With today’s announcement that Aurora Cannabis (Aurora Cannabis Stock Quote, Chart, News: TSX:ACB) is successful in its friendly offer for CanniMed Therapeutics (TSX:CMED), analyst Russell Stanley of Echelon Wealth Partners reiterates his “Tender” recommendation to CMED shareholders.

On Friday, Aurora and CanniMed separately announced the success of Aurora’s offer, with the company saying that 70.66 per cent (approx. 17.8 million) of CanniMed’s shares had so far been tendered to its offer and that Aurora will now take them up, with the offer to shareholders now extended through to March 25, 2018.

“Following the take up, we will immediately commence with the integration of CanniMed into the Aurora organization and start executing on realizing the strategic synergies we have identified,” said Aurora CEO, Terry Booth, in a press release. “Combining two of the leading international cannabis brands creates a company that is exceptionally well positioned to capitalize on the tremendous opportunities in the domestic and international medical markets, as well as the Canadian adult consumer use market, once legalized.”

The deal will have ACB issue 50.6 million shares and pay $98 million in cash, with CanniMed shareholders receiving 3.4 Aurora shares or a combination of cash and shares.

In an update to clients on Friday, Stanley notes that the ACB offer implies a price for CMED of $38-$39 per share, although a specific price target can’t be derived beyond that implied value. Stanley says that CMED is now trading at a nominal one to two per cent discount to the current value of the ACB offer.

The analyst thinks that CMED will post revenue and Adj. EBITDA of $42.2 million and $5.9 million, respectively, in 2018 and $103.9 million and $43.2 million, respectively, in 2019.