Organigram Acquires Aurora Cannabis in $401M Deal

Organigram Global Inc. is set to acquire Aurora Cannabis Inc. in a deal worth about $401 million. The deal, announced Tuesday, effectively ends the hostile takeover bid of Aurora by Curaleaf Holdings, Inc.

Organigram will pay $5.57 a share for Aurora, representing a 93% premium to Aurora’s Unaffected Share Price on August 10 and a 21% premium to the implied value of the unsolicited Curaleaf hostile bid as of November 2.

In a statement, James Yamanaka, CEO of Organigram, called the deal “a defining step in Organigram’s strategy to build a disciplined, global cannabis leader.”

“By bringing together Aurora’s established global medical cannabis platform with our Canadian operations and growing international footprint, we are creating a larger, stronger, and more diversified company. We are excited to build on our complementary operations, expertise, capital resources, and cultures to accelerate growth, meet the growing global demand, and drive long-term profitable growth.” — Yamanaka in a press release

Miguel Martin, executive chairman and CEO of Aurora, said in a statement that “Combining with Organigram will accelerate Aurora’s international growth strategy by strengthening commercial execution, expanding our product and R&D capabilities, and extending our global operating network.”

“For Aurora’s shareholders, the transaction is the result of a robust strategic review process and delivers compelling value today, meaningful choice in how they receive it and the opportunity to participate in the future of a leading cannabis company,” he said in a press release.

Aurora shareholders are expected to hold approximately 35% pro forma economic ownership of the combined company on a fully diluted basis and 42% voting ownership.