Curaleaf seeks to halt Aurora Cannabis share sales during takeover bid

Curaleaf Holdings has filed an application with the Alberta Securities Commission to halt Aurora Cannabis from issuing shares through its at-the-market program while Curaleaf’s takeover bid remains outstanding. Curaleaf is seeking an expedited hearing to stop further issuances, arguing that the sales act as an improper defensive tactic by Aurora management.

Curaleaf alleges that since expressing interest in a transaction in June, Aurora has issued approximately 2.81 million shares at an average price of US$3.04. According to Curaleaf, these issuances have diluted Aurora shareholders by about 4.9% during that period and increased the total cost required to complete the takeover offer by more than US$11 million. The company notes that total dilution since the program began in February is approximately 10.8%.

Curaleaf Chairman and CEO Boris Jordan stated that the issuances erode shareholder value and make it more difficult for investors to reach the acceptance thresholds required for the offer to succeed. Curaleaf’s bid to acquire all outstanding Aurora shares was detailed in an offer dated August 18.