OrganiGram Holdings Inc (OGI) said Monday that proxy advisory firm Institutional Shareholder Services has recommended investors vote in favor of its proposed acquisition of Sanity Group.

The transaction provides a compelling strategic rationale by offering the combined enterprise increased scale, geographic diversification, and a stronger balance sheet, the company said.

The advisory firm also expressed strong institutional confidence in the deal, pointing to a premium-priced private placement financing from the cannabis producer's largest shareholder, OrganiGram said.

The company also said an independent valuation supported the recommendation, which is scheduled to be voted on at a special meeting on March 30.