Aurora Cannabis has agreed to be acquired by Organigram Global in a deal valued at 561 million Canadian dollars ($401.1 million), fending off a hostile bid by rival Curaleaf Holdings.
Under their agreement, Organigram will acquire all of the issued and outstanding common shares of Aurora at a price of C$7.80 on a fully diluted equity value basis. Shares of Aurora have slightly risen over the course of 2026, up 2.1% to close on Monday at C$5.89.
Organigram said the offer price represents a 93% premium to Aurora's unaffected closing price on Aug. 10, the day before Curaleaf said it would make a hostile bid to buyout the company.
The agreement caps a contentious three-month takeover battle after Curaleaf launched an unsolicited hostile bid in August valued at roughly $272 million, which Aurora's board had unanimously rejected. Curaleaf subsequently sweetened its offer in early October to $5.00 a share, valuing Aurora at $324.2 million in a bid to preempt competing suitors and force Aurora into negotiations.
Curaleaf wasn't immediately available for comment.
Organigram's C$7.80 offer tops Curaleaf's revised bid by 21%, prompting Aurora to urge any shareholders who had tendered shares to Curaleaf to withdraw them.
Organigram said that its offer provides Aurora shareholders with immediate value and a meaningful choice in how they get paid out--either in cash, stock or a combination of both--which would allow them to continue participating in the combined company.
The company expects that a combined entity will be a global cannabis champion with leading market positions in Canada, Europe and Australia as it builds out its presence across other key regions.
"By bringing together Aurora's established global medical cannabis platform with our Canadian operations and growing international footprint, we are creating a larger, stronger, and more diversified company," said Organigram Chief Executive James Yamanaka.
The transaction is backed by a 100 million British pounds ($134.1 million) private placement from cornerstone investor British American Tobacco and an expanded credit facility of up to $210 million from ATB Financial.
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