CanniMed files $725M lawsuit against Aurora, others over hostile takeover bid
Saskatooon-based CanniMed Therapeutics Inc. has filed a lawsuit against Aurora Cannabis Inc., alleging what it calls “multiple claims of wrongdoing” related to Aurora’s hostile bid to acquire CanniMed.
In a statement released Friday evening, CanniMed (TSX:CMED) said it filed a lawsuit in Ontario Superior Court alleging Aurora (TSX:ACB) and others conspired to injure CanniMed’s economic interests.
CanniMed said it’s also seeking personal damages against one current and one former member of its board for their alleged involvement in the purported conspiracy.
It said the action, which has not yet been served, seeks $725 million in damages.
The allegations have not been proven in court.
Aurora’s chief corporate officer, Cam Battley, said CanniMed is “suing their own shareholders,” adding that the company should never have gone public.
“Things are a mess over there,” said Battley. “They should have remained private. By going public, they have exposed themselves to the realities and the discipline of the market.”
Aurora also released a statement amending some aspects of its takeover bid, but made no mention of the lawsuit.
The new statement provides greater detail on how Aurora became aware that CanniMed’s board would be meeting in November 2017 to consider acquiring Newstrike Resources Ltd. (TSXV:HIP)
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