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The dispute may have consequences for more than just the medical marijuana companies involved.

At a joint hearing Wednesday, staff for the regulators underscored that the outcome would be an important one, particularly because it tests rules regarding hostile bids that came into effect last year.

Because of this, Kate McGrann, a lawyer speaking on behalf of the regulatory staff, said that the hearing, “will have wide-ranging implications for capital market participants across the country.”

Aurora has applied to the regulators for an exemption under the new takeover regime to shrink the 105-day deposit period, which began after it made its bid, down to 35 days.

That would allow CanniMed shareholders to weigh Aurora’s offer before deciding on CanniMed’s own proposal to acquire Ontario cannabis producer Newstrike Resources Ltd.

“Without the Deposit Period Order, Shareholders will be prevented from considering the Offer and the (Newstrike) Arrangement concurrently,” Aurora’s application said.

CanniMed, however, maintains that Aurora should not get that exemption, which hinges on whether or not CanniMed’s acquisition of Newstrike is an “alternative transaction.”

Counsel for CanniMed said Thursday that the deal did not meet that definition, “a consequence of which the interest of a holder of an equity security of the issuer may be terminated without the holder’s consent, regardless of whether the equity security is replaced with another security,” the national instrument states.