CanniMed Therapeutics is taking a hard-line stance in it’s intention to deny every bid and maneuver by Aurora Cannabis to acquire the brand, although an acquisition makes the most financial and fiscal sense.
CanniMed Therapeutics’ stock has grossly under-performed during the 2017 year and the premium of 57% in the all-stock deal offered by Aurora Cannabis would make up for the loss and struggles the company incurred.
If a deal does go through it opens up a medical patient pool of around 40,000 people and a huge boost in production in the neighborhood of 130,000 kilograms of dried cannabis annually, which are hefty numbers to consider.
CanniMed is rejecting anything and everything from Aurora Cannabis, opting to remain an independent company.
Late last month CanniMed’s board adopted a poison pill tactic that’ll block Aurora Cannabis from buying any CanniMed Therapeutics shares and also prevents Aurora Cannabis from signing any new lock-up agreements to support its offer.
Additionally, earlier this week CanniMed Therapeutics CEO Brent Zettl asked regulators in Saskatchewan and Ontario, Canada to dig more deeply into Aurora’s bid raising concerns that that an acquisition of CanniMed Therapeutics could cost Saskatchewan jobs and also that there may have been a breach of securities laws that occurred as a result of Aurora’s unsolicited offer, pointing to potential confidentiality breaches and securities violations.