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Aurora Cannabis surges on Organigram's higher takeover offer

By Reuters News

** US- and Toronto-listed shares of pot firm Aurora Cannabis ACB.TO rise

** Organigram OGI.TO agrees to acquire Aurora for C$7.80 per share, valuing the Canadian cannabis producer at about C$561 million ($400.77 million)

** Offer represents a 32.4% premium to Aurora's November 2 Toronto close of C$5.89 and is about 21% higher than Curaleaf Holdings' CURA.TO latest hostile bid

** Curaleaf launched its takeover attempt in August and raised its offer in October; Aurora's board rejected the bid

** US shares up 5.11% at $20.97, while Toronto-listed shares up 21.1% at C$7.13

** Aurora shareholders can receive cash, Organigram shares or a combination; they are expected to own about 35% of the combined company

** British American Tobacco BATS.L will invest C$187.5 million to help finance the deal; Organigram expects more than C$50 million in savings and additional revenue

** Shareholder votes are expected in December, with the deal targeted to close in January

** As of last close, stock up ~20% YTD


($1 = 1.3998 Canadian dollars)

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