ABCN
The timing of the deal is important, as Aurora has said its offer is conditional on the latter dropping its planned acquisition of Newstrike, slamming it as “a terrible deal” for CanniMed shareholders.
Aurora shareholders are set to meet for a vote on whether to issue shares related to the takeover offer on Jan. 15. Newstrike and CanniMed are scheduled to hold their decisive meetings regarding their deal on Jan. 17 and Jan. 23, respectively.
“The next step is for CanniMed shareholders to vote against the proposed acquisition by CanniMed of Newstrike Resources,” said Terry Booth, chief executive of Aurora, in a Wednesday press release.
The OSC struck down CanniMed’s poison pill as well, ordering that “all trading shall cease in respect of any securities issued, or that are proposed to be issued, in connection with the Shareholder Rights Plan.”
CanniMed’s special committee had also asked, and was denied by, the OSC for an order that would exclude the shares of the locked-up shareholders from the 50 per cent of CanniMed shares that Aurora needs to approve its bid. An order to block Aurora from buying up to five per cent of CanniMed’s shares on the open market during its takeover bid was rejected as well.
Keeping Abcann Global Corp (ABCN.V) on Close Watch As Shares Move