Organigram Global agreed to acquire Aurora Cannabis for C$7.80 per share ($5.54), valuing Aurora at approximately C$561 million ($398.3 million) on a fully diluted equity basis. The offer represents a 93% premium to Aurora’s Aug. 10, unaffected share price and a 21% premium to Curaleaf’s unsolicited hostile takeover bid, which Aurora’s board unanimously rejected. Aurora shareholders can elect to receive cash, Organigram shares, or a combination of both, subject to proration. The transaction is expected to close in January 2027, pending shareholder, regulatory, and court approvals.
British American Tobacco, through its wholly owned indirect subsidiary BT DE Investments Inc., is Organigram’s strategic shareholder and holds 30% of its voting rights. BAT has agreed to invest C$187.5 million ($133.1 million) in Organigram through a concurrent private placement of 141 million shares at C$1.33 each ($0.94), with proceeds helping finance the cash portion of the acquisition. BAT has also entered into an irrevocable voting agreement supporting the transaction. The combined company will operate five EU-GMP-certified production and distribution facilities and expects to generate more than C$50 million ($35.5 million) in synergies. Aurora shareholders are expected to hold approximately 35% of the combined company’s economic ownership and 42% of its voting rights.
