Marijuana companies reach $1.1B friendly takeover deal

Aurora Cannabis Inc. has struck a friendly deal valued at $1.1 billion to buy rival licensed producer CanniMed Therapeutics Inc., bringing an end to a hostile takeover battle between the marijuana companies.

Under the agreement, Aurora has agreed to pay $43 per share in stock and cash for each CanniMed share.

CanniMed Therapeutics to hold talks with Aurora Cannabis

That’s up from its earlier hostile offer of $24 per share for the company that Aurora had made late last year.

The new offer and the transaction are subject to customary closing conditions, including Competition Act approval.

The deal also means Saskatoon-based CanniMed will abandon its plans to acquire Newstrike Resources Ltd.

CanniMed will pay a $9.5-million break fee to Newstrike as a result of its decision.

© 2018 Global News, a division of Corus Entertainment Inc.

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