player with a substantial footprint in Europe.
What they're saying: “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,” said Organigram CEO James Yamanaka, in a statement announcing the deal.
Organigram previously held a stake in Sanity Group, but under the terms of the proposed acquisition, the former company would completely own Sanity just in time for that company's expansion into other European markets.
And Yamanaka himself comes to Organigram via British American Tobacco, which invested in the company.
And: “With a headline valuation of €250 million, this transaction is, to our knowledge, one of the largest of its kind, both within the German start-up scene and the European cannabis industry, particularly in the healthcare sector,” Finn Hänsel, founder and CEO of the Sanity Group said in a statement.
The deal terms: Organigram will pay Sanity's shareholders €113.4 million upfront, with the potential for an additional €113.8 million tied to Sanity's financial performance in the 12-month period following the close of the deal, which is anticipated to take place by mid-year in 2026. To get the full amount Sanity would have to make 143 million in net revenue during that 12-month period.
Sanity Group is the largest German medical cannabis producer, a market that’s expected to hit €4.5 billion by 2028, per a press release. Sanity’s revenue more than tripled from 2024 to 2025, to €60 million.
Zoom in: Organigram reported CAD $20 million in net income on $97.3 million in revenue for the first quarter. The company saw almost a 50% jump in revenue from $66.8 million in the first quarter of 2025, when the company also took a $27.5 million loss.
The company, which owns an American subsidiary, has exported cannabis to the United Kingdom, Australia, and Germany. The company made about $5 million in international medical sales in the last three months of 2025, according to a recent filing.
Organigram $OGI ( ▲ 8.66% ) which is listed on the Nasdaq, was at $1.38 USD per share as of about 3:30 ET on Feb. 18, roughly 8.27% up on the day.
Canadian cannabis firms eyeing Europe: Organigram is duking it out with competitors Aurora Cannabis $ACB ( ▼ 1.39% ) and High Tide Holdings $HITI ( ▲ 0.42% ) for dominant Canadian and global cannabis market share. This deal gives Organigram a massive step forward.
High Tide, for its part, purchased a 51% stake in German medical cannabis producer Remexian Pharma in August as well, for €27.2 million. And Aurora Cannabis CEO Miguel Martin told Cultivated last week that Europe is the cannabis industry’s “real growth story.”
It’s also a warning sign to the U.S., where cannabis isn’t federally legal and therefore U.S. firms on less-liquid exchanges, are less able to pursue these types of international deals — though Curaleaf $CURLF ( ▲ 1.27% ) has a footprint in Europe via Curaleaf International.
-ZH & JB
📣 Quotable
“Cannabis prohibition was not applied fairly, and Black communities bore the greatest harm,” New York’s Office of Cannabis Management said on social media.
“This #BlackHistoryMonth, we reflect on that history. The Office continues its work year-round through the Social and Economic Equity (SEE) Framework, with measurable progress across #NYcannabis.”
The OCM says 55% of cannabis licenses are held by SEE businesses.
⏩ Quick hits
FDA missed its Feb. 10 deadline to produce a list of known cannabinoids and define hemp containers.
Arizona Senator J.D. Mesnard has proposed adding the "creation of excessive cannabis smell" to the list of crimes that fall under the category of unlawfully using a residence to be a public nuisance.
Last month's snow storms helped push total adult-use cannabis sales in Massachusetts past the $9 billion mark.
Hawaii senators have taken up a pair of legalization bills, despite members of the state House indicating that the issue was likely dead for the 2026 session. The bills may create an opening to pursue non-commercial cannabis reform, giving lawmakers a win while avoiding the complexity of a market rollout,
👨⚖️ Lawsuits
New York's Office of Cannabis Management and licensed operator 1086 OCR both filed briefs last week urging a state appellate court to find that state cannabis law preempts local ordinances in terms of where cannabis businesses are allowed to locate.
The Third Circuit Court of Appeals ruled that federal court was not a proper venue for contract disputes that involve cannabis while it remains federally illegal. The ruling came in a dispute over cannabis consulting services and whether or not the plaintiff consultants were also owed equity.
🧳 People moves
Former Lagunitas Brewing Company execs Ron Lindenbusch and Greg Merideth are joining the board of Cornbread Hemp to help expand the company’s position in the booming THC beverage market.
🔬 Science & research
A new study out of the University at Buffalo found that individuals who switched to cannabis drinks cut down their alcohol consumption by about half, adding to the growing body of research that has found cannabis drinks can help curb alcohol abuse. Another data point for the substitution effect.
📰 What we’re reading
Cannabis and memory loss? The data may surprise you | Green State
A case (Cannabist and a Canadian collections case). | Cannabis Musings
What Cannabis Retail Pricing is Telling Us About Market Pressure in 2026 | Cannabis Industry Journal