Article content

TORONTO — Shares of Canadian cannabis companies CanniMed Therapeutics Inc, Aurora Cannabis and Newstrike Resources rose on Monday on expectations that Aurora will buy the two smaller rivals.

Reuters on Friday reported that Aurora was in friendly talks to acquire both CanniMed and Newstrike to create Canada’s biggest marijuana producer.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or CanniMed, Aurora, Newstrike shares rise on speculation of three-way deal to create Canada’s biggest pot producer Back to video

Buying CanniMed and Newstrike would boost Aurora’s capacity to meet demand at home, as well as overseas, as more countries approve the use of medical marijuana. The deal-making and fundraising frenzy comes as marijuana companies jostle for prime position ahead of the country’s legalization of recreational use of the substance in mid-2018.

Aurora in November made a hostile bid for CanniMed, which itself has been engaged in a friendly takeover of smaller rival Newstrike. After months of fending off Aurora’s advances, CanniMed said last week the two companies were in talks, signalling an easing of tensions between the two.