Canada’s Aurora Cannabis Inc. is seeking to takeover CanniMed Therapeutics in an all-stock $455 million deal, according to a Bloomberg report. The deal values CanniMed stock at C$24 a share, 57 percent above Tuesday’s Toronto Stock Exchange closing price.
Aurora Executive Vice President Cam Battley told Bloomberg that the firm is “making a very big push into Europe” and the deal would be “a potential game-changer” in both the Canadian and international cannabis markets.
Meanwhile, CanniMed is in their own discussions to acquire Canadian medical cannabis company Newstrike and have advised shareholders “to take NO action until such time as the Board has had the opportunity to full consider and make a recommendation” regarding Aurora’s unsolicited offer.
“At this time, the Board has not received a formal written offer from Aurora,” the company said in a statement. “CanniMed notes that the unsolicited offer is speculative as the Aurora press release cautions that Aurora may determine not to proceed with its proposal in the circumstances described in the Aurora press release.”
According to the Bloomberg report, investors holding 38 percent of CanniMed stock support the bid and the company has until 5 p.m. tomorrow to respond to the proposal before a formal offer is made.