English
Curaleaf Holdings Inc. has raised its takeover offer for Aurora Cannabis Inc., sweetening its bid after Aurora rejected its earlier approach. The Connecticut-based cannabis company now proposes to pay US$5 per Aurora share, up from its previous offer of US$4 per share made over the summer.
Details of the Revised Offer
The new Curaleaf bid consists of 0.4013 Curaleaf shares plus US$1 in cash per Aurora share. This valuation is based on Curaleaf’s closing share price on October 2. The earlier summer offer had included 0.3463 of a Curaleaf subordinate voting share plus 75 cents US in cash, calculated using the August 10 closing price.
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Curaleaf says it raised its offer despite Aurora’s repeated rejections. The company wants to demonstrate good faith and make a clear case for combining the two cannabis businesses. Stamford, Connecticut-based Curaleaf believes a merger would create meaningful value for shareholders on both sides.
Aurora Stands Firm on Evaluation Process
Aurora, headquartered in Edmonton, Alberta, had previously urged its shareholders to reject Curaleaf’s initial hostile takeover bid. The Edmonton-based company argued the original offer undervalued Aurora and did not serve the best interests of its shareholders.
Aurora CEO Miguel Martin responded cautiously to the latest announcement. “Today’s announcement by Curaleaf is not a formal revised bid, and Aurora has not yet received the materials required to conduct a full and proper evaluation,” Martin said in a news release. He added that while the announcement appears to address concerns Aurora raised about the initial hostile bid, the company’s special committee of independent directors will review any formal revised offer once received. Martin confirmed the committee would apply the same rigorous, independent and disciplined process used previously.
What Comes Next
Aurora has not formally accepted or rejected the revised proposal. The company is waiting to receive the required documentation before its special committee can conduct a thorough review. Until then, the latest Curaleaf bid remains an expression of intent rather than a binding formal offer.
The renewed push by Curaleaf to acquire Aurora signals continued consolidation pressure within the cannabis sector. However, Aurora’s measured response suggests the Edmonton company is in no rush to accept terms without a full and independent assessment of any formal proposal.
