Curaleaf looks to buy Aurora Cannabis, takes bid directly to shareholders

Curaleaf Holdings Inc. has declared its intention to pursue a takeover of Edmonton-based Aurora Cannabis Inc. by making an offer directly to Aurora's shareholders. This move, if successful, would establish a combined cannabis entity with a presence in 17 nations across Europe, North America, and other international markets. Curaleaf revealed its public approach follows unsuccessful private negotiation attempts with Aurora's leadership. The company claims Aurora's board declined to discuss a formal letter of intent sent on June 23, and a subsequent letter on July 7, asserting Aurora has been "unwilling to engage in constructive discussions." Curaleaf CEO Boris Jordan expressed disappointment with the board's refusal to engage, stating the decision to approach shareholders directly is due to the "significant premium" and "compelling strategic rationale." He added that further delay is unjustified and that Curaleaf remains ready to finalize a deal quickly. In response, Aurora Cannabis issued a statement on Tuesday afternoon, refuting Curaleaf's assertion of refusal to engage. The company stated that its lead independent director had corresponded with Curaleaf's CEO, most recently on July 24, noting Aurora's focus on its business plan and indicating that dialogue was not discouraged. Aurora announced its board intends to form a special committee to evaluate Curaleaf's proposal and determine if it serves the best interests of the company and its stakeholders. The company advised its shareholders to take no action at this time, as no decision has been made regarding the proposal, and there is no guarantee a transaction will occur. Curaleaf's offer reportedly includes US$4.00 per share plus US$0.75 cash for each Aurora share.

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We were very disappointed that the board refused to meaningfully engage. We will now take our proposal directly to Aurora shareholders because the premium is significant, the strategic rationale is compelling, and further delay is unjustified.