Aurora Cannabis has reaffirmed its recommendation that shareholders reject Curaleaf's revised hostile takeover offer, saying the improved terms still fail to reflect the value of the debt-free company.
Why Curaleaf Holdings is buying Aurora Cannabis
Curaleaf said combining Aurora's EU-GMP cultivation and manufacturing with its own processing and international distribution would lift margins and speed patient access across Europe, Canada, Australia and New Zealand, creating a group present in 17 countries. It expects at least $40m of annual cost synergies.
Deal terms and financing
Aurora holders would receive 0.3463 Curaleaf subordinate voting shares and $0.75 in cash per share, a 45% premium to Aurora's 30-day VWAP of $2.75, or 110% excluding Aurora's balance sheet cash.
Regulatory approvals and timing
The offer is unsolicited and subject to regulatory approvals and tender conditions. Aurora's board has recommended that shareholders reject it.
Market context
Curaleaf said it went public with the bid after several unsuccessful attempts to negotiate privately with Aurora's leadership.
