Canopy Growth Corporation (TSX:WEED) (NYSE: CGC) and Hiku Brands Company Ltd. (CSE:HIKU) announced this week that the companies have entered into a definitive agreement in which Canopy Growth will acquire all of the issued and outstanding common shares of Hiku. Under the terms of the agreement investors that own shares of Hiku brands will receive 0.046 of a Canopy common share.
Over the past few years Hiku has grown its portfolio to include some of the most recognized cannabis brands in Canada. Brands such as DOJA which is a cannabis lifestyle brand located out of British Colombia; Tokyo Smoke an award winning brand that features retail coffee shops that sells cannabis accessories and design products; Van der Pop which is North Americas best recognized female- focused cannabis brands; and Maïtri
a Quebec cannabis lifestyle brand that offers hand
crafted cannabis accessories.
The acquisition provides Canopy Growth Corp. with an extensive line of new retails shops in which it can focus on the sale of its established cannabis derived branded products such as Tweed, Spectrum Cannabis, Leafs by Snoop, and DNA Genetics. The acquisitionis a significant gain for both public companies. Hiku is absorbed into one of the top public companies involved in the sector and Canopy Growth Corp. has opportunity to expand their retail operations ahead of the recreational legalization of cannabis in Canada this October.
Alan Gertner, Chief Executive Officer of Hiku gave this statement in the press release:
“This Transaction represents an incredible step in the Hiku journey that both realizes immediate benefits for our shareholders and at the same time provides an unparalleled opportunity to join forces with a preeminent global cannabis player. Ultimately, together we will continue to build one of the world’s most engaging and successful cannabis retail and brand business. Canopy is a truly special cannabis company that is well positioned to lead both in Canada and around the world.”