Aurora Cannabis agreed to an acquisition by Organigram Global at C$7.80 ($5.57) per share. The transaction values Aurora's equity at approximately C$561 million. Benzinga Pro data showed Aurora shares trading at $5.05 on Tuesday at publication, a gain of 19.67% following the takeover agreement.
Aurora shareholders can receive the entire payment in cash or exchange each Aurora share for 5.8626 Organigram shares. A third option provides C$3.75 in cash plus 3.0431 Organigram shares for each Aurora share. The offer represents a 93% premium to Aurora's August 10 share price, the last full trading session before Curaleaf announced the hostile proposal. The offer also exceeds Curaleaf's current bid by 21%; Curaleaf last revised that bid on October 6. Aurora's board rejected Curaleaf's bid unanimously. Aurora's board considers Organigram's proposal superior for shareholders and advises shareholders against tendering shares to Curaleaf.
The Canadian cannabis companies say the combined business would operate five EU-GMP-certified sites. The companies say the combined business would have leading positions in Canada, Europe and Australia. The companies anticipate synergies exceeding C$50 million. Aurora shareholders would have approximately 35% of the combined business's economic ownership after completion. Aurora shareholders would control 42% of voting rights. Organigram CEO James Yamanaka described the transaction as a "defining step" in Organigram's strategy.
British American Tobacco, Organigram's cornerstone shareholder, will purchase about C$187.5 million in newly issued Organigram shares at C$1.33 per share. The investment will help fund the cash consideration.
The acquisition requires support from two-thirds of votes cast by Aurora shareholders. A majority of Aurora holders excluding certain insiders must also approve the transaction. Organigram shareholders must also vote on the acquisition. British American Tobacco has committed Organigram voting rights totaling 30% in favor, although those votes are excluded from that count. Both shareholder meetings are expected in December. The transaction still needs court and regulatory approvals. The companies anticipate completing the acquisition in January 2027.
Aurora Cannabis Agrees to C$561M Acquisition by Organigram at 93% Premium
BenzingaShare
Summary
Aurora Cannabis (NASDAQ:ACB) has accepted a C$561 million takeover offer from Organigram Global at C$7.80 per share, a 93% premium to its August 10 price. Shareholders can choose cash, stock, or a mix. Aurora’s board passed on a Curaleaf bid, favoring Organigram’s terms. The merged firm will run five EU-GMP-certified sites and target top positions in Canada, Europe, and Australia. The deal needs shareholder and regulatory approvals and is set to close in January 2027. Amid shifting global crypto policy, the cannabis sector continues to attract cross-industry attention.
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