Aurora is looking to acquire the company that is CanniMed Therapeutics and the latter company is not having it! And thus, it is asking for protection from the former.
CanniMed Therapeutics, based in Saskatoon, is as of now, looking for regulatory action from securities regulators in the 2 provinces of Ontario and Saskatchewan. This is the company’s latest move in trying to fight Aurora and its “forceful” takeover bid.
According to the Saskatoon-based company, Aurora’s bid is more like insider bidding as it is working in unison with 4 institutional shareholders who are already in binding agreements with CanniMed. Their agreement is in the amount of 38% of outstanding shares prior to the takeover bid.
CanniMed has also reached out the Financial and Consumer Affairs Authority of Saskatchewan and the Ontario Securities Commission for them to “ask” Aurora to pull back and make right the “several materially false and misleading statements” that are linked to the bid deemed hostile.
Both CanniMed and Aurora have been summoned to a hearing at the OSC. Aurora is looking to obstacle its counterparts’ shareholder rights plan.
CanniMed has argued that Aurora’s all-stock bid for the company worth up to $24 a share does not make sense for shareholders, but its own bid to acquire Newstrike Resources Ltd. does.