On February 28, 2018, Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) announced that it had received a No Action Letter from the Competition Bureau (Canada) regarding its offer to purchase all of the issued and outstanding common shares of CanniMed Therapeutics Inc. (CSE: CMED) that it does not already own. The No Action Letter effectively gives the green light to the planned merger.
One of the key considerations behind this acquisition was the formation of the new Medical Cannabis Centre of Excellence, for which CanniMed would be the cornerstone. The merger is expected to result in a corporate group with over 40,000 patients and more than 260,000 kg per year in cannabis sales as well as a strong international presence, highly visible brands, and a more diverse offering of products and services. One of the key benefits for CanniMed’s patients is that they will now have access to the e-commerce platform of Aurora which will provide them with a simple and consumer-friendly online purchasing option.
Aurora agreed to pay CanniMed C$43 per share in stock and cash (valued at a total of approximately C$1.1 billion). Owners of shares in CanniMed will receive either 3.4 Aurora shares for each CanniMed share they hold, or a combination of shares and cash.
Aurora’s wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of Canadian medical cannabis pursuant to the ACMPR with over 95,000 square feet in current indoor production and an additional 800,000 square feet under license. Aurora also owns Berlin-based Pedanios, the leading wholesale importer, exporter, and distributor of medical cannabis in the European Union as well as BC Northern Lights Ltd. and Urban Cultivator Inc. Aurora has additional holdings in companies dedicated to distribution and production.