QUICK FACTS

Investment:              CanniMed Therapeutics Inc.
Acquirer:                   Aurora
Type:                          M&A
Value:                         $1.1B
Sector:                       Cannabis

ABOUT THE DEAL

In January 2018, Aurora Cannabis, based in Cremona, Alberta, successfully acquired Saskatoon-based, TSX-listed CanniMed Therapeutics Inc. in Canada’s largest cannabis sector deal.

Gavin led analysis and diligence in Series A, B, and pre-IPO financing rounds.  He then supported the fund in its role during the acquisition of CanniMed by Aurora.  Shortly after Aurora made a bid for CanniMed, management of CanniMed resisted the offer adopting measures to try and block the acquisition. Despite the resistance and a lawsuit from CanniMed, which claimed economic injury, the team was able to successfully steer both parties towards an agreement.

The transaction, valued at approximately $1.1 billion, involved Aurora agreeing to pay $43 per CanniMed share in a mix of stock and cash. This acquisition came after Aurora’s initial takeover bid in mid-November, which valued CanniMed’s shares at up to $24.

The deal was a major victory because of the bubble and hype in which the Canadian cannabis industry found itself at the time. Despite serious pushback from management, a deal was struck with excellent valuation terms and a huge ROI for CanniMed shareholders.