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Jan 22, 2018

CanniMed, Aurora to continue stand-still agreement ahead of shareholder vote

Aphria marijuana

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SASKATOON - CanniMed Therapeutics Inc. says its truce with rival medical marijuana company Aurora Cannabis Inc. will continue past the original Monday deadline.

The Saskatoon-based company has been fending off a hostile takeover by Aurora, which wants CanniMed to abandon its friendly takeover of Newstrike Resources Ltd.

CanniMed and Aurora's stand-still agreement provides them with an opportunity to hold talks ahead of a rescheduled CanniMed shareholder vote on Thursday.

Under the truce, neither company will solicit any proxies from CanniMed shareholders, solicit an alternative transaction or enter talks about an alternative deal.

In addition, Aurora will not acquire direct or indirect control of any additional CanniMed shares and CanniMed won't make changes to its Nov. 24 offer for Newstrike.

The Tragically Hip, a major shareholder in Newstrike, has thrown its support behind CanniMed's takeover bid.