A U.S. cannabis company has made a bid to acquire Aurora Cannabis Inc., prompting the Edmonton-based firm to set up a special committee to review the offer. Curaleaf Holdings Inc. announced its intention to purchase all shares of Aurora, aiming to create a global cannabis entity spanning 17 countries. Despite attempts to negotiate privately, Curaleaf decided to go public with its proposal after Aurora’s board declined to engage in discussions following the submission of formal letters of intent. Curaleaf proposed a payment of $4 US per share to Aurora shareholders, in addition to $0.75 US cash for each Aurora share.
Aurora confirmed the receipt of Curaleaf’s letters but disputed claims of refusing to consider the offer. The Canadian company indicated ongoing communication with Curaleaf’s CEO and announced the formation of a special committee to assess the proposal. While expressing interest in the bid, analysts suggested that the current offer undervalues Aurora’s potential in the long term. Jordan of Curaleaf emphasized the benefits of merging the companies, highlighting the synergies in global distribution and the prospect of significant cost savings. The proposed takeover aims to leverage the strengths of both entities for the mutual benefit of shareholders.