BAT's C$187.5 Million Organigram Bet Lands Alongside FDA Nod for Velo and a Goldman Upgrade
Published on 11/07/2026 at 04:43 | Editorial boerse-global.de
British American Tobacco has committed C$187.5 million to buy Organigram shares at C$1.33 apiece, a capital pledge tied to Organigram's takeover of Aurora Cannabis and timed to close alongside that deal. Organigram, not BAT, is the acquirer of Aurora. Press reports suggested the funding commitment helped finance the transaction, and coverage linked BAT's share-price slide on Tuesday to the investment agreement — though the company's own disclosures do not establish that connection.
The stock's retreat continued into a second session, with shares down 2.3% as a global selloff in technology stocks weighed on London markets. Media reports described a weaker open for the London exchange, with losses also hitting the FTSE 100 and AstraZeneca.
FDA Clears 24 Velo Products
Regulatory news offered a counterweight. On 30 October the US Food and Drug Administration authorised the marketing of 24 Velo nicotine pouch products, each containing 4 mg of nicotine. The manufacturer is Modoral Brands, an operating company of Reynolds American within the BAT group.
On the capital-return side, BAT reported on Monday the repurchase of 596,824 of its own ordinary shares under its buyback programme, with the purchases made between 26 and 30 October. The company separately disclosed the issuance and allotment of 45,205 ordinary shares under its Sharesave employee savings plan between 1 and 30 October.
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Goldman Turns Bullish
Goldman Sachs lifted its rating on BAT from "Neutral" to "Buy" on Monday, according to media reports, and raised its price target to 5,600 pence from 5,200 pence. The analysts pointed to a clearer path toward sustainable organic revenue growth.
Governance changes are also in motion. BAT announced on 28 October the appointment of Bruce Sewell as an independent non-executive director, effective 1 January 2027. He will also serve on the audit and nomination committees.
Insider Buying and a Stake Shift
Filings showed a reduced voting stake held by The Capital Group Companies at 17.975584%, down from 18.023677%, with the relevant threshold crossed on Wednesday. The shares fell 2.5% that day; the disclosure does not establish a link between the price move and the stake notice.
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Separately, chief executive Tadeu Marroco and six other senior managers each acquired three ordinary shares on Wednesday through the company's own share participation plan. Those were purchases within the programme rather than open-market transactions signalling conviction.
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