Curaleaf Urges Aurora Shareholders To Back Bid, Seeks Halt To ATM Program
(RTTNews) - Curaleaf Holdings Inc. (CURLF) urged Aurora Cannabis Inc. (ACB.TO) shareholders to support its takeover offer. Further, Curaleaf has asked the Alberta Securities Commission or ASC to halt Aurora's at-the-market or ATM share issuance program while the offer remains pending.
In a letter, issued on Tuesday, Curaleaf called on Aurora shareholders to tender their shares under its offer, which provides 0.3463 Curaleaf shares and C$0.75 in cash for each Aurora share. Curaleaf said the offer represents a premium to Aurora's unaffected share price before the takeover proposal was announced.
The letter follows Curaleaf's September 14 application to the ASC seeking an order to stop Aurora from issuing additional shares through its ATM program during the pending offer. Curaleaf has argued that continued share issuances could dilute Aurora shareholders and increase the number of shares it would need to acquire to complete the transaction.
Curaleaf said its offer provides Aurora shareholders with both cash and an equity interest in the combined company. The company also outlined its arguments regarding Aurora's valuation, financial performance and standalone strategy.
Curaleaf had issued a fact sheet on September 8, responding to what it described as misleading statements from Aurora regarding the proposed transaction. Curaleaf used the fact sheet to address Aurora's objections to the offer and present its position on the companies' respective prospects.
Curaleaf's offer remains subject to applicable conditions, while Aurora has opposed the bid and recommended that its shareholders reject the proposal.
The latest developments mark an escalation in the ongoing takeover battle between the two cannabis companies.
CURA.TO is trading down 1.49% at C$13.84 on the Toronto Stock Exchange.
ACB.TO is trading down 0.94% at C$5.25 on the Toronto Stock Exchange.
