Aurora Cannabis Inc. (ACB.TO) has won the necessary support for its takeover of CanniMed Therapeutics Inc. (CMED.TO) in what will be the largest marijuana takeover deal yet, according to people familiar with the matter.
Vancouver-based Aurora agreed to acquire CanniMed Therapeutics in a sweetened $1.23 billion deal in January, after its smaller rival originally rebuffed its efforts to acquire the company.
More than two-thirds of CanniMed shareholders have tendered their shares ahead of the Friday deadline, clearing the way for the takeover, the people said, who asked to remain anonymous because the matter is private.
“We are still satisfying material conditions of the transaction and we have an outside date of March 9 and we are going to beat that,” said Aurora spokesman Cam Battley.
A representative for Saskatoon, Saskatchewan-based CanniMed didn’t return requests for comment.
The takeover comes amid a volatile time for Canadian cannabis stocks, with shares sliding from highs in early January. The industry has also seen a wave consolidation as companies seek to gain market share before sales become legal sometime after July.
Aphria Inc. (APH.TO) agreed in January to buy Nuuvera Inc. (NUU.V), a global cannabis company based in Brampton, Ontario, for about $826 million in cash and stock.
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