Article content continued

CanniMed, which began trading a year ago, employs around 200 people at its growing facility southeast of Saskatoon. The facility is in the midst of a $10.5-million expansion aimed at boosting cannabinoid oil production.

Aurora Cannabis Inc., which is headquartered in Vancouver and has significant operations in Alberta, launched its hostile takeover bid last month after CanniMed’s board rebuffed what it called an “unsolicited offer.”

The larger company controls around 38 per cent of CanniMed’s stock through shareholder “lock-up” agreements, of which 23 per cent is owned by two Saskatchewan-based venture capital funds: Golden Opportunities Fund Inc. and Saskworks Venture Fund Inc.

Aurora says it will continue operating and expanding CanniMed’s facility if its bid is successful, while CanniMed is urging shareholders to reject the deal and support its proposed acquisition of Newstrike Resources Ltd., a marijuana firm backed by the Tragically Hip.

In the letter sent to MLAs, Zettl questioned the two venture capital funds’ decision to back Aurora’s takeover bid, the larger company’s track record and its “low-ball” bid for CanniMed as the country marches toward legalized marijuana.

A representative of Golden Opportunities Fund declined to comment beyond an earlier statement saying the fund is proud to have supported CanniMed for 15 years.

Saskworks president and CEO Randy Beattie said in an emailed statement that the fund is proud to have supported CanniMed for the last five years, and that it will continue to act in the best interest of its more than 28,000 shareholders.