Aurora Cannabis has been persistent for months and despite the aggressive resistance of CanniMed Therapeutics, Aurora is buying the smaller pot producer. The deal was officially announced late last week.
Aurora Cannabis and CanniMed Therapeutics will merge their business and form a new $6bn company, in a deal that is so far the largest deal in Canada’s cannabis sector. Aurora will acquire CanniMed in what they said are good terms, in a deal valued at C$1.1 billion ($852 million) or C$43 ($34.90) per CanniMed share.
The end result will mean that there is a new giant atop the industry, displacing Canopy Growth from the top spot position.
The companies seemed to have celebrated the news.
“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,” said Terry Booth, CEO of Aurora. “Market recognition of Aurora`s continued performance and strategy execution since we first announced our intention to acquire CanniMed allows us to share that benefit directly with CanniMed shareholders by increasing the offer price, as well as by offering a cash component. The amended offer includes value certainty and represents a full, compelling and immediate 75% premium over CanniMed’s 20-day average price ending January 17, 2018, the day prior to CanniMed and Aurora disclosing they were in discussions. Aurora now invites CanniMed shareholders to share in Aurora’s ongoing growth, as we continue to create superior shareholder value, by joining with the CanniMed Board of Directors and tendering their shares to our amended offer.”
“A testament to the great team at CanniMed, this transaction clearly confirms that the Company has been highly successful in becoming a preeminent global leader in the medical cannabis industry. In this leadership position, CanniMed has provided invaluable education, resources, support and relief of symptoms for thousands of patients served around the globe” Brent Zettl, President and CEO of CanniMed said.
“This is an excellent outcome for both Aurora’s and CanniMed’s shareholders after a hard-fought and diligently negotiated process,” said Cam Battley, Aurora’s Chief Corporate Officer. “We now look forward to warmly welcoming CanniMed’s employees and forging one unified team. Together, under the Aurora banner we’ll continue to invest in domestic and international growth, and continue executing on our strategy of building the most dynamic, innovative integrated cannabis company in the world.”