Shareholders of Newstrike Resources Ltd. (TSXV:HIP) voted overwhelmingly in favour of an acquisition by licensed cannabis producer CanniMed Therapeutics Inc. (TSX:CMED) at a special meeting Wednesday.
Approximately 99.4 per cent of the votes, representing more than 271.8 million outstanding common shares, were cast in support of a plan that would see Newstrike shareholders receive 33 CanniMed shares for each 1,000 shares of Newstrike.
The Tragically Hip, a major shareholder in Newstrike, last week threw its support behind the company’s friendly takeover by Saskatoon-based CanniMed.
However, the deal, which CanniMed said better positions the company for entry into the recreational cannabis market, is subject to approval from CanniMed shareholders at a special meeting scheduled for Jan. 23.
The final outcome of that deal remains uncertain, as CanniMed is also the target of an all-stock hostile takeover by Edmonton-based Aurora Cannabis (TSX:ACB) that is conditional on abandoning the Newstrike deal.
CanniMed has urged its shareholders to vote in favour of Newstrike, but three of the Saskatoon-based company’s biggest shareholders representing 38 per cent of outstanding shares have signed lock-up agreements backing Aurora’s bid.