Curaleaf Bids $4.00/Share for Aurora Cannabis
The proposed takeover values Aurora at a 45% premium to its 30-day volume-weighted average price, aiming to create a combined cannabis company with a footprint in 17 countries
Curaleaf has announced a takeover bid plan for Aurora Cannabis, offering $4.00 per share in cash and stock. This represents a 45% premium to Aurora's 30-day volume-weighted average price.
The proposed combination would create a cannabis company operating across 17 countries in Europe, North America, and other international markets. Curaleaf expects the combination to generate at least $40 million in annual cost synergies.
Aurora's board intends to form a special committee to consider Curaleaf's proposal and whether it's in the best interests of the company and all stakeholders. The combined company would have generated $1.5 billion in revenue and nearly $350 million in adjusted EBITDA over the trailing twelve months.
Aurora has more than 50 tons of annual EU-GMP cultivation and manufacturing capacity. Curaleaf sent a formal letter of intent to Aurora on June 23 outlining the proposal. Aurora's lead independent director corresponded with Curaleaf's CEO as recently as July 24 and did not discourage an ongoing dialogue between the parties going forward.
## Why it matters The takeover bid is significant as it would create one of the largest cannabis companies globally, with operations spanning multiple continents. The deal's success would depend on the approval of Aurora's shareholders and the special committee formed by the company's board. The proposed combination would aim to leverage the strengths of both companies, creating a more competitive entity in the global cannabis market.
The offer represents a 110% premium to Aurora's 30-day volume-weighted average price excluding the cash on Aurora's balance sheet. This indicates that Curaleaf is willing to pay a substantial premium to acquire Aurora and create a leading player in the cannabis industry.
