Aurora-CanniMed takeover battle goes before provincial regulators

TORONTO — An acrimonious takeover battle between two Canadian marijuana companies was in the regulatory spotlight Wednesday at a joint hearing involving the Saskatchewan and Ontario securities commissions.

Lawyers for both provincial regulators argued that Aurora Cannabis’ request to lessen the consideration period for its all-stock offer be rejected but that CanniMed Therapeutics shareholders’ rights plan to push back against its suitor be removed.

Kate McGrann, a lawyer representing staff at both the Ontario Securities Commission and the Financial and Consumer Affairs Authority of Saskatchewan, also told commissioners at the joint hearing that Aurora (TSX:ACB) should be able to buy up to five per cent of CanniMed’s outstanding shares on the open market.

Wednesday’s hearing in Toronto kicking off the joint proceedings comes roughly one month after Aurora launched an all-stock, unsolicited bid to acquire Saskatoon-based CanniMed, one of the first licensed marijuana producers in Canada, after both companies called on regulators to intervene.

CanniMed has said that Aurora’s offer is inferior to its own proposed acquisition of the Tragically Hip-backed Newstrike Resources (TSXV:HIP), and launched a shareholders’ rights plan to push back.

CanniMed has alleged that Edmonton-based Aurora worked jointly with some of its shareholders and Aurora has disputed this, while launching a dissident circular in a bid to thwart the Newstrike acquisition.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

46 new COVID-19 cases reported Wednesday in Alberta

Province has completed more than 500,000 COVID-19 tests

Red Deer RCMP downtown detachment to reopen front counter service

Police say new health protection measures will be in place

Two suspects arrested in connection to Parkland Mall shooting

Two suspects connected to the June 30 shooting at Parkland Mall have… Continue reading

High unemployment, $343B deficit projected in Liberals’ fiscal snapshot

Slow economic growth forecast until at least the end of 2021

Focus returns to Red Deer hospital’s expansion

Recommendations for project must be finalized

`A hot mess’: Americans face testing delays as virus surges

`A hot mess’: Americans face testing delays as virus surges

Feds charge Florida man, sons with selling fake virus cure

Feds charge Florida man, sons with selling fake virus cure

Three patients dead: Edmonton hospital declares full COVID-19 outbreak

Three patients dead: Edmonton hospital declares full COVID-19 outbreak

Canada’s chief medical officers plan some downtime after months of hard work

Canada’s chief medical officers plan some downtime after months of hard work

Feds promise recovery will focus on people hurt most by COVID-19 economic crisis

Feds promise recovery will focus on people hurt most by COVID-19 economic crisis

Liberals foresee high unemployment, $343 billion deficit due to COVID-19

Liberals foresee high unemployment, $343 billion deficit due to COVID-19

Biden-Sanders task forces unveil joint goals for party unity

Biden-Sanders task forces unveil joint goals for party unity

Oxfam: Pandemic pushing millions to brink of starvation

Oxfam: Pandemic pushing millions to brink of starvation

Most Read