Get into the nitty gritty bickering and posturing here…
Strong words flying back and forth in a series of duelling statements already made it clear Aurora Cannabis had no desire to get into bed with an American giant.
But now it’s official: The Canadian cannabis company rejects Curaleaf’s takeover offer.
“Curaleaf’s hostile and opportunistic bid significantly undervalues Aurora, and aims to capture Aurora’s assets at a discount,” the Edmonton-based company said in a Sept. 2 news release. “Following a comprehensive review by Aurora’s Board of Directors on the unanimous recommendation of a special committee comprised of independent directors and after receiving external advice from financial and legal advisors, the board unanimously concluded that the hostile bid is not in the best interests of Aurora or Aurora shareholders.”
Curaleaf launched its hostile takeover bid on Aug. 18 after saying it had asked nicely and had been rejected.
The U.S. company, headquartered in Stamford, Connecticut, responded quickly to Aurora’s “misleading statements.”
“Aurora’s continued refusal to engage in a meaningful price discussion regarding this transaction is disappointing and shows disregard for the interests of the company’s own shareholders. Not once has there been a counteroffer presented to us, which shows managements’ motives to preserve their own positions versus creating value for shareholders,” said Curaleaf CEO Boris Jordan. “If management’s plan creates greater value than our offer, where is the evidence?”
Curaleaf and Aurora trade financial blows
Aurora is in financial trouble and trending downward, Curaleaf said in its own news release. Aurora’s shares have shot up since the takeover news, but are overvalued, Curaleaf said.
“Aurora’s Never-Ending Transformation is Not Working,” the Curaleaf release said.
But it’s Curaleaf that’s not in such hot shape, responded Aurora.
and more boys being boys here
