(Reuters) - Organigram Holdings Inc said on Tuesday it has acquired The Edibles & Infusions Corp (EIC) in a C$35 million ($27.88 million) stock deal, as the cannabis producer looks to tap surging demand for pot-based edibles and soft chews. The U.S.-listed shares of Organigram were up 2% at $3.56 in premarket trade, after the Canadian company announced its deal with Vancouver-based pot firm AgraFlora Organics International Inc, which owns 43% of EIC. Pot edibles, like gummy bears, brownies and drinks, have been the biggest beneficiaries of a demand windfall for cannabis-related companies during the pandemic, as consumers stuck at home spent more on their products. “Edible products remain an important product category to Organigram, and EIC represents an ideal partner with which to expand our market presence in this category as well as other derivative cannabis categories,” Organigram Chief Executive Greg Engel said. The deal comes on the heels of British American Tobacco announcing last month that it would buy a nearly 20% stake in Organigram for about 126 million pounds ($174.30 million), as it looks to diversify beyond its main tobacco business. Organigram said it currently expects first sales of EIC-manufactured soft chews in the fourth quarter of fiscal 2021. The EIC deal has received approval from the Toronto Stock Exchange, the company said. Hyperion Capital Inc acted as exclusive financial advisor to Organigram and Goodmans LLP acted as legal advisor. ($1 = 0.7229 pounds) ($1 = 1.2555 Canadian dollars)