Aurora Cannabis Inc. is contemplating an acquisition offer from a U.S.-based cannabis company looking to take over the Edmonton-headquartered firm. This decision comes after Curaleaf Holdings Inc. publicly disclosed its intention to acquire all shares of Aurora.

Curaleaf aims to create a unified cannabis entity operating in 17 countries worldwide, spanning across Europe, North America, and other global markets. Despite unsuccessful private negotiations with Aurora’s leadership, Curaleaf proceeded with a formal bid. Aurora allegedly declined engaging in talks after receiving a letter of intent from Curaleaf’s CEO, Boris Jordan, on June 23, followed by a subsequent communication on July 7.

Expressing disappointment in Aurora’s lack of dialogue, Curaleaf announced its proposal to offer Aurora shareholders $4 US per share, along with an additional $0.75 US cash for each share. Aurora, however, asserts that it did not dismiss the offer outright and maintained communication with Curaleaf until at least July 24.

Aurora is now establishing a special committee of independent directors to evaluate the proposal’s merits and potential benefits for stakeholders. While highlighting the continuing operation of its business, Aurora cautions that a deal is not guaranteed. Analysts from TD Cowen believe that the current offer undervalues Aurora’s business potential, citing the company’s market leadership in medical cannabis and strong financial position.

Curaleaf’s CEO, Jordan, sees the merger as an opportunity to leverage Curaleaf’s global distribution network with Aurora’s expertise in international medical cannabis and manufacturing capabilities. The combined revenue of both companies exceeded $1.5 billion US in the last year, with Curaleaf expecting significant cost synergies from the proposed takeover.

Jordan views the merger as mutually beneficial, offering Aurora shareholders a chance to participate in a diversified global platform and benefit from favorable U.S. regulatory trends.