Aurora steps up battle against CanniMed purchase of Newstrike

EDMONTON — Aurora Cannabis Inc. is taking further steps to convince CanniMed Therapeutics Inc. shareholders that the proposed acquisition of Newstrike Resources Ltd. is a “terrible deal” compared with its own hostile bid of the Saskatoonbased medical-marijuana producer.

Aurora plans to file a dissident circular and will solicit votes against CanniMed’s resolution to issue shares in connection with its proposed acquisition of the Tragically Hip backed Newstrike.

Edmonton-headquartered Aurora argues that CanniMed is Newstrike’s “last lifeline” and a significant portion of its capacity is unfunded.

Last month, Aurora launched an all-stock takeover bid for CanniMed, with one of its conditions being that CanniMed abandon its own proposed deal for Toronto-based Newstrike.

“We reviewed all disclosed and public information on Newstrike and on CanniMed management’s proposed acquisition, and in our opinion it’s a terrible deal for CanniMed shareholders,” said Terry Booth, CEO of Aurora, in a statement Monday.

“It doesn’t take a genius to see that a company with no revenues, no sales licence, no patients, no intellectual property of significant value … should not be worth giving 35 per cent of CanniMed away to Newstrike shareholders,” Booth said of the smaller Newstrike.

CanniMed has said its plan to acquire Newstrike is the better plan and alleges that Aurora has launched an “insider bid,” working jointly and in concert with some of its shareholders.

Both CanniMed and Aurora have called on regulators to intervene, with a hearing scheduled for Wednesday.

CanniMed’s chief executive Brent Zettl on Monday called Aurora’s plan to file a dissident circular a “desperate attempt to stop what they know is a better deal for CanniMed shareholders.”