Sources told Bloomberg on Tuesday that the Vancouver-based Aurora Cannabis Inc. has won the necessary support for its takeover of the Saskatchewan-based CanniMed Therapeutics Inc.
If the takeover goes through, it will be the largest marijuana deal of its sort in Canada, the anonymous sources added.
The sources spoke to Bloomberg under the condition of anonymity since the matter was considered to be private.
More than two-thirds of CanniMed shareholders so far have tendered their shares ahead of the Friday deadline, clearing the way for the takeover, the sources said.
While a representative for CanniMed didn’t return requests for comment, an Aurora spokesman said:
“We are still satisfying material conditions of the transaction and we have an outside date of March 9 and we are going to beat that.”
As the date for the nationwide legalization of marijuana looms, Canadian companies are busy cementing their power by trying to gain as much as they can from market shares through consolidation.
In January, Aphria Inc. agreed to buy Nuuvera Inc., a global cannabis company based in Brampton, Ontario, for about $826-million in cash and stock.
The news comes amid a recent volatile marijuana market.