Curaleaf Holdings Inc. says it plans to raise its proposed offer for rival Aurora Cannabis Inc. to US$5 per Aurora share, after Aurora rejected an earlier bid. The Stamford, Conn.-based company said the new proposed consideration would include 0.4013 Curaleaf shares and US$1 in cash, calculated using Curaleaf’s closing share price on Oct. 2.

Curaleaf said it is increasing the proposal to demonstrate its intent to negotiate in good faith and make the case for combining the cannabis businesses. Its summer bid valued Aurora shares at US$4 each, consisting of 0.3463 Curaleaf subordinate voting shares and 75 cents in U.S. cash, based on Curaleaf’s Aug. 10 closing price.

Aurora, based in Edmonton, urged shareholders to reject that initial hostile takeover offer. The company said the bid undervalued Aurora and was not in shareholders’ best interests.

“Today’s announcement by Curaleaf is not a formal revised bid, and Aurora has not yet received the materials required to conduct a full and proper evaluation,” Aurora chief executive Miguel Martin said in a news release. “While the announcement suggests an intention to address concerns Aurora identified with Curaleaf’s initial Hostile Bid, the Special Committee of independent directors will review any formal revised offer once received with the same rigorous, independent and disciplined process applied previously.”

Curaleaf’s latest announcement does not constitute a formal revised bid. Aurora’s independent-director special committee will assess any revised formal offer if it receives one.

Based on reporting by Global News Edmonton.