The global Multi-State Operator (MSO) Curaleaf is fighting to avoid paying a bill in federal court while doing a hostile takeover of the global MSO Aurora.
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Fighting Millions of Dollars in Bills
They have been fighting the bill in federal court in Michigan for 5 years.
According to MJBiz Daily, Curaleaf has owed a company called Hello Farms $31.8 million. But they argued in federal court that they won’t pay because of federal marijuana prohibition.
No one should ever do business with a corporation that would work so hard not to pay a bill it owes.
Business depends on a basic level of trust.
Unpaid invoices are crippling the blossoming of the New Jersey cannabis industry.
Curaleaf Challenges Aurora’s Unilateral Rejection of Its Enhanced Proposal
Curaleaf has been very eager to take over Aurora and grow further. However, Aurora’s Board again recommended that shareholders reject Curaleaf’s enhanced proposal.
“Aurora’s Board has a fiduciary duty to shareholders, which requires it not to take illogical steps to keep the highest bidder out of the room,” their release said. “The Board has locked out Curaleaf while granting diligence access to unnamed parties and cites selective sources to support its agenda. None of that reflects a board acting in the company’s or shareholders’ best interests.”
“Shareholders deserve the facts, and the facts favor engagement, not obstruction,” said Boris Jordan, Chairman of the Board and Chief Executive Officer of Curaleaf in a release.
Incidentally, Jordan has ties to Russian President Vladimir Putin.
Facts Versus Myths in Curaleaf Versus Aurora
In a press release, Curaleaf was very unhappy that they don’t want them to take it over.
They claim it is a myth that Aurora’s process is designed to deliver the best outcome for shareholders.”
Curaleaf alleges it is a fact that “Aurora is giving others the keys while locking Curaleaf out of the building.”
“These are not the actions of a company that is serious about maximizing value for shareholders. Independent analysts agree…,” they claimed.
Curaleaf seemed very entitled throughout the release. Or unwilling or unable to take a hint.
Their own release notes that “Aurora has not engaged with Curaleaf on deal terms at any point in this process.”
They claimed it is a myth that Curaleaf continues to propose to use Aurora Shareholders’ own cash to acquire control of Aurora without paying fairly.”
Curaleaf said that “once a transaction closes, cash on the target balance sheet belongs to the combined company.”
On the other hand, Toys R Us was ruined when it was forced to take on the debt of buying itself.
In addition, Curaleaf is claiming that Aurora’s business isn’t doing well and they can save it.
According to them, “Aurora’s Special Committee is actively soliciting third-party bidders under the exact same market conditions it says make Curaleaf’s offer opportunistic.”
“Shareholders should ask why interest from other parties is framed as value-creating while Curaleaf’s is dismissed as opportunistic,” they said.
Curaleaf alleged that they are “ready to engage immediately in a constructive diligence process.”
Their aggressive rhetoric against Aurora seems to indicate they will go to great lengths to annex it.
Curaleaf Holdings Self-Description
According to their release, “Curaleaf Holdings, Inc… is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant.”
They called themselves “a high-growth cannabis company known for quality, expertise and reliability.”
They noted their brands include Curaleaf, Select, Grassroots, Find, Dark Heart, and Anthem.
“Curaleaf International is powered by a strong presence in all stages of the supply chain. Its unique distribution network throughout Europe, Canada, and Australasia brings together pioneering science and research with cutting-edge cultivation, extraction, and production. Curaleaf is listed on the Toronto Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF.”
