In a statement on Monday, Curaleaf rejected Aurora’s assertions of inaccuracies in its unsolicited bid and accused the Canadian firm of using selective metrics to deflect from years of underperformance.

  • Earlier on Monday, Aurora alleged that Curaleaf’s bid appears to contain inaccurate statements about Aurora's business and should be viewed skeptically.
  • Curaleaf said Aurora has failed to deliver a credible turnaround.
  • Earlier this month, Curaleaf announced that it had formally commenced its previously announced proposal to purchase all issued and outstanding common shares of Aurora.

Shares of Aurora Cannabis Inc. (ACB) drew investor attention on Monday as it sparred with Curaleaf Holdings, Inc. (CURLF) over the latter’s unsolicited takeover bid for the company.

Curaleaf Hits Back On Value Creation Claims

In a statement on Monday, Curaleaf rejected Aurora’s assertions of inaccuracies in its unsolicited bid and accused the Canadian firm of using selective metrics to deflect from years of underperformance.

Curaleaf said Aurora has failed to deliver a credible turnaround, citing more than C$400 million in inventory impairments and transformation costs, a roughly 35% share decline over the past year through August 10, and recent drops in international revenue and adjusted core profit.

The company reiterated its offer of an implied US$4 per Aurora share, calling it a substantial premium. Curaleaf insisted it has not held substantive deal talks, despite Aurora’s claims of engagement since June, and said Aurora refused an NDA and site visits. It remains open to meeting at any time to discuss a deal, the firm said.

Aurora Defends Strategy And Inflection Point

Earlier, Aurora highlighted what it called inaccuracies in Curaleaf’s bid announcement, particularly on cultivation metrics, and urged shareholders to take no action while a special committee reviews the proposal. CEO Miguel Martin described the timing as an attempt to pressure shareholders into a short-term decision that benefits Curaleaf, arguing Aurora is at a “pivotal inflection point” after three years of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), accelerating international sales and UK expansion. He further added that Curaleaf seeks Aurora’s EU-GMP infrastructure at a low price. 

Curaleaf’s Offer

On August 18, Curaleaf announced that it had formally commenced its previously announced proposal to purchase all issued and outstanding common shares of Aurora.

The firm said Aurora shareholders would receive total implied consideration of $4 per Aurora common share, comprising 0.3463 of a Curaleaf subordinate voting share plus $0.75 in cash.

“By combining Aurora with Curaleaf, we can create the preeminent, scaled industry leader with significant opportunities for long-term growth and value creation,” Curaleaf CEO Boris Jordan said. The offer remains open for at least 105 days from launch.

ACB shares lost nearly 7% year-to-date while CURLF shares have gained around 28% during the period.

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