Aurora buys CanniMed in friendly takeover that’s Canada’s biggest pot deal yet

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Aurora buys CanniMed in friendly takeover that’s Canada’s biggest pot deal yet

The $1.1 billion deal means CanniMed will abandon its plans to acquire Newstrike Resources.

EDMONTON — Aurora Cannabis Inc. has struck a friendly deal valued at $1.1 billion to buy rival licensed producer CanniMed Therapeutics Inc., bringing an end to a hostile takeover battle between the marijuana companies.

Under the agreement that will be the largest yet in Canada’s red-hot cannabis industry, Aurora has agreed to pay $43 per share in stock and cash for each CanniMed share.

That’s up from its earlier hostile offer of $24 per share for the company that Aurora had made late last year.

The new offer and the transaction are subject to customary closing conditions, including Competition Act approval.

The deal also means CanniMed will abandon its plans to acquire Newstrike Resources Ltd.
CanniMed will pay a $9.5-million break fee to Newstrike as a result of its decision.

“It has been quite a long road but it’s been well worth it,” Cam Battley, chief corporate officer at Aurora, said in a phone interview. “We’re going to create something new and very special in this sector.”

Share prices of Canadian growers have surged ahead of legalization, which is expected later this year. The country has at least 84 publicly traded companies tied to marijuana that trade on its exchanges, with a combined market valuation of $36.9 billion.

 

 

Source via FInancial Post