KELOWNA, ​​BC ​​AND ​​TORONTO, ​​ON--(Marketwired - December 21, 2017) -

Two ​​Canadian ​​cannabis ​​lifestyle ​​brands ​​join ​​forces ​​in ​​a ​​transformational ​​transaction, ​​bringing ​​together industry ​​leading ​​management ​​teams, ​​British ​​Columbia ​​curated ​​handcrafted ​​cannabis ​​production, ​​a portfolio ​​of ​​visionary ​​brands ​​and ​​a ​​growing ​​nationwide ​​retail ​​footprint.



Provides ​​the ​​first ​​public ​​markets ​​investment ​​opportunity ​​focused ​​on ​​cannabis ​​retail ​​and ​​brand; high-margin ​​verticals ​​with ​​significant ​​growth ​​potential.



A ​​strategic ​​financing ​​of ​​$12.5 ​​million ​​led ​​by ​​Aphria ​​Inc. ​​will ​​bolster ​​the ​​combined ​​company's ​​cash ​​position to ​​approximately ​​$31 ​​million, ​​which ​​the ​​company ​​plans ​​to ​​invest ​​in ​​scaling ​​up ​​production ​​capacity, expanding ​​its ​​retail ​​footprint ​​and ​​further ​​building-out ​​its ​​portfolio ​​of ​​cannabis ​​brands.

Cannabis ​​Company ​​Limited ​​​("DOJA")​ ​​( CSE : DOJA )​​ and ​​TS ​​Brandco ​​Holdings ​​Inc. ​​​("Tokyo ​​Smoke​") are ​​pleased ​​to ​​announce ​​that ​​they ​​have ​​entered ​​into ​​a ​​binding ​​Letter ​​of ​​Intent ​​("LOI​ ​") ​​dated ​​December ​​20, 2017, ​​setting ​​out ​​the ​​terms ​​pursuant ​​to ​​which ​​​DOJA ​​proposes ​​to ​​acquire ​​(the ​​"​Merger​") ​​all ​​of ​​the ​​issued and ​​outstanding ​​shares ​​in ​​the ​​capital ​​of ​​​Tokyo ​​Smoke ​​(the ​​"​Tokyo ​​Smoke ​​Shares​"). ​​The ​​Merger ​​will create ​​a ​​uniquely ​​positioned ​​cannabis ​​company ​​combining ​​a ​​best-in-class ​​craft ​​cannabis ​​producer ​​with ​​an award-winning ​​lifestyle ​​brand ​​and ​​retail-focused ​​cannabis ​​company. ​​It ​​is ​​anticipated ​​that ​​the ​​combined company ​​resulting ​​from ​​the ​​Merger ​​will ​​use ​​the ​​name ​​"Hiku ​​Brands ​​Company ​​Ltd." ​​("​Hiku​" ​​or ​​the "​Company​") ​​to ​​refer ​​to ​​the ​​brand ​​house ​​containing ​​​premium ​​cannabis ​​brands ​​DOJA, ​​Tokyo ​​Smoke, ​​and Van ​​der ​​Pop.

Concurrently, ​​DOJA ​​is ​​pleased ​​to ​​announce ​​it ​​has ​​entered ​​into ​​a ​​binding ​​agreement ​​with ​​Aphria ​​Inc. ("​Aphria​") ​​​( TSX : APH ) ​​( OTCQB : APHQF ) ​​​pursuant ​​to ​​which ​​Aphria ​​has ​​committed ​​to ​​make ​​a ​​$10 million ​​strategic ​​equity ​​investment ​​into ​​Hiku. ​​Additionally, ​​the ​​parties ​​have ​​agreed ​​on ​​the ​​terms ​​of ​​a ​​supply agreement, ​​to ​​be ​​entered ​​into ​​in ​​connection ​​with ​​the ​​Merger ​​(the ​​"​Supply ​​Agreement​"), ​​to ​​secure cannabis ​​concentrate ​​supply ​​for ​​Hiku's ​​premium ​​brand ​​portfolio.

