Two companies form ‘Canada’s first’ retail-focused craft cannabis producer

Two British Columbia-based marijuana companies agreed to a merger, creating what they’re billing as Canada’s first retail-focused, craft cannabis producer.

DOJA Cannabis, traded on the Canadian Securities Exchange, and Tokyo Smoke are becoming a member of forces to form Hiku Brands Company Ltd.

Under the phrases of the deal, DOJA will buy all the issued and excellent shares of Tokyo Smoke. The price ticket was not disclosed.

Once accomplished, Hiku would be the solely Canadian craft cannabis producer with a nationwide retail presence and a portfolio of premium cannabis way of life manufacturers, the companies stated in a information launch.

Aphria, certainly one of Canada’s largest medical marijuana producers, is making a 10 million Canadian greenback ($7.eight million) strategic fairness funding in Hiku.

With the funding from Ontario-based Aphria, traded on the Toronto Stock Exchange as APH, Hiku may have CA$31 million in money, which it plans to spend money on increasing manufacturing capability and nationwide retail footprint.

Tokyo Smoke, proprietor of the Van der Pop model, already has six places in Canada, and Hiku says it should prioritize retail enlargement in provinces permitting privately-owned cannabis shops.

DOJA is a licensed producer of craft medical marijuana with a 7,100-square-foot manufacturing facility. When its second facility comes on-line in mid-2018, a 22,580 square-foot warehouse, Hiku’s annual manufacturing capability might be about 5,000 kilograms per yr.

Under the deal, DOJA Cannabis will function as an entirely owned subsidiary of Hiku.

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