Organigram to acquire Aurora Cannabis as Foodtastic launches hostile bid for MTY Food Group

Organigram Global Inc. said it will acquire rival Aurora Cannabis Inc. for $7.80 per share, valuing Aurora at about $561 million on a fully diluted equity basis. The offer represents a 93 percent premium to Aurora’s closing price on the Toronto Stock Exchange on Aug. 10 and a 21 percent premium over Curaleaf Holdings’ hostile bid of $5 per share. In a release, Organigram said the transaction gives Aurora shareholders immediate value and the chance to participate in the growth of a combined company with a broader international footprint. Aurora’s executive chairman and CEO Miguel Martin said the deal will accelerate the company’s international growth strategy by strengthening commercial execution, expanding product and R&D capabilities, and extending its global operating network. Following the announcement, Aurora shares rose roughly 20 percent while Organigram shares fell about 8 percent.

Separately, Montreal-based Foodtastic Inc. disclosed a hostile cash offer of $43 per share for MTY Food Group Inc., a 32 percent increase over MTY’s closing price on Oct. 30. Foodtastic, which operates brands such as Pita Pit, Second Cup and Freshii, said it first presented the proposal in writing on Oct. 15 and again on Oct. 20, 2026, but was repeatedly rebuffed. In a public letter to MTY’s board, Foodtastic CEO Peter Mammas expressed disappointment that MTY rejected the proposal without substantive dialogue and argued the transaction would deliver full and certain value to MTY shareholders and create a stronger combined franchise operation. The letter also criticized MTY’s recent acquisition strategy, noting $220 million of write-downs since 2020, and suggested that taking the company private could restore focus.

MTY announced a leadership change on the same day, appointing board member Victor Mandel as chief executive, replacing Eric Lefebvre, who stepped down from the board. Analysts noted that Foodtastic’s offer is near the low end of precedent transaction values for MTY.

Other small-cap updates included mixed third-quarter results for Topaz Energy Corp., a revenue beat for 5N Plus Inc., and a earnings miss for Wajax Corp., but the primary focus of the note is the pending consolidations in the Canadian cannabis and restaurant-franchise sectors.