Aurora Cannabis’ offer of $1.1 billion for CanniMed Therapeutics has closed and the two companies will now merge.
The two companies took six weeks to complete the biggest merger or acquisition in cannabis company history.
CanniMed met all the conditions of the Offer and Aurora Cannabis will pay for all tendered CanniMed shares as soon as they can, but not any later than 3 business days after they take the shares. Aurora Cannabis will then issue an estimated 50.6 million Aurora common shares and pay for the tendered CanniMed shares with an estimated cash payment of approximately $98 million.
The dilution of common shares is not an uncommon occurrence with Aurora Cannabis. The number of outstanding shares grew from the initial 16.03 million shares in 2013 to 279.03 million in 2017. The number of shares that Aurora Cannabis has outstanding in 2018 is already over an estimated 398.67 million.
The value of Aurora Cannabis stock (ACB), with the news of the successful bid by Aurora Cannabis was made public on March 9, 2018, saw the highest increase at 4.02% on March 13th.
However, the stock lost the bump in value and is currently (March 14, 2018) at only a $0.10 increase to the stock value before the news first broke.