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Pot producer Aurora wins shareholder support for CanniMed purchase

Published 2018-03-09, 09:37 a/m
© Reuters.  Pot producer Aurora wins shareholder support for CanniMed purchase
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March 9 (Reuters) - Aurora Cannabis ACB.TO , Canada's second-largest marijuana producer, has won shareholder support for its C$1.1 billion ($857 million) proposed takeover of smaller rival CanniMed Therapeutics CMED.TO , the company said on Thursday.

About 70 percent of CanniMed's total outstanding shares had been tendered as of Thursday, Aurora said in a statement. Aurora also said it would issue about 50.6 million of its own shares and pay about C$98 million in cash for the CanniMed shares tendered as of March 8.

Aurora has extended the time period for tendering remaining CanniMed shares to March 24.

The deal, which won regulatory approval in February after months of tensions between the companies, comes at a time when cannabis producers are jostling to gain from Canada's move to legalize recreational use of pot.

($1 = 1.2840 Canadian dollars)

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