After an acrimonious, months-long takeover battle, Aurora Cannabis Inc. has struck a friendly deal valued at $1.1 billion to buy rival licensed producer CanniMed Therapeutics Inc., marking the biggest deal yet in Canada?s marijuana sector.
The agreement announced Wednesday comes after executives at both companies traded harsh public criticism and CanniMed filed a lawsuit against its suitor, alleging it conspired to harm its economic interests.
But following long days of negotiation after entering talks last week, the two rivals were able to agree on a deal that now includes both shares and cash, a sweeter deal than the earlier all-stock transaction offered in November.
Shares in CanniMed were up 16 per cent by midmorning after shooting up 22 per cent directly after the news. Aurora was up half a per cent. Newstrike, which was left out of the deal, had its shares halted. The stock fell 20 per cent when trading resumed.
"We are very pleased to have come to terms with CanniMed on this powerful strategic combination that will establish a best-in-class cannabis company with operations across Canada and around the world," Aurora chief executive Terry Booth said in a statement.
