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.