CanniMed Therapeutics Files Proxy for Newstrike Acquisition

CanniMed Therapeutics (TSX: CMED) formally launched the proxy to acquire Newstrike Resources (TSXV: HIP) (OTC: NWKRF) and its Up Cannabis licensed producer unit. Shareholders will vote at a special meeting on January 23rd. The all-stock deal would result in Newstrike shareholders receiving .033 shares of CanniMed for each share of Newstrike. If the merger is consummated, management forecasts a combined 45mm grams of production capacity by 2019.

The company also announced legal action against Aurora Cannabis (TSX: ACB) (OTC: ACBFF).  The company continues to rebuff its $24 per share acquisition offer. In today’s press release, it repeated the ironic accusation of using “inflated stock” and also deemed the bid as an “insider bid”, which would require Aurora to get a formal valuation and take other measures. The company shared its perspective of its own capabilities compared to Aurora’s:

The two companies will appear before the Ontario Securities Commission this morning.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

Get Our Sunday Newsletter