A takeover at the current stage of development isn’t in Aurora’s best interest and doesn’t line up with their current acquisition strategy. Meanwhile Aurora increasing their holding to over 25% would put them in a position to block any special resolution that runs contrary to their interests and to control over half of the required votes to pass ordinary resolutions. With only a small increase in their holding they can secure their investment and ensure that Cann Group operates in line with Aurora’s global strategy.
I expect serious discussion of a takeover to begin once Cann Group’s production facilities are operational, but as I said time will tell.
CAN Price at posting:
$3.51 Sentiment: Sell Disclosure: Not Held
