11/14/2017 14:37 EST | Updated 11/14/2017 14:40 EST

Aurora moves to acquire rival licensed marijuana producer CanniMed

VANCOUVER — Licensed marijuana producer Aurora Cannabis Inc. (TSX:ACB) has proposed an acquisition of CanniMed Therapeutics Inc. (TSX:CMED), offering shareholders a 57 per cent premium.

The Vancouver-based company says it wants to acquire all of CanniMed's issued and outstanding shares for up to $24. CanniMed's shares closed at $15.30 Tuesday.

Aurora says it has entered into agreements with shareholders representing 38 per cent of CanniMed's outstanding shares to support its bid.

The acquisition would boost Aurora's market capitalization to more than $3 billion and would see it serve about 40,000 active registered patients.

Aurora says that it submitted a proposal to CanniMed's board of directors Monday and given the company until Friday to respond.

If the board doesn't respond, Aurora plans to launch a formal takeover bid.