A U.S. cannabis company has expressed interest in acquiring Aurora Cannabis Inc., prompting the Edmonton-based firm to form a special committee to evaluate the unsolicited bid. Curaleaf Holdings Inc., based in Stamford, Conn., revealed its intention to purchase all shares of Aurora, with plans to create a combined cannabis entity operating in 17 countries worldwide.
Despite multiple private negotiation attempts, Aurora’s board has declined to engage with Curaleaf’s proposal, according to Curaleaf CEO Boris Jordan. The proposal involves offering Aurora shareholders $4 US per share along with $0.75 US cash for each share. Aurora acknowledged receiving letters from Curaleaf outlining the acquisition proposals but disputed Curaleaf’s claim that it refused to discuss the offer.
Aurora’s lead independent director has been in recent correspondence with Curaleaf’s CEO, expressing the company’s focus on executing its business plan while remaining open to ongoing discussions. The Canadian cannabis company will establish a special committee of independent directors to assess the bid’s alignment with stakeholders’ interests, cautioning that a deal is not guaranteed.
While recognizing Curaleaf’s interest as positive, TD Cowen analysts Derek Lessard and Ryan Neal believe that the proposed offer undervalues Aurora’s long-term potential. The analysts highlighted Aurora’s market leadership, quality product portfolio, strong financial position, and global regulatory expertise, suggesting that the company could deliver greater value over time.
Jordan emphasized the value of merging the companies, citing the opportunity to leverage Curaleaf’s global distribution network with Aurora’s medical cannabis franchise and production capabilities. The combined revenue of over $1.5 billion US in the past year and anticipated cost synergies of $40 million US annually further support the strategic rationale behind the proposed acquisition, aiming to benefit both Curaleaf and Aurora shareholders.