U.S.-based cannabis multistate operator Curaleaf Holdings on Tuesday escalated its pursuit of Canadian licensed producer Aurora Cannabis.
Curaleaf formally launched a previously announced $272 million hostile takeover bid, delivering offer documents to Aurora shareholders after the company declined to negotiate, Curaleaf said in a press release.
“Today, we are putting this proposal directly in the hands of Aurora shareholders,” Curaleaf Chairman and CEO Boris Jordan said in a statement.
The tender offer remains open until Dec. 1.
Is Curaleaf buying Aurora?
The offer values Aurora at $4 per share, made up of 0.3463 of a Curaleaf subordinate voting share plus 75 cents in cash for each Aurora common share.
The price represents a 45% premium to Aurora’s unaffected share price and a 110% premium when Aurora’s cash on hand is excluded, according to Curaleaf.
Jordan pointed to mounting pressure on Aurora’s core business, citing reduced Canadian medical cannabis reimbursement rates and the cancellation of German medical cannabis reimbursement.
He also flagged consecutive quarters of underperformance and about CA$4.65 billion in impairments Aurora recorded between fiscal 2020 and fiscal 2026.
Curaleaf said it made multiple private attempts to engage Aurora’s board before going public.
The company built its proposal using only publicly available information, saying Aurora refused to grant due diligence.
The bid carries no financing or due diligence conditions and is subject only to regulatory approvals.
Is Aurora resisting Curaleaf’s hostile takeover?
Aurora has pushed back.
The company said last week it corresponded with Curaleaf’s CEO and remains focused on executing its business plan over the short to medium term, though it didn’t rule out further dialogue.
Aurora’s board has since formed a special committee to review the offer.
Curaleaf is framing the deal as a path to a larger, more diversified global platform.
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The company projects at least $40 million in annual cost synergies across corporate overhead, procurement and supply chain operations.
A combined company would carry more than $1.5 billion in trailing 12-month revenue and nearly $350 million in adjusted EBITDA, along with a pro forma market capitalization above $3 billion.
Both companies have spent the past few years digging a foothold in European markets, particularly in Germany.
