CanniMed Therapeutics Inc. (TSX: CMED) (OTC: CMMDF) is a solid company with a market cap. of roughly $717.453 million that has seen its share value jump up nicely getting close to its highs from earlier in the year after Aurora Cannabis Inc. made clear its intention to acquire the company. Another cultivator that producers medical marijuana flower and extracts out of Saskatchewan, CanniMed held at its 50 dma on the recent decline that hit the entire cannabis sector during the beginning of February.
Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) (Frankfurt: 21P; WKN: A1C4WM) has a market cap of roughly $4.225 billion and is Canopy’s biggest competition. They have just received permission from Canada’s Competition Bureau to buy up the rest of the shares for CanniMed Therapeutics Inc. that will complete its acquisition. The acquisition will expand its production and distribution capacity as Aurora’s headquaarters are located near Vancouver on Canada’s west coast. Like Canopy, Aurora is trying to get itself well positioned for recreational sales in Canada sometime later this year.
“This approval means we can move ahead with this acquisition and begin the integration of CanniMed into Aurora shortly thereafter, led by our recently-appointed VP Business Integration, André Jérôme, and execute quickly on realizing the strategic synergies we have identified,” said Terry Booth, CEO. “One of the key considerations behind this acquisition is the formation of our new Medical Cannabis Centre of Excellence, for which CanniMed will be the cornerstone. The combination is expected to result in a corporate group with over 40,000 patients, over 260,000 kg per annum in funded capacity, a very strong international presence, highly visible brands, and a broad offering that resonates well with our markets. We now look forward to connecting with our new colleagues, and enter the next phase of growth for both companies.”
Aurora encourages CanniMed shareholders to read the full details of the Offer set forth in its original offer and takeover bid circular dated November 24, 2017 (as amended by its notice of change dated January 12, 2018), the Notice of Variation and accompanying offer documents (collectively, the “Offer Documents”), which contain detailed instructions on how CanniMed shareholders can tender their CanniMed common shares to the Offer. For assistance in depositing CanniMed common shares to the Offer, CanniMed shareholders should contact the Depository and Information Agent for the Offer, Laurel Hill Advisory Group at Phone: 1-877-452-7184 (North American Toll Free Phone) and 1-416-304-0211 (Outside North America); Facsimile: 416-646-2415; and E-mail: firstname.lastname@example.org.