Organigram to Acquire Aurora and Establish a Global Cannabis Leader
Organigram agreed to acquire Aurora Cannabis for C$7.80 per share, valuing Aurora at approximately C$561 million on a fully diluted basis. The offer represents a 93% premium to Aurora's unaffected price and a 21% premium to Curaleaf's hostile bid, which Aurora's board unanimously rejected. Aurora shareholders can elect cash, 5.8626 Organigram shares, or a mix, subject to proration, and are expected to hold roughly 35% pro forma economic ownership of the combined company.
Key figures
- Deal Value Usd
- C$561 million
- Offering Price
- C$7.80
- Expected close
- January 2027
- Identified synergies
- C$50 million
- Share exchange ratio
- 5.8626
- Atb credit facilities
- $210 million
- Cash plus share option
- C$3.75 plus 3.0431 Organigram shares
- Premium to hostile bid
- 21%
- Premium to unaffected price
- 93%
- Aurora pro forma voting ownership
- 42%
- Aurora pro forma economic ownership
- 35%
- Bat private placement gross proceeds
- C$187.5 million
AI analysis
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