Aurora Cannabis files ASC application over Curaleaf hostile bid deficiencies

Aurora Cannabis Inc. (NASDAQ: ACB) has filed an application with the Alberta Securities Commission (ASC) seeking an order requiring Curaleaf Holdings, Inc. (OTCQX: CURLF) to address what Aurora describes as several deficiencies in Curaleaf's hostile bid circular.

Aurora identified three specific deficiencies in Curaleaf's circular: failure to provide pro forma financial statements showing the combined company's financial condition; failure to keep the hostile bid open for the minimum 105-day deposit period required under securities laws; and failure to publish notice of the bid in a French-language publication, which Aurora says denied French-speaking shareholders access to information about the bid's commencement.

Aurora also stated that Curaleaf's failure to comply with the 105-day deposit period means the bid does not qualify as a "permitted bid" under Aurora's Shareholder Rights Plan, contrary to Curaleaf's own disclosure. Aurora noted the Rights Plan will be triggered if Curaleaf acquires more than 20% of Aurora's shares.

"We believe Curaleaf has failed to comply with applicable securities law requirements in connection with its hostile bid," said Miguel Martin, Executive Chairman and Chief Executive Officer of Aurora. "These are not technicalities. They are shareholder protection requirements, and they matter."

Aurora stated it wrote directly to Curaleaf requesting that the deficiencies be corrected, but Curaleaf refused. The ASC application asks the regulator to order Curaleaf to deliver the required pro forma financial statements, publish the required French-language notice in Québec, and restart the mandatory 105-day deposit period after those corrections are made.

Aurora's Board of Directors and Special Committee unanimously recommended on September 2 that shareholders reject Curaleaf's hostile bid by taking no action and not tendering their shares. The Board also recommended that any shareholders who have already tendered their shares withdraw them.

You May Also Be Interested In

• Softbank Said To Weigh Buying Largest Us Security Firm Allied - Bloomberg
• Michael Dell Says He Expects Memory Crunch to Get Worse - WSJ
• Celanese raises LCP prices globally across product lines