Curaleaf sweetens Aurora Cannabis takeover offer after past rejection
Curaleaf says it's boosting its bid despite Aurora rebuffing past overtures because it wants to signal good faith negotiations and show it's worth combining the businesses.
Curaleaf Holdings Inc., the Stamford, Conn.-based cannabis company, has announced it will increase its offer for Aurora Cannabis Inc. The new proposal values Aurora at US$5 per share, which is higher than Curaleaf's previous bid of US$4 per share. The new offer consists of 0.4013 Curaleaf shares and US$1 cash. Despite Aurora's previous rejection of Curaleaf's overtures, the company is now attempting to negotiate in good faith and believes the merger would be beneficial for both businesses.
Curaleaf's earlier bid included 0.3463 of a Curaleaf subordinate voting share and 75 cents in cash. However, Aurora urged shareholders to reject the initial hostile takeover bid, arguing it undervalued Aurora and was not in shareholders' best interests. The company's CEO, Miguel Martin, stated that Curaleaf's latest announcement does not constitute a formal revised bid and that Aurora will evaluate any formal revised offer once received.
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