CanniMed Therapeutics Inc. says a leading independent advisory firm has recommended its shareholders vote in favour of its proposed acquisition of Newstrike Resources Ltd., a deal that hostile suitor Aurora Cannabis Inc. wants quashed.
Institutional Shareholder Services Inc. says that acquiring Toronto-based Newstrike (TSXV:HIP) would allow Saskatoon-based CanniMed (TSX:CMED) to access the recreational cannabis market while also significantly expanding its production capacity and diversifying its geographic footprint.
The advisory firm also says that Aurora’s all-stock hostile takeover bid for CanniMed, capped at a $24 per share offer, has effectively halved the exchange ratio and CanniMed’s expected ownership stake in the combined entity.
Aurora (TSX:ACB) formally launched its hostile takeover bid for CanniMed in late November on the condition that CanniMed cancel its acquisition of Newstrike and said its offer will remain on the table until March 9.
CanniMed said earlier this month that Aurora was offering shares that were worth only half as much just two weeks before its hostile bid was announced last fall and that it is inferior to its own proposed acquisition.
CanniMed shareholders vote on the proposed acquisition of Newstrike on Jan. 19.
- This is the Buds2Go Staff Account. We work really hard to provide information and news about marijuana legalization, product information and promotional events going on across Canada. We are fanatics and experts on strains and utilizing medical cannabis for the treatment of common ailments.
- News2018.10.19‘A 24/7 thing’: Ottawa police begin checkstop blitz to target cannabis-impaired drivers — even in the morning
- News2018.10.19Toronto police raid 5 marijuana dispensaries as retail locations still not permitted – Toronto
- News2018.10.19Former task force chair says everyone needs to obey the rules on legalized cannabis – New Brunswick
- News2018.10.16Halifax rolls out more designated smoking areas ahead of cannabis legalization – Halifax