Aurora Cannabis (NYSE:ACB) and Aphria (NASDAQ:APHA) jumped after news their merger talks have gone up in smoke.
The merger of the medical marijuana companies would have created a C$3.5 billion ($2.6 billion) firm before talks broke down last week, BNN Bloomberg television reported.
The companies failed to agree on board composition and compensation for executives, BNN Bloomberg reported, citing two people familiar with the matter. Executives had agreed that Aphria shareholders would control about 51% of the combined entity through a share-swap deal while Aurora shareholders would own the rest, BNN Bloomberg said. Aphria Chief Executive Officer Irwin Simon was set to become CEO.
A merger would have created a company with operations in 25 countries and combined annual revenue above C$800 million, with a 30% share of the Canadian recreational cannabis market, BNN Bloomberg said.
Aurora has jumped from under C$1 in May to about C$16.88. Shares are up about 5% on Wednesday. Aphria has more than doubled to about C$4.95 since March. Shares are up 7%.
Published: July 15, 2020
The post Pot Deal Goes Up in Smoke For Aphria and Aurora Cannabis appeared first on L.A. Cannabis News.
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