Organigram to Acquire Sanity Group in Landmark €250 Million European Cannabis Deal

BERLIN, 18 February 2026 — In a move that signals a massive consolidation within the European medicinal and consumer cannabis markets, Canadian producer Organigram Global Inc. (NASDAQ: OGI) has announced a definitive agreement to acquire Berlin-based Sanity Group. The deal, valued at up to €250 million, represents one of the largest cross-continental transactions in the industry to date, positioning the combined entity as a dominant force in the German market following the country’s recent regulatory shifts.

The Deal Structure: Upfront Cash and Performance Milestones

The acquisition is structured to balance immediate value with long-term growth targets. According to financial filings released today, Organigram will provide an upfront consideration of €113.4 million. The remaining balance, totaling up to €113.8 million (with some reports citing a total potential ceiling of €250 million including debt and adjustments), is tied to specific financial performance earnouts.

These performance-based milestones are reportedly linked to Sanity Group’s revenue and EBITDA targets through the end of March 2027. This “earn-out” structure ensures that the founders and leadership remain incentivised to maintain the company’s aggressive growth trajectory in the European Union.

Sanity Group: From Berlin Startup to Market Leader

Founded in 2018 by entrepreneurs Finn Age Hänsel and Fabian Friede, Sanity Group quickly rose to prominence as Germany’s most well-funded cannabis startup. Headquartered in Berlin, the company has built a diverse ecosystem that spans medicinal pharmaceuticals and consumer wellbeing.

Key Brands and Subsidiaries

Sanity Group’s portfolio, which Organigram will now integrate into its global supply chain, includes several high-performing verticals:

Vayamed: A pharmaceutical wholesaler specialising in the distribution of medicinal cannabis to pharmacies across Germany.
AVAAY Medical: A premium medicinal brand known for high-quality flower and terpene-rich products.
Endosane Pharmaceuticals: A division focused on the development of finished pharmaceuticals and cannabinoid-based medicines.
Belfrit: The group’s consumer-facing wellness and CBD arm.

Strategic Leadership

Finn Age Hänsel, a former managing director at Rocket Internet and an experienced entrepreneur who studied in Germany, Hungary, and New Zealand, has been the public face of the company. His leadership, alongside Fabian Friede, secured early-stage backing from high-profile investors including Snoop Dogg’s Casa Verde Capital, Navy Capital, and even tobacco giant British American Tobacco (BAT).

Strategic Implications for Organigram

For Organigram, the acquisition is a “land grab” for the German market, which is currently the largest legal medicinal cannabis market in Europe. By acquiring a local operator with established distribution networks (Vayamed) and a deep understanding of German regulatory frameworks, Organigram bypasses the significant barriers to entry that have hindered other North American firms.

The deal allows Organigram to leverage its Canadian production expertise to supply Sanity Group’s established European brands, creating a vertically integrated powerhouse capable of scaling as further European nations move toward liberalisation.

Industry Context: The “Canna-Rocket” Ignites

Market analysts have dubbed this transaction the “Canna-Rocket” (Cannarakete), noting that it marks a shift from speculative investment to industrial-scale consolidation. With the backing of “Big Tobacco” through Organigram’s existing partnerships, the deal suggests that the global cannabis industry is entering a mature phase where established players are buying up regional leaders to secure market share ahead of potential federal changes in other jurisdictions.

Frequently Asked Questions (FAQ)

Who founded Sanity Group?

Sanity Group was founded in 2018 by Finn Age Hänsel and Fabian Friede in Berlin, Germany.

How much did Organigram pay for Sanity Group?

The deal includes an upfront payment of approximately €113.4 million, with the total transaction value potentially reaching €250 million based on performance-related earnouts through 2027.

What happens to the Sanity Group brands like Vayamed?

Under the terms of the acquisition, Organigram intends to harness the full potential of Sanity Group’s existing brands, including Vayamed and AVAAY Medical, to expand its footprint in the European medicinal and research sectors.

Is Sanity Group involved in recreational cannabis?

While Sanity Group has focused heavily on medicinal cannabis and CBD wellness, it has been a vocal participant in the dialogue surrounding Germany’s “Pillar 2” regional pilot projects for adult-use (recreational) cannabis.

Where is Sanity Group based?

The company is headquartered in Berlin, Germany, and operates research and distribution facilities within the country.