OSC cease-trades CanniMed rights plan, orders Aurora to amend disclosures


The Canadian Thrust Posted: Dec 27, 2017 11:33 AM ET Last Updated: Dec 27, 2017 11:33 AM ET

The Ontario Deposits Commission has issued a cease-trade order for any securities issued by CanniMed Therapeutics Inc. as a armour against a hostile takeover by Aurora Cannabis Inc. 

The OSC is also ordering Aurora to rectify its take-over bid circular and related press releases to include certain poop that could affect CanniMed’s shareholders when they umpire fix to accept or reject the offer.

Among other things, Aurora is ordered to let slip how it became aware that CanniMed’s board would meet on Nov. 13 to upon an agreement to buy Newstrike Resources Ltd. 

The OSC said it denied other relief hoped by Aurora, CanniMed and a special committee of CanniMed’s board.

The order — dated Dec. 22 but circulated Wednesday — was made following a joint hearing last week inculpating the Saskatchewan and Ontario securities commissions.

CanniMed argued that Aurora worked jointly with some of its shareholders, a put disputed by Aurora. One of its conditions was that CanniMed abandon its plan to buy Toronto-based Newstrike.

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