Pot stock Cann Group’s major shareholder wants to buy it out

Cann Group has confirmed to the market that its major shareholder Aurora Cannabis is keen to buy it.

After media reports that the Canadian company was sniffing around and an ASX query, Cann told the market that it first started talking to its major shareholder about a takeover on April 21.

The company has confirmed that it has been in preliminary talks with Canada’s Aurora Cannabis about a bid.

It said the offer was incomplete.

In a prior interview in early April, Cann chief Peter Crock dismissed the possibility of an early takeover, telling Stockhead that they wanted to grow the company themselves.

Media reports peg Aurora’s offer to around $4.50 a share — but all in scrip. Cann (ASX:CAN) shares peaked at $3.85 after the news broke.

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Aurora is Canada’s second largest medical cannabis company, worth about $C4.5 billion on the Toronto Stock Exchange.

It is also the second to list in Canada, after Canopy Growth (which has a large shareholding in Aussie no. 2 AusCann).