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Canada's first vertically integrated cannabis company is well positioned to be one of the world's largest private sector cannabis retailers by the end of 2018
TORONTO, June 25, 2018 /CNW/ - Hiku Brands Company Ltd. (CSE: HIKU) ("Hiku" or the "Company") is pleased to provide an update on the approach to retailing of cannabis in Manitoba. Hiku, and our retail storefront brand Tokyo Smoke, with participation by the founders of BOBHQ, a long time Manitoba retailer, was awarded one of only four conditional master licenses to operate stores in Manitoba in conjunction with an e-commerce portal.
Hiku is pleased to announce that it has been granted permission for ten stores by the Province of Manitoba. Four of the stores will be located in Winnipeg and one in Brandon, all of which will be opened under our award-winning cannabis retail brand Tokyo Smoke, winner of Cannabis Brand of the Year at the 2017 Canadian Cannabis Awards.
"We are very pleased to be continuing to build community through our branded Tokyo Smoke retail stores in the province" said Alan Gertner, Chief Executive Officer of Hiku. "Customers in Manitoba will be able to visit our engaging retail storefronts in best in class retail hubs and shopping districts as we work to open our experiential, engaging environments over the coming months" he added. Further, Mr. Gertner noted "We are very thankful to the province and government of Manitoba for entrusting us with this important work, and excited to bring a first in class retail experience to Manitoba and the rest of Canada."
Robert Ritchot of BOBHQ, Hiku's Manitoba-based retail partner noted "After over two decades focused on providing a diverse range of ancillary cannabis products to many of the communities throughout the province we look very much forward to providing cannabis products in the same responsible, community conscious manner necessary to earn the respect and trust of those same communities."
Consumers are becoming increasingly intentional with the choices they make, all with the purpose of living life on their terms. Similarly, cannabis consumption is changing from being one of availability to one that is more meaningful, matched to each individual consumer.
Hiku is actively working with various regulators, provincial and municipal governments in the Province of Manitoba to obtain the necessary permits for our proposed Tokyo Smoke stores and will ensure location specific permission prior to announcing our chosen locations.
This announcement is in addition to Hiku's announcement on June 22, 2018 on the update for Alberta retail storefronts which detailed how Hiku has filed applications for more than a dozen storefronts in Calgary and are at the top of the list to be considered in each of those locations following Calgary's first come, first serve approach to licensing. In addition to Calgary, Hiku has also filed applications in Edmonton for its random lottery process.
As previously announced, Hiku has also entered into a letter of intent with Oceanic Releaf Inc. ("Oceanic"), a late stage applicant under the ACMPR in Newfoundland & Labrador, pursuant to which Oceanic and Hiku are working with the government on the approval for Oceanic of up to 5 additional stores in that province.
Hiku is focused on building a portfolio of engaging cannabis brands, unsurpassed retail experiences and handcrafted cannabis production. With a national retail footprint led by Tokyo Smoke, craft cannabis production through DOJA's ACMPR licensed grow, Van der Pop's female-focused educational platforms, and MaiTri, our Quebec based cannabis brand featuring high quality handmade accessories. Hiku houses an industry-leading portfolio that aims to set the bar for cannabis brands in Canada.
Hiku's wholly-owned subsidiary, DOJA Cannabis Ltd., is federally licensed to cultivate and sell cannabis pursuant to the ACMPR, owning two production facilities in the heart of British Columbia's Okanagan Valley. Hiku's subsidiary, TS Brandco Holdings Inc. ("Tokyo Smoke"), has been conditionally awarded one of four master retail licenses in Manitoba. Hiku also operates a network of retail stores selling coffee, clothing and curated accessories, across British Columbia, Alberta and Ontario.
Hiku has entered into a transformational transaction with WeedMD Inc. ("WeedMD") (TSX:V – WMD) to merge the two companies. The transaction combines a premium cannabis brand house and retail focused operator in Hiku, with the significant production capabilities and differentiated medical brand in WeedMD as a well as vertically integrated operations over the entire cannabis value chain with coast-to-coast and diversified cannabis cultivation platform with four facilities, and planned expansion capacity to have the ability to produce over 56,000 kg by mid-2019. The transaction is subject to a WeedMD shareholder vote scheduled for July 11, 2018 as well as applicable stock exchange approval.
Forward Looking Statements
This news release contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Hiku's actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Forward-looking statements in this press release include, among others, Hiku being one of the world's largest private sector cannabis retailers, the location of Hiku's stores in the Province of Manitoba, final government approval for such stores, the approval of Hiku's Alberta storefront applications, the timing of such applications being considered, the completion of the proposed transaction with Oceanic, the completion of the proposed transaction with WeedMD, applicable stock exchange approval of the transaction with Oceanic, applicable stock exchange approval of the transaction with WeedMD Inc., and the federal government's legalization of adult-use cannabis. By their nature, forward-looking statements are based on the opinions and estimates of management at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Hiku is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
It is noted that Hiku's proposed transaction with Oceanic is subject to applicable stock exchange approval. It is also noted that in this news release, BOBHQ refers to 10003983 Manitoba Ltd. (d/b/a BOBHQ).
The Canadian Securities Exchange has not approved nor disapproved the contents of this news release.
SOURCE Hiku Brands Company Ltd.
For further information: Will Stewart, Vice-President, Corporate Communications & Public Affairs Hiku Brands, 416-899-9422, [email protected]