When we last checked in with AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) just a couple of weeks ago, we talked about the Letter of Intent (LOI) the company signed with the Société des Alcools du Québec (SAQ) to supply a minimum of 5,000 kg of cannabis per year for the Quebec adult consumer market, once legalized in July.
This week, we wanted to swing back around to touch base with the company, which has long been one of our favorite Canadian cannabis stocks, to relay a couple of key updates that have come down the wires this week. The first of which is regarding the takeover of CanniMed, a story we have followed closely. The CanniMed board initially tried to block Aurora from taking over, but we’ve now learned that court rulings have paved the way for the completion of the acquisition.
AURORA CANNABIS IN COM NPV (OTCMKTS:ACBFF) received a No Action Letter from the Competition Bureau (Canada) regarding its offer to purchase all of the issued and outstanding common shares of CanniMed Therapeutics Inc. that it does not already own.
As outlined in Aurora’s notice of variation dated February 5, 2018, approval under the Competition Act (Canada) represented the final regulatory approval required before Aurora could begin its take-up of CanniMed Shares under the Offer.
Aurora intends to begin its take-up of CanniMed Shares once sufficient CanniMed Shares have been deposited under the offer to meet the minimum tender condition of 66 2/3% of the issued and outstanding CanniMed Shares, calculated on a fully diluted basis. To date, 40% of CanniMed’s outstanding shares have been deposited to the Offer, with a number of additional CanniMed Shareholders advising Aurora they have been waiting for Aurora to clear regulatory approvals before tendering to the Offer.
“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.” (Source: Canada Newswire)
In other news, the Company has entered into an agreement to become a medical cannabis supplier to Shoppers Drug Mart. Subject to Health Canada’s approval of Shoppers Drug Mart’s application to be a licensed producer, under the terms of the agreement the Company will supply Shoppers Drug Mart with Aurora branded medical cannabis products. It is expected the products will be sold online, as Canadian regulations currently restrict the sale of medical cannabis in retail pharmacies. (Source: Canada Newswire)
It truly has been a busy week for Aurora, which has seen very important progress on two storylines that we have been continuously following for many months. We won’t stop now, especially with Canadian cannabis legalization, which is sure to send market sector visibility through the roof, just four short months away. We’ll stay up on any further developments with ACBFF and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free small cap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ACBFF stock, short or long.