Aurora Cannabis, Aphria Said To Have Walked From Potential Merger Over Executive Compensation

It’s been reported by BNN Bloomberg that Aphria Inc (TSX: APHA) (NASDAQ: APHA) and Aurora Cannabis (TSX: ACB) (NYSE: ACB) recently explored the topic of a merger, whereby Aphria would become the majority holder of the resulting issuer. The report from Bloomberg comes weeks after Twitter user @BettingBruiser originally reported on the matter.

Unsurprising to investors in Canadian potstocks, BNN has reported that discussions broke down not because of perceived value to shareholders, but rather over the topic of executive compensation along with board composition. Discussions for the merger reportedly took place over the course of several weeks before finally breaking down last week. It’s unclear if discussions are continuing between the two firms at this time.

Prior to the breakdown of merger discussions, Aphria was said to be the majority holder in the resulting issuer, with current shareholders set to receive 51% of the resulting company while Aurora shareholders would own 49%. Given this fact, current Aphria CEO Irwin Simon is said to have been the selected head of the resulting issuer. Compensation to shareholders was planned to be provided via a share swap, rather than that of an all cash transaction, however the exchange rate was not disclosed.

If the transaction were to have closed, the resulting issuer would have been valued at roughly $3.5 billion while representing approximately 30% of all recreational cannabis sales in the country. $200 million in costing synergies were said to have already been found between the two issuers, while having combined annual revenue in excess of $800 million.


Information for this briefing was found via BNN Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

  1. If the merger goes through what will happened with Aurora Warrants exercising date 2ND OF NOVEMBER 2020 with an exercise price of $ 40.00. CAD .

Video Articles

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

Aurora Cannabis: What Happened?

Terry Booth’s Thursday departure from the C suite at Aurora Cannabis (TSX: ACB) (NYSE: ACB)...

Sunday, February 9, 2020, 08:00:00 AM

Stifel Downgrades Aurora Cannabis Price Target To $3.60 Based On Liquidation Analysis

This morning, Stifel downgraded their 12-month price target on Aurora Cannabis (TSX: ACB) (NYSE: ACB)...

Wednesday, October 28, 2020, 10:59:00 AM

Cannabis Companies Have Begun Moving To Self-Insure

There is a common expression in the cannabis industry that “everything is more expensive.” Even...

Sunday, October 3, 2021, 09:00:00 AM

Aurora Cannabis Posts Loss of $158 Million for Third Quarter

Aurora Cannabis (TSX: ACB; NYSE: ACB) reported its third quarter 2019 earnings last night, posting...

Wednesday, May 15, 2019, 07:00:27 AM

Cronos Group Licenses IP From Aurora Cannabis, 22nd Century Group Related To Biosynthesis

Aurora Cannabis (TSX:ACB) has reportedly entered into a licensing arrangement with 22nd Century Group (NASDAQ:...

Wednesday, December 15, 2021, 09:21:00 AM