CanniMed Therapeutics Inc. says it has been notified that the Toronto Stock Exchange will defer consideration of a shareholder rights plan adopted by the company in a bid to defend itself against a hostile takeover offer by Aurora Cannabis Inc.
The Saskatoon-based company said the TSX normally defers acceptance of shareholder rights plans adopted in response to a specific take-over bid.
It said the TSX will defer the rights plans until the TSX is satisfied that the Ontario Securities Commission will not intervene and until the rights plan has been ratified by shareholders by May 28, 2018.
CanniMed has said the rights plan will ensure its shareholders have a chance to vote on its own acquisition of Newstrike Resources Ltd. (TSXV:HIP).
The rights plan prevents Vancouver-headquartered 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 has 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.
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.