02:34:56 EDT Fri 29 May 2020
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Aurora Cannabis Inc
Symbol ACB
Shares Issued 452,733,103
Close 2018-01-09 C$ 13.63
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Globe says Aurora's hostile bid imperiled by pot rally

2018-01-10 07:54 ET - In the News

Also In the News (C-CMED) CanniMed Therapeutics Inc
Also In the News (C-HIP) Newstrike Resources Ltd

The Globe and Mail reports in its Wednesday edition that the frenzied run-up in marijuana stocks is threatening takeover deals. The Globe's Christina Pellegrini writes that Aurora's hostile bid for CanniMed, and CanniMed's friendly deal to acquire Newstrike -- both all-stock proposals -- could get blown off course in their late stages by sharp gains in the targets' shares. CanniMed's stock settled on Tuesday at 11 per cent above a $24-a-share exchange limit proposed by Aurora. Because of that cap, CanniMed shareholders would get fewer Aurora shares for each of their own holdings than first proposed, and miss out on much of the recent rally that has seen Aurora's share price more than double. In the case of Newstrike, its stock has soared close to 330 per cent over the past five trading days and was halted twice on Tuesday amid the volatility. The tiny company's market capitalization, at more than $1-billion, is now almost double that of CanniMed's. The exchange ratio -- 1,000 shares of Newstrike for 33 of CanniMed's -- is fixed, so investors can currently sell their holdings into the market at more than twice the bid value. Experts say suitors may have to start sweetening offers with cash to get deals done.

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