(Toronto, Canada) – Organigram Global has agreed to buy Aurora Cannabis in a transaction valuing Aurora’s equity at approximately C$561 million, setting up a combination of two Canadian cannabis businesses with operations serving domestic and overseas markets.

The companies announced the agreement November 3. Both boards support the proposed takeover, but it remains subject to shareholder, court and regulatory approvals. They expect shareholder meetings in December and completion in January 2027.

The agreement gives Aurora shareholders a board-backed alternative to Curaleaf’s hostile takeover offer, which Aurora’s directors have rejected. According to the companies’ announcement, Organigram’s consideration represents a 21 per cent premium to the implied value of Curaleaf’s offer as calculated using November 2 market data. That comparison is tied to share prices, rather than a fixed difference between two cash offers.

Aurora shareholders would be able to choose C$7.80 in cash for each share, 5.8626 Organigram shares, or a combination of C$3.75 cash and 3.0431 Organigram shares. Cash-only and share-only elections would be subject to proration because the agreement limits the total cash and shares available.

The proposed combination links Organigram’s Canadian recreational cannabis business with Aurora’s medical cannabis operations and international manufacturing capacity. The companies say the combined business would operate five production and distribution facilities certified to European Union good manufacturing practice standards.

They project more than C$50 million in synergies, including procurement, distribution and public-company expense savings, alongside opportunities to sell products through their combined networks. Those are management expectations, not savings already achieved.

British American Tobacco, an existing Organigram backer, is to provide C$187.5 million through a concurrent investment to help finance the cash consideration and transaction expenses. Aurora shareholders are expected to hold approximately 35 per cent of the combined company’s economic ownership on a fully diluted basis and 42 per cent of its voting ownership.

The next decisive steps are the shareholder votes and external approvals. Until those conditions are satisfied and the transaction closes, the announcement remains an agreed acquisition—not a completed transfer of Aurora’s business.

Accompanying image: editorial illustration.

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