Stocks of licensed pot producers MedReleaf, Aurora halted, pending news
MediJean cannabis plant care technician Misad Shazi sprays water on marijuana plants growing at the medical marijuana facility in Richmond, B.C., on Friday March 21, 2014. (Darryl Dyck/ THE CANADIAN PRESS)
The Canadian Press
Published Thursday, May 3, 2018 11:25AM EDT
Last Updated Thursday, May 3, 2018 1:35PM EDT
MedReleaf Corp. and Aurora Cannabis Inc. shares were halted on Thursday afternoon, pending news.
The trading halts of the licensed medical marijuana producers' stocks comes after The Globe and Mail reported that MedReleaf was seeking a buyer, according to sources.
The Globe also cited a source saying Edmonton-based Aurora had submitted a friendly offer to acquire the Markham, Ont.-based cannabis firm.
Aurora said it does not comment on speculative media reports.
"The Company does confirm that it engages in discussions with industry participants from time to time, including MedReleaf," Aurora said in a statement on Thursday afternoon. "At this time the Company confirms there is no agreement, understanding or arrangement with respect to any transaction with MedReleaf."
Consolidation in the Canadian marijuana sector has been accelerating as the country prepares to legalize cannabis for recreational use later this year.
Aurora on Tuesday completed its acquisition of Saskatoon-based licensed producer CanniMed Therapeutics after striking a $1.1 billion stock-and-cash deal in January.
In February, rival licensed producer Aphria Inc. completed its acquisition of B.C.-based Broken Coast Cannabis Inc., a transaction valued at more than $200-million in stock and cash.