DOJA Cannabis and Tokyo Smoke Announce Signing of Definitive Business Combination Agreement
Further to their joint news release dated December 21, 2017 (see here), DOJA Cannabis Company Limited (“DOJA”) (CSE: DOJA) and TS Brandco Holdings Inc. (“Tokyo Smoke”) are pleased to announce the signing of a definitive business combination agreement effective as of January 17, 2018 (the “Agreement”), whereby DOJA will acquire all of the issued and outstanding securities of Tokyo Smoke by way of a three-cornered amalgamation (the “Merger”). Closing of the Merger is expected to occur on or about January 30, 2018. Upon completion of the Merger, DOJA anticipates changing its name to Hiku Brands Company Ltd. (“Hiku”) to refer to the brand house, including premium cannabis lifestyle brands DOJA, Tokyo Smoke, and Van der Pop and changing its ticker symbol to “HIKU”.
The merger of DOJA and Tokyo Smoke creates the first brand and retail-focused, craft cannabis producer, with a portfolio of highly recognizable brands. Hiku is strategically positioned to become the preeminent cannabis brand house in the Canadian adult-use cannabis market.
Upon completion of the Merger, Hiku will have a strong balance sheet, with a cash position of approximately $31 million, which Hiku plans to invest in expanding its cannabis production capacity, growing its retail footprint, and adding select brands to its portfolio through highly strategic and complementary acquisitions.
Aphria Inc.’s (“Aphria”) (TSX: APH) (OTCQB: APHQF) $10 million equity investment in Hiku, demonstrates Aphria’s commitment to native BC cannabis and its leadership in the recreational market. Hiku looks forward to the opportunity to supply all Aphria’s brands in Hiku-owned retail (where licensed and available).
Completion of the Merger is subject to the receipt of all requisite regulatory approvals, including the approval of the Canadian Securities Exchange and the approval of Tokyo Smoke’s shareholders and standard closing conditions.
A copy of the Agreement will be made available under the Resulting Issuer’s profile on the SEDAR website at www.sedar.com.
About DOJA
DOJA™ is a premium cannabis lifestyle brand growing high-quality handcrafted cannabis flower. DOJA’s wholly owned subsidiary is a licensed producer of cannabis under the ACMPR that has requested its Pre-Sales License Inspection, the last step prior to receiving a license to sell cannabis under the ACMPR. DOJA’s state-of-the-art ACMPR licensed production facility is located in the heart of British Columbia’s picturesque Okanagan Valley. DOJA was founded by the proven entrepreneurial team that started SAXX Underwear®.
About Tokyo Smoke
Founded in 2015 by Alan and Lorne Gertner, Tokyo Smoke is an award-winning cannabis lifestyle brand that brings sophistication and design to the fast-growing industry. With immersive experiences and design-first, non-dispensary retail spaces selling coffee, cannabis accessories and design products, the brand has six locations in Canada, with plans to expand nationwide. Recently named “Brand of the Year” at the Canadian Cannabis Awards, Tokyo Smoke has showcased excellence in brand storytelling, and has developed an international reputation as the go-to destination for engaging content offerings within the industry. With the acquisition of fellow designer cannabis brand Van der Pop, and by partnering with Aphria Inc. (TSX: APH) (OTCQB: APHQF) and WeedMD (TSX VENTURE: WMD), Tokyo Smoke continues to be the leading Canadian brand in the cannabis space.
About Hiku
Upon completion of the Merger, Hiku will be focused on handcrafted cannabis production, immersive retail experiences, and building a portfolio of iconic, engaging cannabis lifestyle brands. Hiku will be differentiated as the only Canadian craft cannabis producer with a significant national retail footprint and a growing brand house including premium cannabis lifestyle brands DOJA, Tokyo Smoke, and Van der Pop.
Hiku’s wholly-owned subsidiary, DOJA Cannabis Ltd., is a federally licensed producer pursuant to the Access to Cannabis for Medical Purposes Regulations, owning two production facilities in the heart of British Columbia’s Okanagan Valley. Upon completion of the Merger, the company will operate a network of retail stores selling coffee, clothing and curated accessories, across British Columbia, Alberta and Ontario.
For more information, please visit www.hiku.com
About Aphria
Aphria Inc., one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada. Aphria is truly powered by sunlight, allowing for the most natural growing conditions available. Aphria is committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders.
