With regards to all of the issues that a related to issued and outstanding CanniMed shares, a special committee has been formed by the company that comprise of independent directors as the company anticipates that there can be a formal offer from Aurora Cannabis Inc., the former company announced recently.
The anticipated offer for merger would be reviewed jointly by the company’s board of directors and the Special Committee as and when the offer is received. Any proposal from Aurora would also be consulted by the committee and the board with the respective legal and financial advisors, following which a decision would be arrived at.
Ste up 16 years ago, CanniMed is a multinational biopharmaceutical company based out of Canada and leads the Canadian medical cannabis industry. The company has been engaged in pharmaceutical cannabis cultivation with the help of GMP-compliant production process. it also has multiple research and development platforms and offer a wide range of pharmaceutical-grade cannabis products.
The company also remined its shareholders about the availability of an attractive and accretive transaction for them at the moment. The company has further said that one CanniMed completes the acquisition of Newstrike Resources Ltd., a leading global cannabis company would be formed which would have unique capabilities and market positioning for offering customers pioneering, high quality products through two top tier distinct brands which are in turn exclusively situated to cater key product trends as well as the developing drivers of growth being witnessed in the medical and adult-use recreational cannabis markets.
Secondly, the company said that it now has the potential to implement its strategy of becoming the outstanding cannabis leader in Canada and worldwide by the inclusion of Up Cannabis Inc. and due to the strategic partnership with The Tragically Hip. The combination would allow the company to possess enhanced operational scale that would have a target production capacity of 45,000 kg by 2019, as well as enhanced capital markets existence with a pro-forma capitalization of more than $500 million, and therefore the company expects to conform to the key metrics before synergies, by 2019.
The company has also advised its shareholders not to undertake any action ono the basis of any proposal from Aurora till such time that the company communicates with them via the Director’s Circular, which it intended to be made available to them as soon as possible.
The company has also appointed Kingsdale Advisors as the partner for strategic shareholder and communications. The financial advisor to the for the board and the will be AltaCorp Capital Inc. while Borden Ladner Gervais LLP will act as the legal advisor to the board. The soecial committee will have the help of Cormark Securities Inc. in financial matter while Stikeman Elliott LLP will help the committee on legal matters, the company said.
CanniMed was the first company to receive a license under the Marihuana for Medical Purposes Regulations in Canada which is the preceded the present Access to Cannabis for Medical Purposes Regulations.
(Adapted from Streetinsider.com)