Organigram Global Inc. has signed a deal to acquire Aurora Cannabis Inc. for $561 million, following a previous hostile takeover attempt by Curaleaf Holdings Inc.
Organigram Global Inc. has signed a deal to acquire Aurora Cannabis Inc. in an agreement that values the company at $561 million. The transaction has received unanimous support from the boards of directors at both firms.
Under the terms of the offer, Aurora shareholders have the option to receive one of the following:
The total cash available is capped at $253.6 million, and the number of shares available under the offer is limited to 205.8 million. The companies stated the deal represents a 93 per cent premium to Aurora’s share price as of Aug. 10 and a 21 per cent premium to the implied value of the Curaleaf offer, which was amended on Oct. 6.
Organigram CEO James Yamanaka said the transaction is a defining step in the company’s strategy to build a disciplined, global cannabis leader. "By bringing together Aurora’s established global medical cannabis platform with our Canadian operations and growing international footprint, we are creating a larger, stronger, and more diversified company," Yamanaka said in a news release Tuesday.
Aurora executive chair and CEO Miguel Martin stated that combining with Organigram will "accelerate Aurora’s international growth strategy by strengthening commercial execution, expanding our product and (research and development) capabilities, and extending our global operating network."
The companies expect the deal to create more than $50 million in synergies from factors including procurement scale and cross-selling. The deal is expected to close in January 2027, subject to regulatory approvals, shareholder approval, and permission from the Supreme Court of British Columbia.
The deal follows a hostile offer for Aurora made by Curaleaf Holdings Inc. earlier this year. In August, Curaleaf took its offer directly to shareholders after stating that Aurora’s board refused to engage in discussions. In September, Aurora urged shareholders to reject that bid, stating it undervalued the company.
Curaleaf issued a statement Tuesday evening noting that its enhanced Oct. 6 bid for Aurora remains outstanding. "Curaleaf believes its offer represents better value, offering a superior combined business with a stronger capital markets profile, greater certainty and speed to close, and greater anticipated synergies," the company said.
Curaleaf also stated it will study the Organigram transaction and is awaiting disclosure of material details, including "any break fee, management and board composition going forward, and any investor rights being granted to BAT."
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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