CanniMed adopts shareholder rights plan in takeover fight with Aurora Cannabis
Plan prevents Aurora from acquiring any CanniMed shares other than those tendered to its hostile bid
CanniMed Therapeutics Inc. says it has adopted a shareholder rights plan in a bid to defend itself against a hostile takeover offer by Aurora Cannabis Inc.
The company says the move will ensure its shareholders have a chance to vote on its own acquisition of Newstrike Resources Ltd.
The rights plan prevents Aurora from acquiring any CanniMed shares other than those tendered to its hostile bid or from entering into any lock-up agreements other than those it has already signed and filed, CanniMed says.
Aurora has made an all-stock offer for CanniMed worth up to $24 per share, with one of its conditions being that CanniMed abandon its own proposed acquisition of Newstrike.
Aurora has also said that it has signed lock-up agreements with four CanniMed shareholders — which comprise 38 per cent of outstanding shares — to support its unsolicited takeover bid.
CanniMed has said the Aurora acquisition does not make sense for its shareholders, but the combination with Newstrike will deliver significant shareholder value.