Hiku’s Licensed Cannabis Producer Completes Pre-Sales Inspection and Accelerates Expansion Plans on the Back of Retail Cannabis Win in Manitoba
Hiku Brands Company Ltd. (CSE:HIKU,OTCUS:DJACF), Canada’s first vertically-integrated cannabis brand house, is pleased to announce its wholly-owned subsidiary DOJA Cannabis Ltd. (“DOJA”), a licensed cannabis producer under the Access to Cannabis for Medical Purposes Regulations (the “ACMPR”), has completed Health Canada’s (“HC”) Pre-Sales License Inspection of DOJA’s West Kelowna facility. Over a three-day period ending February 15, 2018, HC inspectors were onsite verifying information submitted by DOJA as part of its application and assessing compliance with the applicable sections of the ACMPR prior to license approval. The Pre-Sales License Inspection is the last step prior to the issuance of a Sales License under the ACMPR.
On February 16, 2018, Hiku’s wholly-owned subsidiary, TS Brandco Holdings Inc. (“Tokyo Smoke”), was conditionally awarded one of only four master retail licenses (the “License”) in Manitoba’s highly competitive Request for Proposal process for the right to operate retail cannabis stores (read more here). The License gives Tokyo Smoke the ability to operate legal retail cannabis stores and an online cannabis sales platform in Manitoba. Hiku plans on participating in future licensing processes across the country under the Tokyo Smoke and DOJA brands and growing its national retail footprint.
With the License win in Manitoba, Hiku has increased its internal forecasts for retail demand for its branded cannabis flower and oil, and as a result has decided to accelerate the build-out of DOJA’s second facility (the “FUTURE LAB”) in Kelowna, British Columbia.
With cash and marketable securities of approximately $32.6 million, Hiku is well capitalized to complete the full build-out of the FUTURE LAB and is now targeting a production license for the facility by July 2018 (previously, the Company planned to take a phased approach with an expected completion date of December 2018). True to its name, the FUTURE LAB will incorporate solar power, LED lighting, two-tier vertical farming, a state-of-the-art extraction lab and be capable of producing approximately 4,500 kg/year of dried cannabis flower. The retrofit of the 27,362 sq ft building, with 22,076 sq ft of canopy area over two-tiers, is budgeted to cost approximately $9 million.
Hiku is focused on building a portfolio of iconic, 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, and Van der Pop‘s female-focused educational platforms, Hiku houses an industry-leading portfolio that sets the bar for cannabis brands in Canada.
Hiku’s wholly-owned subsidiary, DOJA Cannabis Ltd., is a federally licensed producer pursuant to the ACMPR, owning two production facilities in the heart of British Columbia’s Okanagan Valley. The company operates a network of retail stores selling coffee, clothing and curated accessories, across British Columbia, Alberta and Ontario.
Hiku has entered into supply partnerships with Aphria Inc. (TSX: APH) (OTCQB: APHQF) and WeedMD Inc. (TSXV: WMD) to ensure Hiku’s brands will be able to scale in 2018 and beyond.
Statement Regarding Forward-Looking Information
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 document include, among others, the Company’s expectation that it will participate in future licensing processes across the country, the construction, costs and timing of the build-out of the FUTURE LAB, the production capacity of the FUTURE LAB following the proposed build-out, and the anticipated timing of receipt of a production license from HC for the FUTURE LAB. 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.
The Canadian Securities Exchange has not approved nor disapproved the contents of this news release.