Curaleaf Holdings Inc. says it will sweeten the offer it’s made to buy rival pot firm Aurora Cannabis Inc.
Stamford, Conn.-based Curaleaf now wants to make an offer valued at US$5 per Aurora share. The offer will be comprised of 0.4013 Curaleaf shares plus US$1 cash, based on Curaleaf’s Oct. 2 closing share price.
The company says it’s boosting its bid despite Aurora rebuffing its past overtures because Curaleaf wants to signal it’s trying to negotiate in good faith and show it’s worth combining the cannabis businesses.
Over the summer, Curaleaf made a bid for the Edmonton-based company that was worth US$4 per Aurora share.
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That bid included 0.3463 of a Curaleaf subordinate voting share plus 75 cents US in cash, based on its closing share price on Aug. 10.
Aurora urged shareholders to reject Curaleaf’s initial hostile takeover bid, saying the offer undervalued Aurora and was not in the best interests of shareholders.
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“Today’s announcement by Curaleaf is not a formal revised bid, and Aurora has not yet received the materials required to conduct a full and proper evaluation,” Miguel Martin, Aurora CEO, says in a news release.
“While the announcement suggests an intention to address concerns Aurora identified with Curaleaf’s initial Hostile Bid, the Special Committee of independent directors will review any formal revised offer once received with the same rigorous, independent and disciplined process applied previously.”
That idea to sell it is Canada’s cash cow. Cannabis has out sold alcohol for the second year in a row. This is not just any cannabis company Aurora. It is a pharmaceutical company that doctors refer patients to.. I being one of them. Since they legalized cannabis in Canada, it’s just been a free-for-all. An individuals are on the own to self medicate or learn about it.. many doctors is still refusing to help people who qualify.
No wonder management is hostile, they will be losing their gravy train, as well millions of their options will be canceled.
If you held $1,000 of Aurora 5 years ago, the takeout, w/premium is now worth a total of just $12.50.
If however, your $1,000 of stock was from the peak of a couple years earlier (the legalization spike) you would now be getting back $5 from your $1,000.
Management has destroyed the company and are now fighting to keep their gravy train.
Nice to know they are an American firm. I will buy no more of their product. The http://www.canadiancannabisbrands.ca/brands site lists all of the Canadian brands.
Oh look, American takeovers of Canadian businesses.
I bet that will be easier and easier the longer the trade escalations continue.
Elbows up morons.