Curaleaf Responds to Aurora Circular; Reaffirms Offer as the Best Path to Value Creation for Shareholders
Curaleaf publicly rebutted Aurora Cannabis's Directors' Circular, reaffirming its hostile takeover offer and urging Aurora shareholders to tender, citing a 45% premium to the unaffected price and a US$5.00 cap representing an 82% premium to the 30-day VWAP as of August 10, 2026. The release attacks Aurora's record: roughly US$398 million raised through dilutive issuances since September 2020 (~31% dilution), quarterly adjusted EBITDA down 63% since December 2025, negative operating cash flow of C$4.4 million in the June quarter, and KPMG's April 2024 resignation as auditor.
Key figures
- Guidance
- Curaleaf cites Aurora's own guidance: fiscal 2027 revenue to return to approximately fiscal 2025 levels, with adjusted EBITDA expected to decline significantly from fiscal 2026
- Offer premium
- 45% to unaffected trading price
- Curaleaf ltm ocf
- US$145 million (LTM ended June 30, 2026; $157 million cited in highlights)
- Curaleaf fy27e ocf
- US$165 million (~20% growth vs. FY25 US$138 million)
- Offer cap price usd
- US$5.00
- Curaleaf h1 2026 fcf
- $17 million
- Curaleaf h1 2026 ocf
- $50 million
- Curaleaf utp pct tev
- 13% vs. ~30% US cannabis peer average
- Aurora atm avg prices
- ["US$3.57 (fiscal 2026)","US$3.09 (June quarter)"]
- Curaleaf notes raised
- US$500 million senior secured notes
- Offer premium ex cash
- 110%
- Aurora ocf june quarter
- -C$4.4 million
- Cap premium to 30d vwap
- 82% (197% on ex-cash basis), vs. 30-day VWAP on unaffected date of August 10, 2026
- Implied ebitda multiple
- 12.0x CY2026E adjusted EBITDA, more than 68% above comparable Canadian peers
- Vac reimbursement rate cut
- almost 30%
- Curaleaf net debt to ebitda
- ~3.3x LTM, expected to reach 2.7x by FY2027E
- Aurora cumulative ocf losses
- more than C$480 million
- Curaleaf h1 2026 growth investment
- $33 million
- Aurora ebitda decline since dec2025
- 63%
- Aurora share price decline under mgmt
- 97%
- Aurora dilutive issuances since sep2020
- US$398 million raised, ~31% shareholder dilution
- Aurora impairment and transformation costs
- more than C$400 million
AI analysis
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