Organigram to Acquire Aurora for C$7.80/Share in Cash-and-Stock Deal Valued at ~C$561M

summarizeSummary

Organigram agreed to acquire Aurora Cannabis for C$7.80 per share (cash, stock or a mix), valuing Aurora at about C$561M and topping Curaleaf's hostile bid. BAT is funding the cash side with a £100M private placement and ATB has committed up to $210M in credit facilities; shareholder votes are expected in December 2026.

check_boxKey Events · M&A and Partnerships · OGI

• Organigram to Buy Aurora for C$7.80/Share

  The all-stock-or-cash arrangement values Aurora at approximately C$561 million on a fully diluted basis, a 93% premium to Aurora's unaffected TSX close on August 10, 2026 and 21% above the implied value of Curaleaf's hostile bid as of November 2, 2026.

• Consideration Capped at 205.8M Shares and C$253.6M Cash

  Aurora holders elect C$7.80 cash, 5.8626 Organigram shares, or C$3.75 cash plus 3.0431 shares, subject to proration so aggregate consideration does not exceed 205,826,172 Organigram shares and C$253,638,772 in cash.

• BAT Funds Cash Portion With £100M Placement

  BAT will buy 141.0 million Organigram shares at C$1.33 for gross proceeds of £100,000,000 (about C$187.5 million), with any stake above 30% issued as non-voting convertible preferred shares; proceeds are restricted to funding the cash consideration and transaction expenses.

• ATB Credit Facilities Upsized to $210M

  ATB has committed senior secured facilities of up to $210 million, amending and restating the existing $70 million agreement, including a $115 million Term Tranche 2 available at closing on a certain-funds basis with a three-year maturity.

auto_awesomeAnalysis · OGI · Life Sciences

Organigram is buying Aurora Cannabis outright, roughly doubling its scale and creating a combined global medical and recreational cannabis platform with five EU-GMP facilities. The price is C$7.80 per Aurora share — a 93% premium to Aurora's undisturbed price before Curaleaf's hostile bid — and beats Curaleaf's hostile offer by 21%, which is why Aurora's board unanimously rejected the hostile bid and is recommending this deal instead. The cash half is fully funded: BAT is putting in £100M (~C$187.5M) for 141.0M new Organigram shares at C$1.33, and ATB has committed up to $210M in senior secured facilities, including a $115M term tranche drawn at closing. For Organigram holders, the trade-off is real dilution — Aurora shareholders end up with about 35% of the pro forma equity and 42% of the votes, and BAT's fully diluted stake moves from 49% to 42% — in exchange for more than C$50M of identified synergies and a much larger, more liquid company. Both shareholder votes are expected in December 2026, with closing targeted for January 2027, so the deal still has to clear the Aurora minority vote, the Organigram vote excluding BAT, German regulatory clearance and a BC court order.