Hostile takeover bid

Photo: The Canadian Press

 

CanniMed Therapeutics says it is seeking regulatory action in both Saskatchewan and Ontario in its latest push back against Aurora Cannabis' hostile takeover bid.

The Saskatoon-based medical marijuana producer (TSX:CMED) says it has applied to securities regulators in both provinces for several orders, including that Aurora's hostile offer be considered an "insider bid," and be treated as such.

CanniMed says in a statement that Aurora (TSX:ACB) acted jointly with the four institutional shareholders with whom the company secured lock-up agreements amounting to 38 per cent of outstanding shares before commencing its takeover bid, which should be ceased until 105 days after an insider bid circular is delivered to shareholders.

The Saskatoon-based marijuana company is also asking that Financial and Consumer Affairs Authority of Saskatchewan and the Ontario Securities Commission require Aurora to retract and correct what it says are "several materially false and misleading statements" in connection with its hostile bid.

The statement comes hours before the two licensed producers are due at an OSC hearing where Aurora is seeking to block CanniMed's shareholders rights plan.

CanniMed has argued that Aurora's all-stock offer for the company worth up to $24 per share does not make sense for shareholders, but its own bid to acquire Newstrike Resources Ltd. (TSXV:HIP) does.