BLG, Davies, MLT Aikins, Osler, Miller Thomson among legal counsel
Deal: Motif deal cements Organigram as Canada’s largest cannabis company by market share
Value: $90 million
This week’s deals roundup features Organigram’s acquisition of Motif Labs, a move that cements its position as Canada’s largest cannabis company by market share, alongside other deals shaping the business landscape. BLG, Davies, MLT Aikins, Osler, and Miller Thomson are among the legal counsel in this week’s roundup.
Organigram Holdings Inc., a leading licensed cannabis producer, has announced the acquisition of Ontario-based Motif Labs Ltd., in a landmark deal valued at an upfront consideration of $90 million, consisting of $50 million in cash and $40 million of Organigram common shares.
Borden Ladner Gervais LLP served as the legal counsel to Organigram, with BMO Capital Markets as the exclusive financial advisor.
Davies Ward Phillips & Vineberg LLP served as the legal counsel to Motif, with Jefferies as the exclusive financial advisor.
MLT Aikins acted on behalf of both Organigram and Motif on specified regulatory matters.
“The highly complementary acquisition of Motif establishes Organigram as Canada’s largest cannabis company by market share and accelerates our vision to be a leading cannabis company across all major categories, driven by a relentless focus on the consumer of today and tomorrow,” said Organigram CEO Beena Goldenberg. “Winning in Canada, the world’s largest federally legal recreational market, supported by leading brands and best-in-class operations, innovation and product development, provides the platform to unlock global opportunities as evolving attitudes towards cannabis drive regulatory changes in new and exciting markets.”
“Motif was founded in 2017 with a vision to leverage manufacturing expertise to succeed in the production of cannabis extracts,” said Motif CEO and founder Mario Naric. “We are proud to say that today, not only is Motif one of Canada’s largest and most efficient extractors but we have also commercialized a portfolio of leading, widely distributed brands that have unlocked leading market share positions of number one in vapes and number three in infused pre-rolls.”
Vancouver-based Lundin Mining Corp. signed a definitive deal to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden AB, a Swedish multinational metals, mining, and smelting company, for up to approximately $2.15 billion (US$1.52 billion). The mines are Lundin’s oldest assets.
Osler, Hoskin & Harcourt LLP is serving as legal counsel to Boliden with a team consisting of Alex Gorka, Patrick Sullivan, Neil Rosen, Shira Dveris (Corporate), Christine Jackson, Alex Hodgson (Commercial) and David Davachi (Tax).
“Neves Corvo and Zinkgruvan have played a significant role in catalyzing the company to become a multi-asset base metals producer on a global scale,’’ said Lundin president and CEO Jack Lundin. “The sale will further strengthen our balance sheet to support the company’s growing portfolio in South America and enable management to concentrate our focus in an area that will provide the greatest long-term value for our shareholders. It is an opportune time to optimize our portfolio through this divestiture as we drive towards becoming a top-tier copper-dominant mining company.”
The deal is expected to close in mid-2025, subject to customary closing conditions and regulatory approvals.
Funds advised by SK Capital Partners, LP, a US-based private investment firm focused on the ingredients, specialty materials, and life sciences sectors, completed the acquisition of Spectra Confectionery Ltd., Canada’s largest manufacturer of premium decorative toppings, candy panning, and confectionery products, from founders Bill and Maureen Georgas and the Georgas family.
Miller Thomson acted as counsel to Spectra with a team comprised of Richard Leblanc, Jay Sernoskie, Mark Milanetti and Eugene Yeung (Corporate / M&A), and various specialists including Carolyn Inglis (Tax), Karen Durell (IP), Ali Baniasadi, Stuart Chaimberg, Keshbir Brar (Real Estate), Bryan Buttigieg (Environmental), and Zeinab Yousif (Employment).
Coldwater Corporate Finance served as the financial advisor to Spectra. Cascadia Capital served as the financial advisor to SK Capital. Debt financing was provided by MidStar Capital and Stellus Capital.
The investment in Spectra continues SK Capital’s focus on the food ingredients sector, representing its seventh investment in addition to J&K Ingredients, Phoenix Flavors & Fragrances, Tilley Distribution, Florachem, AEB Group, and Niacet Corporation.
