The Globe and Mail reports in its Thursday, Jan. 4, edition that CanniMed Therapeutics ($26.13) recommends shareholders reject Aurora Cannabis's ($13.04) hostile takeover bid. A Canadian Press dispatch to The Globe reports
that CanniMed says its shares are trading above Aurora's offer of $24 and would likely be higher if it were not for the all-stock hostile bid.
CanniMed says Aurora is 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 of Tragically Hip-backed Newstrike Resources (93 cents).
CanniMed says: "The combination of CanniMed and Newstrike creates a major player across the Canadian recreational and global medical markets and will be valued as such. We see a clear path to $37 per CanniMed share -- or more."
Aurora formally launched its hostile takeover bid for CanniMed in late November on the condition that CanniMed cancel its own planned acquisition and says its offer will remain on the table until March 9. The Ontario Securities Commission ruled on Dec. 22 that any securities issued by CanniMed as a defence against a hostile takeover by Aurora will be cease-traded.
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