Organigram Global has agreed to acquire Aurora Cannabis in a transaction valued at approximately C$561 million, outbidding Curaleaf Holdings and its hostile takeover campaign. The agreement, announced Tuesday, November 3, values Aurora at C$7.80 per share, a 93 percent premium to its unaffected August 10 closing price and a 21 percent premium to the implied value of Curaleaf’s competing offer as of November 2.
Both companies’ boards unanimously approved the transaction. British American Tobacco, a major strategic shareholder in Organigram, is backing the deal with a C$187.5 million investment.
How did Organigram win the bidding?
Curaleaf disclosed its intention to pursue Aurora in August and revised its hostile offer on October 6. Aurora’s board rejected the proposal, arguing that it undervalued the company. Curaleaf then increased its offer by 25 percent, from $4 to $5 per share, but Aurora continued to reject it.
Organigram’s competing agreement offers Aurora shareholders three alternatives: C$7.80 in cash, 5.8626 Organigram shares, or a combination of C$3.75 in cash and 3.0431 Organigram shares for each Aurora share. Elections are subject to aggregate cash and share limits and proration. Aurora shareholders would own approximately 35 percent of the combined company’s fully diluted economic equity and hold approximately 42 percent of its voting rights.
“This Transaction is a defining step in Organigram’s strategy to build a disciplined, global cannabis leader,” said James Yamanaka, CEO of Organigram. Aurora Executive Chairman and CEO Miguel Martin said the combination would accelerate the company’s international growth strategy by strengthening commercial execution, expanding product development capabilities, and extending its global operating network.
Aurora’s board is recommending that shareholders approve the Organigram transaction and reject Curaleaf’s outstanding hostile bid. The acquisition has not yet closed, and Curaleaf’s offer remains an outstanding competing proposal. Curaleaf could reconsider its strategy or seek to improve its offer, although no further counterproposal has been announced.
The fight got heated along the way. Curaleaf accused Aurora of denying it due diligence access while potentially engaging Organigram and British American Tobacco, and challenged Aurora’s at the market share issuance program before the Alberta Securities Commission, alleging that the sales diluted shareholders. The regulator dismissed the application.
What does British American Tobacco bring to the deal?
British American Tobacco, through its investment subsidiary BT DE Investments, agreed to invest £100 million, equivalent to approximately C$187.5 million, in Organigram through a concurrent private placement. The investment will help finance the cash component of the acquisition and related transaction expenses.
Organigram has also secured commitments from ATB Financial for senior secured credit facilities totaling up to C$210 million. BAT has entered into a voting agreement supporting the acquisition and opposing competing proposals.
The financing matters because it illustrates a competitive split in the industry: companies with access to established institutional investors and financing partners may be better positioned to pursue acquisitions than competitors facing more restrictive capital markets. A multinational consumer goods company is now effectively financing consolidation in cannabis.
What would the combined company look like?
The proposed merger would create a cannabis business with approximately C$623.2 million in combined pro forma net revenue for the twelve months ended June 30, 2026. During that period, the two companies generated approximately C$80 million in combined adjusted EBITDA and C$254.4 million in gross profit before fair value adjustments.
Medical cannabis accounted for approximately 60 percent of combined revenue, with consumer cannabis representing the remaining 40 percent. That mix is significant. While Canadian recreational cannabis continues to face price competition and market saturation, international medical cannabis has become an increasingly important source of growth for Canadian producers.
Aurora has developed medical cannabis operations and distribution networks across Canada, Germany, Australia, and New Zealand. Organigram brings established Canadian recreational brands, cultivation and manufacturing operations, research capabilities, and a growing European commercial presence following its acquisition of Sanity Group. Together, the companies would operate five EU GMP certified production and distribution facilities.
Organigram and Aurora have identified more than C$50 million in potential synergies through procurement efficiencies, distribution consolidation, cross selling opportunities, and production optimization. The combined business would also be able to direct international demand toward lower cost production facilities across its network. Those savings remain subject to execution, and integrating facilities, teams, and commercial operations across multiple jurisdictions introduces real complexity.
The transaction remains subject to shareholder, court, and regulatory approvals. Shareholder meetings are expected in December 2026, with the companies targeting completion in January 2027.
For the broader industry, the takeover battle shows the increasing strategic value of internationally certified production facilities, established medical distribution networks, and access to acquisition financing. It also raises a larger question for investors: whether consolidation can deliver sustainable profitability in an industry where regulatory complexity, price competition, and financing constraints continue to shape corporate strategy.
Frequently Asked Questions
How much is Organigram paying for Aurora Cannabis?
Approximately C$561 million, valuing Aurora at C$7.80 per share. That is a 93 percent premium to Aurora’s unaffected August 10 closing price and a 21 percent premium to the implied value of Curaleaf’s competing offer as of November 2.
Why is British American Tobacco involved?
BAT is a major strategic shareholder in Organigram and agreed to invest about C$187.5 million through a concurrent private placement to help finance the cash component of the acquisition. BAT also entered into a voting agreement supporting the deal and opposing competing proposals.
Has the deal closed?
No. The transaction remains subject to shareholder, court, and regulatory approvals. Shareholder meetings are expected in December 2026, with completion targeted for January 2027. Curaleaf’s hostile offer remains outstanding in the meantime.
Source: IgniteIt, Organigram to Acquire Aurora Cannabis for C$561 Million, Outbidding Curaleaf’s Hostile Offer
Find more coverage of deals, capital, and operating decisions in Cannabis Business & Markets.