Aurora Cannabis Inc. ACB-T is urging its shareholders to reject a hostile takeover bid by Curaleaf Holdings Inc. CURA-T
The company says the unsolicited bid by Curaleaf undervalues Aurora and is not in the best interests of shareholders.
Aurora says it is debt free and has about $149-million in cash, while Curaleaf has more than $1-billion in debt and would gain control over its cash without paying fairly.
Miguel Martin, executive chairman and CEO of Aurora, says Curaleaf is attempting to use Aurora shareholders’ own cash to help finance the bid, acquire Aurora’s assets at a discount and shift material risks onto shareholders.
Canaleaf made an offer for Aurora last month that it says is worth US$4 per Aurora share including 0.3463 of a Curaleaf subordinate voting share plus US75 cents in cash, based on its closing share price on Aug. 10.
Aurora shares closed down 3 cents at $5.60 on the Toronto Stock Exchange on Tuesday.