OSC cease-trades CanniMed rights plan, orders Aurora to amend disclosures

The Ontario Securities Commission has issued a cease-trade order for any securities issued by CanniMed Therapeutics Inc. as a defence against a hostile takeover by Aurora Cannabis Inc. 

The OSC is also ordering Aurora to amend its take-over bid circular and related press releases to include certain information that could affect CanniMed's shareholders when they decide to accept or reject the offer.

Among other things, Aurora is ordered to disclose how it became aware that CanniMed's board would meet on Nov. 13 to consider an agreement to buy Newstrike Resources Ltd. 

The OSC said it denied other relief sought by Aurora, CanniMed and a special committee of CanniMed's board.

The order — dated Dec. 22 but released Wednesday — was made following a joint hearing last week involving the Saskatchewan and Ontario securities commissions.

CanniMed argued that Aurora worked jointly with some of its shareholders, a position disputed by Aurora. One of its conditions was that CanniMed abandon its plan to buy Toronto-based Newstrike.