Curaleaf, the behemoth of a marijuana business, made a private offer to buy its smaller competitor Aurora Cannabis. In August, they made this public by announcing a hostile takeover, hoping to sway the shareholders with a high offer. Just recently, they upped the price of their offer.
Because of all of this, Aurora’s stock keeps going up. Since the initial announcement in August, their stock has risen 25%.
In August, Curaleaf’s offer was $4 a share. They just moved that up to $5. As of the writing of this article, the Aurora stock is trading at $4.29. Before the first offer, they were under $3.
It’s unclear if the shareholders will accept this offer. If they don’t, Curaleaf may raise the price even higher. So this price has the potential to keep rising, and if you were a holder in July, you may be seeing a 100% increase.
Right now the leverage is in the hands of shareholders. If they call Curaleaf’s bluff, they could see even higher returns before the end of the year.
Read the original article at Yahoo Finance.
