January 17, 2018 / 9:59 PM / a month ago

Up Cannabis-parent Newstrike's shareholders approve sale to CanniMed

(Reuters) - Newstrike Resources Ltd’s (HIP.V) shareholders approved the sale of the Canadian cannabis producer to CanniMed Therapeutics Inc (CMED.TO), which is fighting off a hostile takeover bid from fellow medical marijuana company Aurora Cannabis Inc (ACB.TO).

CanniMed has a shareholder meeting on Jan. 23 to vote on the Newstrike acquisition, which Aurora has called a “terrible deal”.

    Earlier this month, CanniMed signed a deal with Up Cannabis, which is owned by Newstrike, for the supply of raw materials in the face of rising demand as Canada prepares to legalize recreational pot.

    CanniMed has filed a $725 million lawsuit as it tries to fend off Aurora’s hostile takeover.

    (This version of the story was refiled to correct a typo in the headline)

    Reporting by Uday Sampath in Bengaluru; Editing by Savio D'Souza

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