Organigram Global Inc. is set to acquire Aurora Cannabis Inc. in a deal worth about $401 million.
The price represents a 93% premium to Aurora’s Unaffected Share Price on August 10 and a 21% premium to the implied value of the unsolicited Curaleaf hostile bid as of November 2.
The deal effectively ends the hostile takeover bid of Aurora by Curaleaf Holdings, Inc. Aurora’s board had unanimously rejected Curaleaf’s amended hostile takeover offer. Under the agreement, Organigram will acquire all outstanding Aurora shares.
Aurora shareholders can elect to receive C$7.80 in cash, 5.8626 Organigram shares, or a combination of C$3.75 in cash and 3.0431 Organigram shares per share, subject to proration. The transaction values Aurora at approximately C$561 million.
James Yamanaka, CEO of Organigram, called the deal “a defining step in Organigram’s strategy to build a disciplined, global cannabis leader” in a press release. He said the combination creates “a larger, stronger, and more diversified company.”
“By bringing together Aurora’s established global medical cannabis platform with our Canadian operations and growing international footprint, we are excited to build on our complementary operations, expertise, capital resources, and cultures to accelerate growth, meet the growing global demand, and drive long-term profitable growth,” Yamanaka said in a press release.
Miguel Martin, executive chairman and CEO of Aurora, said in a press release that “Combining with Organigram will accelerate Aurora’s international growth strategy by strengthening commercial execution, expanding our product and R&D capabilities, and extending our global operating network.”
Martin said the transaction “is the result of a robust strategic review process and delivers compelling value today, meaningful choice in how they receive it and the opportunity to participate in the future of a leading cannabis company” in a press release.
Aurora shareholders are expected to hold approximately 35% pro forma economic ownership of the combined company on a fully diluted basis. They will also hold 42% voting ownership.
The combined company is expected to have a stronger presence in Canada, Europe and Australia. The companies have identified synergies exceeding C$50 million.
The deal brings together Aurora’s global medical cannabis platform with Organigram’s Canadian operations and growing international footprint.
The transaction is subject to shareholder, regulatory and court approvals. Special shareholder meetings are expected in December 2026.
The deal is expected to close in January 2027. Until then, both companies will continue operating independently.
The agreement follows Curaleaf’s hostile bid for Aurora, which Aurora’s board rejected. The Organigram deal provides Aurora shareholders with a higher-value alternative.
Shareholders will choose between cash, shares, or a mixed consideration under the proration rules.
The combined company will operate across Canada, Europe and Australia, with the companies citing complementary operations and capital resources as drivers of the transaction.
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