Aurora Cannabis surges on Organigram's higher takeover offer
OGI•Organigram agreed to acquire Aurora Cannabis for C$7.80 per share, valuing the company at about C$561 million. The offer is a 32.4% premium to Aurora's November 2 Toronto close and about 21% above Curaleaf's latest hostile bid.
1. Takeover offer
Organigram agreed to acquire Aurora Cannabis for C$7.80 per share, valuing the Canadian cannabis producer at about C$561 million ($400.77 million). The offer is a 32.4% premium to Aurora's November 2 Toronto close and about 21% higher than Curaleaf Holdings' latest hostile bid, which Aurora's board rejected.
2. Financing and timing
Aurora shareholders can receive cash, Organigram shares or a combination, and are expected to own about 35% of the combined company. British American Tobacco will invest C$187.5 million to help finance the deal; Organigram expects more than C$50 million in savings and additional revenue. Shareholder votes are expected in December, with closing targeted for January.
