Aurora Cannabis Submits Proposal to CanniMed Therapeutics Board
2017-11-14 07:24:00 PM ET (CNW Group)
   
 
   
Aurora Cannabis Executes Lock-up Agreements with 38% of CanniMed Shareholders
At the request of IIROC, Aurora Cannabis Inc. (TSX: ACB) ("Aurora") announced today that it has submitted a proposal (the "Proposal") to acquire all of the issued and outstanding common shares of CanniMed Therapeutics Inc. (TSX: CMED) ("CanniMed"). The proposal was delivered to the Board of Directors of CanniMed on November 13, 2017 and Aurora is seeking to pursue a mutually agreed upon combination with CanniMed. CanniMed has not yet engaged in active discussions with Aurora, however, Aurora welcomes the opportunity to do so, such that CanniMed's shareholders can benefit from the significant inherent value in the Proposal. Aurora has requested that CanniMed's Board respond to the Proposal prior to 5:00 pm (Vancouver time) on Friday November 17, 2017, failing which, Aurora intends to commence a formal takeover bid for CanniMed.
Transaction Highlights
  
     --  All-share Proposal, valued at $24.00 per CanniMed share based
         on the closing share price of Aurora on November 14, 2017,
         reflects a 56.9% premium over the most recent closing price of
         CanniMed shares on November 14, 2017
     --  Irrevocable lock-up agreements with approximately 38% of
         CanniMed shareholders to vote in favour of Aurora's proposal or
         tender to Aurora's bid
     --  The combination would create a global leader in the cannabis
         industry with a pro-forma market capitalization exceeding $3.0
         billion
     --  Combined entity would serve approximately 40,000 active
         registered patients
     --  Aurora - CanniMed combined would benefit from enhanced capacity
         for future growth with greater access to capital and liquidity,
         with trading volumes amongst the highest in the cannabis
         industry