Aurora Cannabis rises on Curaleaf takeover proposal
U.S.-listed shares of pot firm Aurora Cannabis ACB.O rose 17% to $3.34 in premarket trading.
The company said Curaleaf plans to launch a takeover bid offering $4 per share in cash and stock, a 45% premium to Aurora's average share price over the last 30 days.
The offer includes 0.3463 Curaleaf shares and $0.75 in cash for each Aurora share.
Curaleaf said the combination would create a cannabis company with operations in 17 countries and more than $1.5 billion in LTM revenue.
The company expects at least $40 million in annual cost savings from the deal.
Curaleaf CEO Boris Jordan said the company went public with the proposal after Aurora's board declined to engage.
As of the last close, the stock was down about 45% year to date.
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