The deal comes two months before cannabis is expected to be legalized for recreational use in Canada, and is the latest in a wave of mergers in the industry as marijuana makers - emboldened by similar moves in Europe and a number of USA states - seek to cut costs and gain scale.
The boards of both companies have approved the transaction but the deal requires approval by at least two-thirds of MedReleaf shareholders and a simple majority of Aurora shareholders. "Our complementary assets, strategic synergies, and strong market positioning will provide us with critical mass and an excellent product portfolio in preparation for the adult consumer use market in Canada", Aurora chief executive Terry Booth said in a statement, reports Toronto City News. Aurora offered to buy all the MedReleaf shares for C$29.44, representing an 18.2 percent premium to MedReleaf's Friday closing price, according to Reuters. Markham, Ontario-based MedReleaf Corp.is an R&D-driven company dedicated to innovation, operational excellence and the production of top-quality cannabis.
BMO Capital Markets was Aurora's financial adviser, while Canaccord Genuity advised MedReleaf.
SpaceX to debut upgraded Falcon 9 rocket
SpaceX is set to debut the latest and most advanced version yet of its workhorse Falcon 9 rocket, called the Block 5, on Thursday. Standing at more than 250 feet tall, the new rocket system is 40 percent bigger than the initial Falcon 9 launched back in 2010.
ACBFF shares were down about 1.98% on Monday.
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