Canopy Growth to acquire craft marijuana retailer Hiku Brands for CA$269 million

Ontario, Canada-based Canopy Growth has inked a deal to acquire Hiku Brands, a retail-focused craft cannabis producer.

Under terms of the deal, Hiku shareholders will receive 0.046 of a Canopy Growth share in exchange for each common share of Hiku. That’s equal to 1.91 Canadian dollars ($1.46) per Hiku share, or about CA$269 million.

The agreement requires approval of at least two-thirds of Hiku’s shareholders.

Here’s what you need to know:

  • Hiku was formed when two British Columbia-based cannabis firms agreed to merge: DOJA Cannabis and Tokyo Smoke. That deal positioned Hiku as one of the first Canadian craft cannabis producers with a national retail presence and a portfolio of premium marijuana lifestyle brands.
  • The Canopy/Hiku deal overrides a previous agreement Hiku entered in May to merge with Weed MD. That deal included a “right to match” trigger that Weed MD opted to waive. In order to cancel the deal, Hiku was on the hook to pay Weed MD $10 million – money Canopy advanced the firm to cover in the form of a promissory note.

Canopy Growth, a marijuana cultivator, trades on the New York Stock Exchange under ticker symbol CGC. The firm also trades on the Toronto Stock Exchange as WEED.

One comment on “Canopy Growth to acquire craft marijuana retailer Hiku Brands for CA$269 million
  1. Maxcatski on

    Wow, ten million dollars for nothing. Wish I was Weed MD. Actually, I wish I owned a small Canadian Legal Producer so I could sell out for $250MM like Broken Coast did. That was the week after they told me they were only a small family owned operation and could not afford to honour my $100 coupon. I did not feel bad for asking when I heard the news. But I had already moved on to a new Legal Provider. Gotta love all that legal weed in Canada!

    Reply

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