Aurora Cannabis urges shareholders to reject Curaleaf takeover bid

Aurora Cannabis has announced that its board of directors unanimously recommends that shareholders reject a hostile takeover bid from Curaleaf Holdings. The board, supported by a special committee of independent directors, argues that the unsolicited offer significantly undervalues the company and poses financial and governance risks to investors.

Aurora Executive Chairman and CEO Miguel Martin stated that the transaction would be “harmful to Aurora shareholders as the hostile bid is inadequate.” The company highlighted a stark contrast in financial health, noting that Aurora is debt-free with approximately $149 million in cash and cash equivalents as of June 30, whereas Curaleaf carries over $1 billion in debt and other financial obligations.

Furthermore, Aurora expressed concerns regarding voting power in a potential combined entity. Under the proposed exchange ratio, Aurora shareholders would own roughly 7.7% of the combined company but would hold only about 3.2% of the voting power due to Curaleaf’s multi-voting share structure. The board is encouraging shareholders who have already tendered their shares to withdraw them.