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.
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