Management at Aurora this part Monday January 15th to approved 170M shares for the acquisition of Cannimed. Here is the link:
https://auroramj.com/special-meeting/notice-of-meeting.pdf " approving the issuance of up to 170,000,000 Common Shares of the Corporation (the“Aurora Shares”) to the holders (the“CanniMed Common Shareholders”) ofcommon shares (the“CanniMed Shares”) of CanniMed Therapeutics Inc.(“CanniMed”), in connection with the offer (the“Offer”) made by the Corporation to the CanniMedCommon Shareholders to purchaseall of the CanniM edShares, all as more particularly described in theInformation Circular. "
So Aurora is ready to come to the table with more shares than it originally called for. On November 24th, Terry Booth, CEO of Aurora stated a clear ratio under the "Terms of the offer" "The offer will provide holders of CanniMed shares with 4.52586207 Aurora shares for each CanniMed share"
| 2017-11-24 07:41 | CMED | CanniMed Therapeutics Inc | 20.65 | News Release | Aurora Cannabis launches hostile bid for CanniMed |
Someone posted an important fact last night, there are only 24.43 M shares of CMED issued so under the November Aurora stated ratio, that means CMED 24.43M*4.52586207= 110.56M ACB needed for an all-share transaction for CMED.
So why the "up to 170M shares"? well that because they need to sweeten the deal to attract both management and the 66.6% of CMED holders to the table. Aurora is very intelligent, they know for acquisitions, they need to "step up" and have positioned themselves with the ability to do so.
It seems the Globe and Mail is already calling for the deal to be sweeten
| 2018-01-19 06:44 | ACB | Aurora Cannabis Inc | 12.97 | In the News | Globe says Aurora to sweeten offer for CanniMed |
Assuming they do the full 170M new ACB shares for the existing CMED 24.43M shares, that means CMED gets 6.96 ACB shares for each CMED shares.
And it might be the type of offer Aurora makes that is "too good to pass up". So although it's clear the CEO of Cannimed, Brent Zettl wants to stay on, he might be willing to just take the shares and step aside, or better yet, continue to head the Pharma division focussed on producing leading CanniMed Oils which already has tens of thousands of users as patients. Translate that to recreational and the olive oil based products could be a market hit on the recreational side.
And let's not forget that Aurora recently sold $200M worth of debentitures to raise cash for acquisitions. So this previous "all in share" transaction offer might morph into the very common shares plus cash typically seen in acquisitions. That allows investors on the CMED side to pull money out without depressing the share prices post-merger.
| 2018-01-05 08:03 | ACB | Aurora Cannabis Inc | 13.04 | News Release | Aurora Cannabis to raise $200-million in bought deal |
So Aurora is coming to the negociation table with cash and shares ready to deal with Cannimed. This is a very exciting time for the whole sector. If they complete the deal Aurora become #1 and overtakes Canopy Growth as the market cap leader.