The Cannabis M&A Wave Is Here. Curaleaf Proved It. Here's Whether Green Thumb Should Ride It -- or Wait to Be Swept Up.
Green Thumb Industries is in a strong position to acquire other cannabis companies, but will that happen?
Overview
U.S.-based cannabis company Curaleaf Holdings (OTC: CURLF) said on Aug. 18 it has begun a takeover bid of Canadian cannabis retailer Aurora Cannabis (NASDAQ: ACB), valuing Aurora at around $260 million.
Under the proposal, Aurora shareholders would receive 0.3463 Curaleaf shares and $0.75 in cash per Aurora share, for a total consideration of $4 per Aurora share. The offer is capped at $5 per share if Curaleaf's stock rises above a set level. Aurora closed Friday at $3.94.
Details
Despite Aurora's financial difficulties -- the medical marijuana retailer had an earnings-per-share (EPS) loss of $0.07 in the first quarter of fiscal 2027, and it reported $93.7 million in debt -- the company is attractive to Curaleaf because of its market share in Europe. The move would improve Curaleaf's global footprint and leverage its operational expertise to sell Aurora's high-quality products.
Source
Originally published at www.fool.com.