Aurora Is Said to Win Support for Biggest Marijuana Takeover

(Bloomberg) -- Aurora Cannabis Inc. has won the necessary support for its takeover of CanniMed Therapeutics Inc. in what would be the largest marijuana takeover yet, according to people familiar with the matter.

Aurora, which runs its operations out of Edmonton, Alberta, agreed to acquire CanniMed Therapeutics in a sweetened offer worth C$1.23 billion ($950 million) in January, after its smaller rival originally rebuffed its efforts to acquire the company.

Aurora jumped 0.70 percent to C$11.82 as of 9:54 a.m. in Toronto. CanniMed rose .20 percent to C$40.29, for a market of C$992 million.

More than two-thirds of CanniMed shareholders have tendered their shares ahead of the Friday deadline, clearing the way for the cash and stock deal, said the people, who asked to remain anonymous because the matter is private.

“We are still satisfying material conditions of the transaction and we have an outside date of March 9 and we are going to beat that,” said Aurora spokesman Cam Battley.

A representative for Saskatoon, Saskatchewan-based CanniMed didn’t return requests for comment.

The takeover comes amid a volatile time for Canadian cannabis stocks, with shares sliding from highs in early January. The industry has also seen a wave consolidation as companies seek to gain market share before sales become legal sometime after July.

Aphria Inc. agreed in January to buy Nuuvera Inc., a global cannabis company based in Brampton, Ontario, for about C$826 million in cash and stock.

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