Aurora Cannabis Urges Shareholders To Reject Hostile Takeover Offer By Curaleaf
- Aurora Cannabis urges shareholders to reject Curaleaf's hostile takeover bid, claiming it undervalues the company and is not in shareholders' best interests.
- Aurora highlights its strong financial position with no debt and approximately $149 million CAD in cash, contrasting with Curaleaf's over $1 billion CAD in debt.
- Aurora's CEO accuses Curaleaf of trying to use shareholders’ cash to finance the bid, acquire assets at a discount, and pass significant risks onto shareholders.
- Curaleaf expresses willingness to engage in constructive talks, but Aurora has reportedly refused to participate in meaningful negotiations.
Curaleaf says Aurora is refusing to engage in meaningful talks
Edmonton-based Aurora Cannabis Inc. is urging its shareholders to reject a hostile takeover bid by Curaleaf Holdings, Inc., saying the unsolicited offer undervalues Aurora and is not in the best interests of shareholders.
Aurora says it is debt free and has about $149 million Cdn in cash, while Curaleaf has over $1 billion Cdn 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.
In response, Curaleaf chairman and chief executive Boris Jordan says he is ready and willing to engage constructively with Aurora to discuss the proposal, but the company has continued to refuse to engage in meaningful talks.
Curaleaf made an offer for Aurora last month that it says is worth $4 US per Aurora share, including 0.3463 of a Curaleaf subordinate voting share, plus 75 cents US in cash, based on its closing share price on Aug. 10.
Read the full article at CBC News