Aurora Cannabis closes $1.1bn CanniMed deal
Aurora Cannabis has closed its deal with CanniMed Therapeutics in what is being described as a “friendly offer”.
The process of combining the two companies can now begin.
70.66% of CanniMed’s shares have been tendered in a stock-and-cash deal worth $1.1bn.
Aurora will now issue approximately 50mn shares and pay about $98mn in cash for CanniMed. The shares will be tendered on Thursday.
This is the end of a “hostile takeover” that began six weeks ago and finally concluded on Friday.
A CanniMed press release stated: “all of the conditions to the Offer have been met, Aurora will take up the tendered CanniMed shares and pay for those shares as soon as possible”.
With recreational use of marijuana to be legalised in Canada this summer, this is the largest merger/acquisition in the industry to date.
When the takeover was first announced in January, Aurora CEO Terry Booth said: “We are very pleased to have come to terms with CanniMed on this powerful strategic combination that will establish a best-in-class cannabis company with operations across Canada and around the world. Market recognition of Aurora’s continued performance and strategy execution allow us to share the benefit directly with CanniMed shareholders by increasing the offer price, as well as by offering a cash component.”