Curaleaf proposes a takeover of Aurora Cannabis, valuing the company at $260 million amid financial struggles and strategic expansion plans.
Curaleaf Holdings launched a takeover bid for Aurora Cannabis, offering $4 per share in a mix of cash and stock. The deal values Aurora at approximately $260 million, with a potential cap at $5 per share if Curaleaf’s stock reaches a predefined threshold. Aurora closed at $3.94 on Friday, slightly below the offer price.
Aurora has faced financial challenges, reporting a $0.07 EPS loss in Q1 fiscal 2027 and carrying $93.7 million in debt. However, its European market share and high-quality products make it an attractive target for Curaleaf, which aims to expand its global footprint and operational leverage.
The proposed rescheduling of marijuana to Schedule III could ease tax burdens for cannabis companies, potentially accelerating M&A activity in the sector. The DEA’s hearings on reclassification recently concluded, but no decision has been announced yet.