Business of Cannabis..
Here’s the introduction to the report
Tobacco giant British American Tobacco (BAT) has announced the launch of a second investment fund as part of its corporate venture arm, Btomorrow Ventures (BTV).
Its first £150 million BTV fund, launched in 2020, has now made investments in 28 companies, including a string of prominent cannabis businesses.
Billed as part of the company’s ‘transformation agenda’, these investments are aimed at diversifying the company’s offering away from tobacco brands, including Dunhill, Lucky Strike and Benson & Hedges.
Its new £200m Fund II will reportedly continue the company’s investment strategy within the ‘wellbeing and stimulation space’, and is expected to further the company’s growing reach within the cannabis space.
To date, BAT has invested in leading Canadian cannabis producer Organigram, acquiring a near 20% stake for approximately £126 million in 2021.
In July 2021, BTV led a $25.4 million Series A financing round for cannabinoid biotechnology research company Trait Biosciences.
A year later, BAT led a $37.6 million Series B financing round for this Berlin-based cannabis health and life-science company, Sanity Group.
The same month, BTV made a strategic investment in Kanvas, a company specialising in cannabis vaporisation technology solutions, and participated in cannabinoid ingredient manufacturer and product development company OBX’s Series C financing round.
The growing presence of tobacco investment in the cannabis space has become a divisive topic, with many in the cannabis industry accusing companies such as BAT and Philip Morris International of using cannabis to ‘greenwash’ their companies’ reputations.
However, given the continued lack of institutional investment in the cannabis industry and the financial heft behind these tobacco giants, some see it as a necessary was to secure much-needed capital.
Read more detail at Business of Cannabis
