Aurora Cannabis Inc. formally initiated its all-stock hostile takeover bid for CanniMed Therapeutics Friday, on the condition that the medical marijuana manufacturer cancel its own planned acquisition of Newstrike Resources Ltd.
The Vancouver-headquartered licensed marijuana public limited company says in a statement it placed a newspaper ad for its offer, valued at $24 per stake, and a takeover bid circular will be mailed to CanniMed’s shareholders.
«We believe that we will-power be able to accelerate CanniMed’s growth more effectively than au courant management, and so we invite and encourage CanniMed’s shareholders to tender their interests to the bid,» said Aurora CEO Terry Booth in a news release Friday.
Aurora also silhouetted the conditions of its offer, including that CanniMed’s recently proposed possessions of The Tragically Hip-backed marijuana company Newstrike not proceed and be terminated.
Aurora estimates its offer, which would create the second-largest medical-cannabis company in Canada, commitment remain on the table until March 9, 2018.
This comes after Aurora beginning announced on Nov. 14 it submitted its takeover proposal to CanniMed’s board, and that it had compatibilities with shareholders representing 38 per cent of CanniMed’s outstanding parts to support its bid. It gave CanniMed until Nov. 17 to respond.
On Nov. 14, CanniMed conceded Aurora’s announcement but said it did not receive a formal offer. CanniMed also go on increased it was in advanced discussions to acquire Newstrike, which has a partnership with iconic Canadian amaze band The Tragically Hip. On Nov. 17 CanniMed announced it had reached a definitive ahead to acquire Newstrike.
By Nov. 20, Aurora said it did not get a response from CanniMed and drawing to go hostile with its offer this week
CanniMed said Wednesday it had assembled a special committee in anticipation of a formal offer from Aurora.
Dues of Aurora Cannabis were up more than six per cent in morning employment to $7.19 in Toronto, while CanniMed shares were off by three cents at $20.95 and Newstrike keep accumulate slipped two cents to 51 cents.
Aurora has been on a shopping binge, announcing the purchase of greenhouse design firm Larssen Ltd. on Thursday morning and Quebec-based medical marijuana applicant H2 Biopharma Inc. tardier that evening.
After Aurora’s latest $100 million back announced earlier this month, there will be more acquisitions to crop up b grow, said Beacon Securities analyst Vahan Ajamian.
«The company is on an M&A debauch, and they still have $340 million of cash,» he said. «They see superlative value in assets in Canada and internationally, and they’re going to keep magnifying to build an international behemoth.»