Canadian cannabis leader Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI) has entered into a definitive arrangement agreement to acquire all issued and outstanding common shares of Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) for C$7.80 per share, valuing Aurora at approximately C$561 million on a fully diluted equity value basis.
The transaction offers Aurora shareholders a 93% premium over its unaffected share price prior to Curaleaf Holdings’ unsolicited hostile bid, and a 21% premium over Curaleaf’s amended offer. Aurora’s Board of Directors unanimously rejected the hostile bid and recommended the Organigram combination, which is supported by a C$187.5 million concurrent private placement from British American Tobacco (BAT) and a C$210 million senior credit facility led by ATB Financial.
Upon closing, expected in January 2027, the combined entity will own five EU-GMP certified production and distribution facilities, with Aurora shareholders holding approximately 35% economic ownership and 42% voting interest.
Key Deal Structure & Strategic Highlights:
- Consideration Choice: Aurora shareholders can elect C$7.80 in cash, 5.8626 Organigram shares, or a combination of C$3.75 cash and 3.0431 shares, subject to proration (capped at C$253.6M cash and 205.8M shares).
- Synergies & Financial Impact: Identifies over C$50 million in run-rate cost synergies driven by cross-selling, procurement scale, consolidated distribution, and production optimization across global markets.
- Strategic Backing & Advisors: BAT acquires 141 million Organigram shares via private placement. BMO Capital Markets served as financial advisor to Organigram; Fort Capital Partners and Origin Merchant Partners advised Aurora and its Special Committee.
“This transaction is a defining step in Organigram’s strategy to build a disciplined, global cannabis leader,” said James Yamanaka, CEO of Organigram. “By bringing together Aurora’s global medical platform with our Canadian operations and growing international footprint, we are creating a larger, stronger, and more diversified company.”
“Combining with Organigram will accelerate Aurora’s international growth strategy by strengthening commercial execution and extending our global operating network,” added Miguel Martin, Executive Chairman and CEO of Aurora.
