One of the world’s largest tobacco companies is getting into cannabis.
Imperial Brands participated through its venture arm in a Series A fundraising round for Oxford Cannabinoid Technologies (OCT). Snoop Dogg’s cannabis-focused venture firm, Casa Verde Capital, also participated in the round.
While OCT did not publicly disclose the size of the round, sources close to the deal confirmed to Business Insider that nearly $10 million was raised.
It’s one of the first concrete signs that the tobacco industry is embracing cannabis, and positioning itself for a future with less demand for cigarettes.
“We are pleased to be partnering with OCT,” Matthew Phillips, the chief development officer of Imperial Ventures, said in a statement. “Cannabinoid products have significant potential and our investment enables Imperial to support OCT’s important research while building a deeper understanding of the medical cannabis market.”