This small cannabis firm is fighting off a hostile takeover bid from Big Weed

CanniMed Therapeutics, a Saskatchewan-based licensed cannabis producer has rejected a hostile takeover bid from Aurora Cannabis, setting up the first in a series of potential showdowns between Big Weed and smaller producers they are attempting to acquire ahead of legalization.

If the hostile bid does end up being successful, Aurora’s market capitalization could grow to more than $3 billion, putting it on par with the biggest weed producer in the world, Canopy Growth Corporation.

On Thursday, CanniMed invoked a “poison pill”, which is a tactic that companies use to discourage hostile takeovers — Aurora will be prevented from signing any new lock-up agreements with CanniMed shareholders, effectively barring them from selling their own stock to Aurora.

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