Aurora clears final hurdle in CanniMed acquisition

Aurora Cannabis Inc. says it can begin buying up the remaining shares of CanniMed Therapeutics Inc. after its proposed friendly takeover, valued at $1.1 billion, was approved by antitrust authorities.

The Edmonton-based cannabis company said Wednesday in a news release it received a “no action” letter from the Competition Bureau, meaning its takeover of the Saskatoon-based company had cleared the final regulatory hurdle.

“This approval means we can move ahead with this acquisition and begin the integration of CanniMed into Aurora shortly thereafter,” Aurora CEO Terry Booth said.

Aurora and CanniMed announced the friendly takeover in late January. The deal ended a months-long hostile takeover attempt dominated by public jabs from both companies, an appeal to the provincial government and a major lawsuit, now dropped.

The larger company launched the hostile takeover bid after shareholders, including two Saskatchewan-based venture capital funds, approached it with concerns about CanniMed’s “ability … to execute,” Aurora said at the time.

Aurora has pledged to continue investing in CanniMed’s production facility southeast of Saskatoon, which has around 200 employees and is in the midst of a $10.5-million expansion aimed at boosting cannabinoid oil production.

Booth said in the statement that CanniMed will be the “cornerstone” of Aurora’s new medical cannabis centre of excellence, a corporate group it expects will have 40,000 patients and produce 260,000 kilograms every year.

This approval means we can move ahead with this acquisition and begin the integration of CanniMed into Aurora shortly thereafter.