Aurora Cannabis is exploring alternative transactions after urging shareholders to again reject a revised takeover offer from Curaleaf.
The Canadian company, which owns MedReleaf Australia, said the new offer tabled by Curaleaf still “does not reflect the value of the company Aurora shareholders own today”.
In formally rejecting the improved terms, Aurora executive chairman and chief executive Miguel Martin told shareholders the firm was “actively exploring” alternatives that may offer shareholders “greater value than the revised hostile bid”.
Curaleaf upped its offer last week, tempting Aurora shareholders with a maximum US$6 per share – comprising Curaleaf shares and cash – up from the US$5 initially tabled.
The offer, which expires on December 4, represents a premium of 86% on Aurora’s share price.
But an Aurora committee again rejected the deal as “opportunistic”, and revealed it has approached “multiple parties” to assess their interest in a possible transaction.
Aurora said “numerous discussions” have been held with firms who it said have been “examining information relating to Aurora”.
Alternatives to the Curaleaf deal include a possible transaction with one or more third parties or remaining independent as a stand-alone entity.
“As this process is ongoing, it is not possible at this time to predict with certainty what alternatives (if any) may emerge from this process,” the company said in a statement.
“There can be no assurance that the process will result in a transaction. However, shareholders should not tender their shares [to Curaleaf] until the process is completed.”
It added that “prematurely” accepting the Curaleaf offer “could negatively affect the possibility of a superior alternative being available for shareholders to consider”.
Executive chairman and chief executive Miguel Martin said: “Curaleaf’s revised offer still does not reflect the value of the company Aurora shareholders own today. Aurora is debt-free with a strong cash position, and we believe the revised hostile bid continues to ask shareholders to give up that strength, and their future upside, at a discount.
“We urge shareholders to keep their options open, reject the revised hostile bid and take no action until they can consider all the alternatives available to them.”
Curaleaf has yet to respond.