Aurora Cannabis (ACB.TO) urged shareholders to reject Curaleaf Holdings (CURA.TO)'s unsolicited takeover bid, saying that the offer undervalues the company, Aurora said Wednesday.
Aurora said Curaleaf is seeking to acquire Aurora's assets at a discount, adding that Curaleaf's debt of over C$1 billion would put Aurora shareholders at risk.
The board of Aurora recommended that Aurora shareholders take no action on the bid, and told shareholders who have tendered their shares to the bid to withdraw those shares.
Aurora said the company's standalone strategy to exit lower-margin businesses, expand cultivation and manufacturing capacity, and develop an international platform offers better value for shareholders.
"Curaleaf has over a C$1 billion in debt and is asking shareholders to give up ownership of a stronger, debt-free and growing global medical cannabis company in exchange for an offer with intentionally limited upside, that does not reflect Aurora's fundamental value, exposes shareholders to Curaleaf's risks and would leave shareholders with limited voting influence in a combined company," Aurora Executive Chairman and CEO Miguel Martin said.