Curaleaf launches formal takeover bid for Aurora Cannabis

Curaleaf has launched a formal, unsolicited takeover bid for Canadian cannabis company Aurora Cannabis. The offer consists of 0.3463 of a Curaleaf subordinate voting share plus US$0.75 in cash per Aurora share, representing an implied value of US$4.00 per share and capped at US$5.00.

Curaleaf Chairman and CEO Boris Jordan stated that the move aims to create a scaled global cannabis platform with increased exposure to the U.S. market by combining Curaleaf’s distribution with Aurora’s international medical cannabis franchise and manufacturing capacity. Curaleaf noted that it made the proposal public after attempting to solicit Aurora leadership privately, alleging that Aurora would not discuss the proposal in good faith.

Aurora’s Executive Chairman and CEO Miguel Martin has advised shareholders to take no action while a special committee of independent directors reviews the proposal. Aurora denied claims that it failed to engage in good faith, asserting that the company is focused on long-term value rather than short-term pressure. A formal recommendation from the board is expected within 15 days.