Canadian cannabis producer Organigram increased its investment in cannabinoid biosynthesis company Hyasynth Biologicals, the companies announced.
The investment comes via an additional 2.5 million Canadian dollars ($1.96 million) worth of secured convertible debentures in Hyasynth, bringing Organigram’s investment in the Montreal company to CA$10 million.
The companies said proceeds of the cash infusion are intended to boost Hyasynth’s production and investment in new cannabinoid technologies, including rare cannabinoids and business development efforts.
Moncton, New Brunswick-based Organigram acquired CA$5 million of Hyasynth debentures in 2018, then another CA$2.5 million in October 2020.
In October 2020, Hyasynth used a proprietary yeast strain it modified to contain the genes from cannabis responsible for synthesizing CBD.
The company said the process would reduce the time currently needed to grow and extract CBD from greenhouse-grown cannabis or farm-grown hemp.
Organigram still has the right to appoint two of Hyasynth’s seven board members.
Hyasynth “achieved tremendous scientific advancement in the cannabinoid biosynthesis space with technology expected to be protected by intellectual property,” Organigram CEO Beena Goldenberg said in a statement.
According to Organigram Chief Strategy Officer Paolo De Luca, the company sees “biosynthesis as a crucial path in developing key active ingredients for cannabis-based products.”