TORONTO , Feb. 1 2018 / CNW / – Hiku Brands Company Ltd. (“Hiku”) (CSE:HIKU) (OTC:DJACF), the first vertically integrated cannabis branding company in Canada , is pleased to announce that it has signed a letter of intent to acquire 100% of the issued and outstanding shares GroupeMaïtriInc. (“Maïtri”), a Quebec brand of cannabis accessories and design. The proposed acquisition represents Hiku’s first brand acquisition.
The acquisition of Maïtri is a key component of Hiku’s strategy to build a portfolio of iconic cannabis brands and to ensure that the varying needs of Canadian cannabis consumers are met in each province. Quebec is expected to account for more than 25% of the Canadian cannabis market, with analysts estimating that the current cannabis market is worth more than $ 1.5 billion a year in the province. Hiku understands the importance of adopting local brands and believes that Maïtri is strategically positioned to understand the Quebec market, allowing Hiku to enter the beautiful province in an authentic way.
Maïtri was founded in Montreal in 2017 by Phillippe Depault and Alexandre Lalancette . The co-founders saw the opportunity to create a brand of authentic cannabis directly to Quebec consumers. Since then, Maïtri has become a destination for modern consumers, focused on high-end cannabis accessories made in Quebec, education, innovation and community.
“We are delighted to welcome Maïtri into Hiku’s brand portfolio, which is an exciting first acquisition for Hiku and important for Maïtri’s growth in the Quebec and Canadian markets,” said Alan Gertner , Hiku’s CEO “Phil and Alex have created something special with Maïtri. They bring passion, excellence in product design, and the ability to connect authentically with consumers and build a community. We are excited to bring this beautiful brand to even more Canadians. “
“Our mission is to destigmatize the modern cannabis consumer and promote a healthy lifestyle,” said Phil Depault , co-founder of Maïtri. “Being part of Hiku is a dream come true, allowing us to work with industry leaders and an incredible management team to help grow Maïtri and spread its message of standardization, innovation and in addition to developing a Canada-wide community, while keeping our roots in Quebec deeply ingrained. “
Maïtri has already won numerous awards and achievements in his short history, including being a finalist in the “Brand of the Year” of the Canadian Lift Cannabis Awards 2017 (which was eventually won by Tokyo Smoke, Hiku). Maïtri currently sells products nationwide, and has been followed by many high profile media. Maïtri will continue to be sold throughout Canada , including all Tokyo Smoke retail stores, as well as DOJA Culture Cafes on the West Coast.
In accordance with the Letter of Intent, the shareholders of Maïtri will receive an initial consideration of $ 550,000 in a combination of cash and Hiku shares and up to 1.2 million additional shares of Hiku in bonus payments, based on certain performance milestones achieved. The completion of the proposed acquisition of Maïtri remains subject to conditions, including the conclusion of a definitive agreement.
Maïtri is a high-end cannabis lifestyle brand based in Quebec, created in 2017 by entrepreneurs Philippe Depault and Alex Lalancette . With a focus on innovation, education, locally made products and community development, Maïtri has quickly become the must-have cannabis brand for Quebec consumers. Maïtri products are sold in high-end retail outlets across Canadaand online.
Hiku focuses on artisanal cannabis production, immersive retail experiences and building an iconic and engaging lifestyle brand portfolio. Hiku differentiates itself as the only Canadian producer of artisanal cannabis with a significant national commercial footprint and a burgeoning brand company that includes the high-end DOJA, Tokyo Smoke and Van der Popbrands .
Hiku’s wholly-owned subsidiary, DOJA Cannabis Ltd., is a federally licensed producer under the RACFM, which has two production facilities in the heart of the Okanagan Valley, British Columbia. The Company operates a network of retail coffee, clothing and accessories stores in British Columbia, Albertaand Ontario .
Statement regarding forward-looking information
This press release contains statements that constitute “forward-looking statements”. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may make Hiku’s actual results, performance or achievements materially different from the expected results, performance or achievements expressed or – understood by such forward-looking statements. Forward-looking statements are statements that are not historical facts and that are generally, but not always, identified by the words “plans”, “plans”, “anticipates”, “believes”, “plans”, “estimates”, “Presumes”, “potential” and similar expressions, or that events or conditions “will”, “be”, “may”, “
The forward-looking statements in this document include statements regarding Hiku’s expectations regarding the completion of the acquisition of Maïtri and Quebec’s anticipated market for cannabis use. By their nature, forward-looking statements are based on management’s beliefs and estimates as of the date they are made and are subject to various risks, uncertainties and other factors that could make events or results different from what has been projected in the forward-looking information. Hiku has no 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 permitted by applicable law.
The Canadian Securities Exchange has not approved or disapproved the contents of this press release.
SOURCE Hiku Brands Company Ltd.
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