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Aurora Cannabis Urges Shareholders to Reject Curaleaf’s Hostile Takeover
The Canadian producer says Curaleaf’s bid undervalues its assets and would shift risk onto Aurora shareholders.
Aurora Cannabis Inc. is asking shareholders to reject a hostile takeover bid from Curaleaf Holdings, Inc., arguing the offer undervalues the company and would use Aurora’s own cash to help finance the deal.
Aurora Cannabis Inc. is urging its shareholders to reject a hostile takeover bid announced last month by Curaleaf Holdings, Inc., according to The Canadian Press.
In a statement to shareholders, Aurora said it is debt-free and currently holds CA$149 million in cash, while Curaleaf has debts exceeding CA$1 billion.
Miguel Martin, Aurora’s CEO and executive chairman, said the takeover bid hopes to utilize Aurora shareholders’ own cash to help finance the deal and that the offer discounts Aurora’s assets.
Martin also said the takeover would shift the risks primarily onto shareholders.
Curaleaf chairman and chief executive Boris Jordan said he is ready and willing to discuss the merger but that Aurora has so far declined to engage meaningfully with the proposal.
Curaleaf announced its hostile takeover intentions for Aurora last month, offering cash and Curaleaf stock valued at $4 per Aurora share.