CanniMed Therapeutics Inc. says it has adopted a shareholder rights plan in a bid to defend itself against a hostile takeover offer by Aurora Cannabis Inc.
The Saskatoon-based company says the move will ensure its shareholders have a chance to vote on its own acquisition of Newstrike Resources Ltd. (TSXV:HIP).
The rights plan prevents Aurora from acquiring any CanniMed shares other than those tendered to its hostile bid or from entering into any lock-up agreements other than those it has already signed and filed, CanniMed said.
Aurora (TSX:ACB) has made an all-stock offer for CanniMed worth up to $24 per share, with one of its conditions being that CanniMed abandon its own proposed acquisition of Newstrike.
Aurora has also said that it has signed lock-up agreements with four CanniMed shareholders – which comprise 38 per cent of outstanding shares – to support its unsolicited takeover bid.
CanniMed (TSX:CMED) has said the Aurora acquisition does not make sense for its shareholders, but the combination with Newstrike will deliver significant shareholder value.