Aurora Cannabis Inc. is taking further steps to convince CanniMed Therapeutics Inc. shareholders that the proposed acquisition of Newstrike Resources Ltd. is a “terrible deal” compared to its own hostile bid of the Saskatoon-based medical marijuana producer.
Aurora (TSX: ACB) plans to file a dissident circular and will solicit votes against CanniMed’s resolution to issue shares in connection with its proposed acquisition of the Tragically-Hip backed Newstrike (TSXV:HIP).
Vancouver-headquartered Aurora argues that CanniMed (TSX:CMED) is Newstrike’s “last lifeline” and a significant portion of its capacity is unfunded.
Last month, Aurora launched an all-stock takeover bid for CanniMed, with one of its conditions being that CanniMed abandon its own proposed deal for Toronto-based Newstrike.
CanniMed has said its plan to acquire Newstrike is the better plan and alleges that Aurora has launched an “insider bid” working jointly and in concert with some of its shareholders.
Both CanniMed and Aurora have called on regulators to intervene, with a hearing scheduled for Wednesday.