Organigram Global’s C$561 Million Bid for Aurora Cannabis

By Grace Kim

Organigram Global has agreed to acquire Aurora Cannabis in a transaction valuing Aurora at approximately C$561 million on a fully diluted equity basis.

The arrangement sets Aurora shareholders’ consideration at C$7.80 per share and targets completion in January 2027, subject to shareholder, court and regulatory approvals.

Organigram and Aurora said the proposed combination unites two Canadian cannabis producers with complementary recreational and medical operations in Canada, Europe, Australia and other international regions.

What do Aurora shareholders receive?

Under the arrangement agreement, Aurora shareholders can elect one of three consideration alternatives:

• C$7.80 in cash per share.
• 5.8626 Organigram shares per Aurora share.
• C$3.75 in cash plus 3.0431 Organigram shares.

Cash and share elections will be subject to proration under the transaction agreement. The aggregate consideration will include no more than approximately 205.8 million Organigram shares and C$253.6 million in cash.

Upon completion, Aurora shareholders would hold approximately 35% of the combined company’s economic ownership and 42% of its voting rights.

Aurora investors have payout flexibility, though proration and shareholder approvals will determine the final mix.

Why did Aurora’s board back Organigram?

The C$7.80 offer represents a 93% premium to Aurora’s unaffected closing share price on August 10, 2026, before Curaleaf announced its intention to pursue a hostile takeover.

Organigram and Aurora said the proposal also represents a 21% premium to the value of Curaleaf’s competing offer, as measured by the companies in their announcement.

After a strategic review by Aurora’s independent directors, Aurora’s Board unanimously determined that the Organigram proposal was preferable to Curaleaf’s hostile offer. Aurora has recommended that shareholders reject the competing bid and support the Organigram transaction.

Organigram’s Board also approved the transaction, subject to the applicable voting and regulatory requirements.

Aurora’s directors have chosen Organigram over Curaleaf, but shareholders still have the final say in December 2026.

How is the acquisition financed?

British American Tobacco, an existing strategic investor in Organigram, is supporting the acquisition. Its subsidiary, BT DE Investments has agreed to invest approximately C$187.5 million through a concurrent private placement.

The investment involves the purchase of approximately 141 million Organigram shares at C$1.33 per share. Preferred shares may be issued in place of common shares where necessary to maintain applicable ownership limits.

Organigram is also arranging additional financing through ATB Financial. ATB has committed up to C$210 million in senior secured credit facilities, including revolving and term loan arrangements. Organigram said the facilities are intended to support the transaction while preserving financing flexibility.

BT DE Investments adds equity, while ATB provides committed credit facilities to support the purchase.

What would the combined cannabis company gain?

Organigram would contribute its Canadian recreational cannabis operations, product development capabilities and expanding European medical business. Aurora would bring an established international medical cannabis platform and manufacturing infrastructure certified to European pharmaceutical standards.

The companies expect the combination to strengthen their position in markets with established national cannabis regulations. They also expect opportunities to coordinate manufacturing across different locations and expand product distribution.

Organigram and Aurora anticipate identifying more than C$50 million in synergies through purchasing efficiencies, shared distribution, administrative savings and other operational improvements.

James Yamanaka, CEO of Organigram, said:

“This Transaction is a defining step in Organigram’s strategy to build a disciplined, global cannabis leader.

By bringing together Aurora’s established global medical cannabis platform with our Canadian operations and growing international footprint, we are creating a larger, stronger, and more diversified company.

We are excited to build on our complementary operations, expertise, capital resources, and cultures to accelerate growth, meet the growing global demand, and drive long-term profitable growth.”

Miguel Martin, executive chairman and CEO of Aurora, said:

“Combining with Organigram will accelerate Aurora’s international growth strategy by strengthening commercial execution, expanding our product and R&D capabilities, and extending our global operating network.

For Aurora’s shareholders, the Transaction is the result of a robust strategic review process and delivers compelling value today, meaningful choice in how they receive it and the opportunity to participate in the future of a leading cannabis company.”

Aurora would supply the global medical platform; Organigram would supply Canadian operations and product development.

When will shareholders vote?

Shareholder meetings are expected in December 2026. The companies anticipate completion in January 2027, subject to shareholder, court and regulatory approvals.

If approved, the acquisition would establish a larger cannabis company with expanded international distribution, manufacturing capabilities and financial resources. The decisive tests are the December 2026 shareholder votes and the court and regulatory reviews before the expected January 2027 close.