Marijuana Growers Aurora, CanniMed Agree to $1 Billion Merger

Marijuana Growers Aurora, CanniMed Agree to $1 Billion Merger

"We’re going to create something new and very special in this sector," the chief corporate officer of Aurora said.

January 24, 2018
Business and finance Canada

Canadian marijuana producer Aurora Cannabis Inc. agreed to acquire CanniMed Therapeutics Inc. in a C$1.23 billion ($1 billion) cash-and-stock deal that would be the largest yet in the country’s red-hot cannabis industry.

Investors will get 3.4 Aurora shares for each CanniMed share, or they can accept cash limited in aggregate to C$140 million, the companies said Wednesday in a joint statement after Bloomberg News first reported the agreement. The deal values CanniMed at about C$50.29 a share, based on Tuesday’s closing price for Aurora of C$14.79. CanniMed closed at C$37.51.

In connection with the merger, CanniMed agreed to terminate a previously agreed takeover of Newstrike Resources Ltd. and will pay the company a C$9.5 million break fee.

Read more

Top image courtesy of Adobe Stock

Marijuana Adult-Use Cannabis