Organigram offers C$7.80 a share for Aurora Cannabis with BAT backing

Organigram Global has agreed to acquire Aurora Cannabis at C$7.80 (US$5.54) per share, a price that values Aurora at about C$561 million (US$398.3 million) on a fully diluted equity basis, according to the company’s announcement. The offer carries a 93% premium to Aurora’s share price on 10 August, before the bid, and a 21% premium to Curaleaf’s unsolicited hostile takeover bid, which Aurora’s board rejected unanimously.

British American Tobacco funds the cash leg and locks in its vote

BAT, which holds 30% of Organigram’s voting rights through its indirect subsidiary BT DE Investments Inc., has agreed to put C$187.5 million (US$133.1 million) into Organigram through a private placement of 141 million shares at C$1.33 (US$0.94) each. Organigram says the proceeds will help finance the cash portion of the offer. BAT has also signed an irrevocable voting agreement in favour of the transaction.

Aurora shareholders can choose cash, Organigram shares, or a mix of both, subject to proration. Organigram expects the deal to close in January 2027, and it still needs shareholder, regulatory and court approvals.

Aurora holders end up with a minority stake and a strong voice

Under the proposed structure, Aurora shareholders would hold roughly 35% of the economic ownership of the combined business but 42% of its voting rights. The gap means current Aurora investors would be a minority by value while retaining more influence than that stake would normally carry. BAT’s existing 30% voting position in Organigram sits alongside this arrangement.

The combined company would run five production and distribution sites certified to EU-GMP, the European Union’s good manufacturing practice standard for medicinal products. Organigram expects the combination to generate more than C$50 million (US$35.5 million) in synergies.

Closing in January 2027 depends on three approvals

The transaction is not yet complete. Organigram has set January 2027 as its expected closing date, conditional on Aurora and Organigram shareholder votes, regulatory clearance and court approval. Until those steps are taken, the offer remains an agreed deal rather than a completed one.

For cannabis producers and their suppliers, the deal would consolidate two licensed operators and hand BAT a larger indirect position in the sector without it buying Aurora directly. For investors holding Aurora stock, the headline premium is the number to watch, but the actual return depends on how much of the consideration arrives as cash rather than Organigram shares, and on proration.

What happens next is the shareholder vote and the court process scheduled to precede the January 2027 target. A key test will be whether the C$187.5 million BAT placement is subscribed on the stated terms, since those proceeds underpin the cash element of the offer.

Questions readers ask

What would Aurora shareholders receive?

They can elect cash, Organigram shares, or a combination, subject to proration. The offer is set at C$7.80 (US$5.54) per Aurora share.

When is the Organigram-Aurora deal expected to close?

Organigram expects the transaction to close in January 2027, pending shareholder, regulatory and court approvals.