Key Points
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Curaleaf presented an unsolicited offer to buy Aurora Cannabis for $4 per share.
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Aurora rejected the offer, saying it didn’t fully value Aurora’s business.
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Curaleaf is now trying to stop Aurora from raising capital via stock sales.
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Curaleaf (OTC: CURLF) went public with an offer to buy marijuana competitor Aurora Cannabis (NASDAQ: ACB) in early Aug. 2026. Curaleaf stated that Aurora wasn’t being responsive to private attempts to work out a deal. Aurora refuted those claims, and at this point, the relationship has only gone downhill. That’s how hostile takeovers sometimes go. Here’s what investors should watch as this one gets increasingly ugly.
Curaleaf goes public with its offer
According to Aurora Cannabis, it was responding to private acquisition discussions initiated by Curaleaf, stating that “Aurora’s lead independent director did correspond with Curaleaf’s CEO, including as recently as July 24, 2026, noting that Aurora was focused on continuing to execute on its business plan over the short to medium term, and did not discourage an ongoing dialogue between the parties going forward.” That’s basically a polite brush-off, which is likely why Curaleaf decided to go public with its offer to buy its marijuana competitor.
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Curaleaf’s offer is for a mix of stock and cash, with a total value of $4 per Aurora Cannabis share. Naturally, Curaleaf believes its offer is a win for Aurora Cannabis shareholders and said exactly that in its formal offer. Aurora Cannabis didn’t see it that way and pointed out what it believed were misstatements in its early public response to Curaleaf’s offer.
Aurora Cannabis eventually recommended that its shareholders reject the offer, stating, “Curaleaf’s hostile and opportunistic bid significantly undervalues Aurora, and aims to capture Aurora’s assets at a discount.” Some key points made in the public response were that Aurora Cannabis is debt-free, whereas Curaleaf carries $1 billion in debt; Aurora Cannabis shareholders would own 7.7% of the combined company, but only have 3.2% of the voting rights; and that Curaleaf was attempting to pressure Aurora Cannabis shareholders to make a short-term decision just as Aurora Cannabis’ own investment plans were starting to show progress.
Curaleaf goes after Aurora’s funding
The companies have gone back and forth several times. But things got really ugly when Curaleaf submitted an application to the Alberta Securities Commission to stop Aurora Cannabis from raising money with an at-the-money (ATM) stock sales plan. An ATM plan basically allows a company to sell shares to raise capital as needed. It is often a very important source of funding for a business.
Curaleaf argues that whenever Aurora Cannabis sells shares at a price below Curaleaf’s offer price, it destroys shareholder value. Aurora again responded, explaining that the ATM existed before the offer and is used only when the board believes it will benefit shareholders. An example of that is Aurora Cannabis’ acquisition of Safari Flower Company, which the company highlights as demonstrating its ability to build long-term value for shareholders.
The well could be poisoned
At this point, there appears to be material animosity between the two companies. Indeed, Curaleaf’s attempt to cut Aurora Cannabis off from the capital markets is an aggressive move that could threaten Aurora Cannabis’ ability to operate. Even if Curaleaf eventually manages to acquire Aurora Cannabis, integrating the two businesses would likely be difficult from a cultural perspective after so much hostility. That said, Curaleaf needs to convince a majority of Aurora Cannabis shareholders to accept its offer, a task likely to be difficult in itself.
Curaleaf’s tender offer is open until Dec. 1, so there’s still time for the two companies to argue over the proposed acquisition. There’s also time for the two sides to come to terms, though that seems unlikely given the current state of affairs. Most investors should probably watch this drama from the sidelines and buy a diversified marijuana exchange-traded fund (ETF) instead. That said, Aurora Cannabis’ stock has risen from just under $3 per share before the unsolicited offer to roughly $4 per share, so it could make sense for Aurora Cannabis shareholders to lock in those gains. If Curaleaf’s bid fails, Aurora Cannabis’ stock price could fall back to its pre-offer levels.
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Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
