Aurora Cannabis Inc. has struck a friendly deal valued at US$1.1 billion to buy rival licensed producer CanniMed Therapeutics Inc., ending a hostile takeover battle between the Canadian marijuana companies.
“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,” Aurora chief executive Terry Booth said.
“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 takeover comes amid a wave of consolidation in Canada’s burgeoning marijuana sector as companies seek to gain market share before sales become legal by July.
Full Content: Bloomberg