Another blockbuster deal has been announced in the cannabis sector.
Leamington, Ontario-based Aphria Inc. has announced that it intends to buy 100 percent of the shares in Nuuvera, which is another TSX-listed cannabis company.
It involves a share swap valued at $826 million.
Aphria arrived at this figure based on a price of $8.50 per Nuuvera share.
This represents a 30.5 percent premium over its 10-day weighted average price of $6.51.
“The combination of Aphria and Nuuvera creates a true global leader in medical cannabis with excellent potential for growth and value creation,” Aphria CEO Vic Neufeld said in a news release. "This transaction, which builds on a long-standing relationship between the two companies, brings together our top tier ability to grow high-quality cannabis at a low-cost with Nuuvera’s expansive international network, expertise in processing, and access to industry leading technology."
The takeover is subject to the approval of regulators and the Ontario Superior Court.
It also requires the endorsement of two-thirds of the votes cast by Nuuvera shareholders, including a majority of minority shareholders.
Meanwhile, another TSX-listed company, Aurora Cannabis Inc., recently increased its offer to $44 per share for CanniMed Therapeutics Inc.
In November, CanniMed spurned a hostile takeover bid of $24 per share from Aurora, but it's now willing to accept this higher price.
That deal has been valued at $1.1 billion and is also subject to regulatory approval.More