Leading advisory firm ISS backs CanniMed Therapeutics acquisition of Newstrike

SASKATOON — CanniMed Therapeutics Inc. says a leading independent advisory firm has recommended its shareholders vote in favour of its proposed acquisition of Newstrike Resources Ltd., a deal that hostile suitor Aurora Cannabis Inc. wants quashed.

Institutional Shareholder Services Inc. says that acquiring Toronto-based Newstrike (TSXV:HIP) would allow Saskatoon-based CanniMed (TSX:CMED) to access the recreational cannabis market while also significantly expanding its production capacity and diversifying its geographic footprint.

The advisory firm also says that Aurora’s all-stock hostile takeover bid for CanniMed, capped at a $24 per share offer, has effectively halved the exchange ratio and CanniMed’s expected ownership stake in the combined entity.

Aurora (TSX:ACB) formally launched its hostile takeover bid for CanniMed in late November on the condition that CanniMed cancel its acquisition of Newstrike and said its offer will remain on the table until March 9.

CanniMed said earlier this month that Aurora was offering shares that were worth only half as much just two weeks before its hostile bid was announced last fall and that it is inferior to its own proposed acquisition.

CanniMed shareholders vote on the proposed acquisition of Newstrike on Jan. 19.

Just Posted

Growing drug-fuelled emergencies at Red Deer’s Buffalo transitional housing complex

City council approves two additional mental health staffers at complex

Equalization protests from Alberta likely pre-election talk: Quebec minister

OTTAWA — Quebec’s finance minister brushed off complaints from Alberta on Monday… Continue reading

Car thefts on rise in Canada as thieves target trucks, SUVs: insurance board

TORONTO — A new report says choosy car thieves are setting their… Continue reading

Fenced-off SCS site development approved by Red Deer city council for seven years

‘Sunset clause’ means a new permit will be needed in 2025

Bystanders help Innisfail Mountie make arrest

A 35-year-old Ottawa man is facing a number of charges including resisting arrest

Orlando SC acquires Canadian Tesho Akindele in trade with FC Dallas for cash

ORLANDO, Fla. — Canadian forward Tesho Akindele was traded to Orlando City… Continue reading

Koskinen notches third shutout, McDavid gets winner as Oilers blank Flames 1-0

EDMONTON — The Edmonton Oilers appear to have shored up their defence… Continue reading

Beyonce performs at pre-wedding party in India

Beyonce brought her star power to a pre-wedding party for the daughter… Continue reading

Kirk Douglas celebrates 102nd birthday

LOS ANGELES — Actor Kirk Douglas got to celebrate his 102nd birthday… Continue reading

Ellen Page steps up attack on Nova Scotia pulp mill’s effluent pipeline

HALIFAX — Hollywood actor Ellen Page is doubling down on her criticism… Continue reading

Pence aide out of running to be Trump’s next chief of staff

WASHINGTON — President Donald Trump’s top pick to replace chief of staff… Continue reading

Swath of South faces wintry mess: Snow, sleet, freezing rain

CHARLOTTE, N.C. — A massive storm brought snow, sleet, and freezing rain… Continue reading

‘I killed my best friend’: Opioids’ fatal grip on mayor, pal

MOUNT CARBON, Pa. — Janel Firestone found her son — the 24-year-old,… Continue reading

Most Read