Re: HIP would be beneficial from Aurora takeover of CMED Based on the terms described below, HIP holders will be benefited as their number os shares will increase by 4.5 times from HIP = CMED = ACB.
AURORA’s Terms of the Offer
The Offer will provide holders of CanniMed Shares with 4.52586207 Aurora Shares for each CanniMed Share, subject to a maximum of $24.00 (the "Cap Price") in Aurora Shares. If, on the earlier of the expiry time of the Offer and the date on which all conditions to the Offer have been satisfied, the 20-day volume weighted average price (the "Calculation Date VWAP") of Aurora Shares traded on the TSX is greater than $5.30 per Aurora Share, the number of Aurora Shares that a holder of CanniMed Shares will receive will be calculated by dividing the Cap Price of $24.00 by the Calculation Date VWAP.
The Offer will be remain open for acceptance until 11:59 p.m. (Pacific time) on March 9, 2018. Subject to applicable securities laws, the deposit period may be extended, or in certain circumstances reduced, by Aurora. In light of CanniMed's proposed alternative transaction with Newstrike Resources Ltd. (the "Newstrike Resources Alternative Transaction"), Aurora has applied to the Financial and Consumer Affairs Authority of Saskatchewan and the Ontario Securities Commission to obtain an order reducing the minimum deposit period for the Offer in order to allow CanniMed's shareholders to consider the Offer concurrently with the Newstrike Resources Alternative Transaction. CanniMed shareholders are advised, however, that there is no assurance such relief will be obtained.