Announcements

Job offersmore »

Tweeting Growers

Top 5 - yesterday

Top 5 - last week

Top 5 - last month

Exchange ratesmore »




Aurora completes acquisition of CanniMed

Aurora and CanniMed have entered into a support agreement whereby the Board of Directors and the Special Committee of the CanniMed Board have agreed to support a new offer made by Aurora for the acquisition of all of the issued and outstanding shares of CanniMed not owned by Aurora. In addition to the Board and Special Committee, the new offer will continue to be supported by certain CanniMed shareholders representing 36% of CanniMed's outstanding shares and by Brent Zettl, President and CEO of CanniMed.

The total consideration for CanniMed under the New Offer is approximately $1.1 billion based on Aurora's implied share price of $12.65. The maximum amount of cash available under the amended offer will be $140 million, and the number of Aurora shares to be issued will be between approximately 72 million (assuming full cash elections) and 84 million (assuming full share elections and no cash elections).

Termination of Newstrike arrangement agreement
In connection with the New Offer, CanniMed has entered into a termination agreement with Newstrike, terminating the arrangement agreement between Newstrike and CanniMed, resulting in the payment of a $9.5 million break fee paid to Newstrike. As a result, the CanniMed shareholder meeting originally scheduled for January 23, 2018 and adjourned to January 25, 2018 has been cancelled.

Management commentary
"We are very pleased to have come to terms with CanniMed on this powerful strategic combination that will establish a best-in-class cannabis company with operations across Canada and around the world," said Terry Booth, CEO of Aurora. "Market recognition of Aurora's continued performance and strategy execution since we first announced our intention to acquire CanniMed allows us to share that benefit directly with CanniMed shareholders by increasing the offer price, as well as by offering a cash component. The amended offer includes value certainty and represents a full, compelling and immediate 75% premium over CanniMed's 20-day average price ending January 17, 2018, the day prior to CanniMed and Aurora disclosing they were in discussions. Aurora now invites CanniMed shareholders to share in Aurora's ongoing growth, as we continue to create superior shareholder value, by joining with the CanniMed Board of Directors and tendering their shares to our amended offer."

Brent Zettl, President and CEO of CanniMed, added, "A testament to the great team at CanniMed, this transaction clearly confirms that the Company has been highly successful in becoming a preeminent global leader in the medical cannabis industry. In this leadership position, CanniMed has provided invaluable education, resources, support and relief of symptoms for thousands of patients served around the globe."

"This is an excellent outcome for both Aurora's and CanniMed's shareholders after a hard-fought and diligently negotiated process," said Cam Battley, Aurora's Chief Corporate Officer. "We now look forward to warmly welcoming CanniMed's employees and forging one unified team. Together, under the Aurora banner we'll continue to invest in domestic and international growth, and continue executing on our strategy of building the most dynamic, innovative integrated cannabis company in the world."

For more information:
Aurora
P.O. Box 209
Cremona, AB. T0M0R0
1-844-928-7672
auroramj.com

Publication date: 1/25/2018

 


 

Other news in this sector:

8/17/2018 Hydroponics and NFTs shown in Thailand
8/17/2018 Fluence appoints David Cohen as COO
8/17/2018 The seed shift has started
8/16/2018 Rabobank: EUR 1,698 million net profit in first half 2018
8/16/2018 Full Harvest closes $8.5 million Series A to solve food waste problem
8/16/2018 Illumitex expands to Canada
8/16/2018 CAN (SK): David Marit becomes provincial agriculture minister
8/15/2018 Pete's Living Greens names Brian Cook as President
8/15/2018 Oboya board member decides to resign
8/15/2018 Village Farms reports net loss, cannabis production ramps up
8/15/2018 Future Farm announces strategic financing, new corporate secretary
8/14/2018 UK: BASIS celebrates its 40th anniversary
8/14/2018 Dr. Hong Zhu promoted to Senior VP of R&D at BioConsortia
8/13/2018 "Investing in consumer trust pays off in the end"
8/13/2018 US (HI): Kilauea Community Agricultural Center continues to grow
8/13/2018 UK: Ebtech Group celebrates 10 years
8/13/2018 RHP certification for Nestaan
8/10/2018 NL: New test facility for NovaCropControl
8/10/2018 UK: Horticulture specialist joins AHDB Board
8/10/2018 UK: Assessing financial needs of your horticultural business