Organigram Global Inc. agreed to buy Aurora Cannabis Inc. in a cash-and-stock deal valuing its larger rival at about C$561 million, setting up a contest with Curaleaf Holdings Inc., whose hostile offer for Aurora remains on the table.
Aurora shareholders can elect to receive C$7.80 a share in cash, 5.8626 Organigram shares, or a mix of C$3.75 in cash plus 3.0431 Organigram shares, subject to proration, the companies said Tuesday. The offer is 93% above Aurora’s closing price on Aug. 10, before Curaleaf disclosed its plan to bid, and about 21% above the value of Curaleaf’s offer as of Nov. 2. Aurora’s board backs the agreement.
BAT supplies the cash
To help fund the cash portion, Organigram arranged a private placement with its largest shareholder, BAT, of about 141 million shares at C$1.33 each, raising £100 million. If that purchase would push BAT’s stake above 30%, it will receive non-voting convertible preferred shares instead. The share price used in the deal is based on Organigram’s 20-day volume-weighted average on the Toronto exchange.
The combination would bring together two of Canada’s best-known licensed producers, with medical and recreational businesses at home and export sales in Europe and Australia. The deal needs approval from shareholders of both companies, regulators and the Supreme Court of British Columbia, and is expected to close in January 2027.
Curaleaf stays in
Curaleaf, based in Stamford, Conn., first launched its unsolicited offer in August and sweetened it on Oct. 6 to 0.4013 of a Curaleaf share plus $1 in cash for each Aurora share. Aurora’s board unanimously rejected it.
In a statement Tuesday, Curaleaf said its bid remains outstanding and argued that it offers a stronger combined company, more certainty and faster closing. It criticized Aurora’s directors for opening their books to Organigram while refusing to engage with Curaleaf, and said it is awaiting details of the new agreement, including any breakup fee, the future board and management, and the rights BAT will receive.