Upon ​​completion ​​of ​​the ​​Merger, ​​the ​​Company ​​will ​​have ​​a ​​robust ​​cash ​​position ​​of ​​approximately ​​$31 million, ​​which ​​it ​​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.

DOJA's ​​Board ​​of ​​Directors ​​and ​​Tokyo ​​Smoke's ​​Board ​​of ​​Directors ​​have ​​approved ​​the ​​Merger.

Highlights ​​of ​​the ​​Transformational ​​Transaction

Creation ​​ of ​​ the ​​ first ​​ retail-focused, ​​ craft ​​ cannabis ​​ producer ​​ with ​​ a ​​ portfolio ​​ of ​​ leading lifestyle ​​ cannabis ​​ brands: ​​​Hiku ​​will ​​be ​​differentiated ​​as ​​the ​​only ​​Canadian ​​craft ​​cannabis producer ​​with ​​significant ​​national ​​retail ​​presence ​​and ​​a ​​growing ​​portfolio ​​of ​​premium ​​cannabis lifestyle ​​brands ​​including ​​DOJA, ​​Tokyo ​​Smoke, ​​and ​​Van ​​der ​​Pop, ​​appealing ​​to ​​a ​​wide ​​variety ​​of consumers ​​across ​​Canada ​​and ​​globally.

​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​Hiku ​​will ​​be ​​differentiated ​​as ​​the ​​only ​​Canadian ​​craft ​​cannabis producer ​​with ​​significant ​​national ​​retail ​​presence ​​and ​​a ​​growing ​​portfolio ​​of ​​premium ​​cannabis lifestyle ​​brands ​​including ​​DOJA, ​​Tokyo ​​Smoke, ​​and ​​Van ​​der ​​Pop, ​​appealing ​​to ​​a ​​wide ​​variety ​​of consumers ​​across ​​Canada ​​and ​​globally. Well ​​ positioned ​​ to ​​ capitalize ​​ on ​​ Canada's ​​ recreational ​​ cannabis ​​ market ​​ through ​​ retail:

Hiku ​​has ​​multiple ​​highly ​​recognizable ​​brands ​​and ​​strategies ​​in ​​place ​​to ​​operate ​​retail ​​cannabis stores ​​across ​​various ​​provinces​ . ​​​Vertically ​​integrated ​​operations ​​position ​​Hiku ​​to ​​offer ​​exclusive products ​​in ​​Hiku-owned ​​stores ​​and ​​achieve ​​superior ​​margins ​​versus ​​peers.

​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ Hiku ​​has ​​multiple ​​highly ​​recognizable ​​brands ​​and ​​strategies ​​in ​​place ​​to ​​operate ​​retail ​​cannabis stores ​​across ​​various ​​provinces​ ​​​Vertically ​​integrated ​​operations ​​position ​​Hiku ​​to ​​offer ​​exclusive products ​​in ​​Hiku-owned ​​stores ​​and ​​achieve ​​superior ​​margins ​​versus ​​peers. Licensed ​​ producer ​​ under ​​ the ​​​ Access ​​ to ​​ Cannabis ​​ for ​​ Medical ​​ Purposes ​​ Regulations

(ACMPR): ​​​7,100 ​​square ​​foot ​​production ​​facility ​​licensed ​​by ​​Health ​​Canada. ​​DOJA's ​​second facility, ​​a ​​22,580 ​​sq ​​ft ​​warehouse, ​​will ​​house ​​the ​​FUTURE ​​LAB. ​​The ​​FUTURE ​​LAB ​​is ​​targeting ​​its Phase ​​1 ​​completion ​​by ​​Q2 ​​2018 ​​and ​​once ​​the ​​facility ​​is ​​fully ​​built-out ​​utilizing ​​an ​​industry ​​leading multi-tier ​​system ​​powered ​​by ​​LED ​​lighting ​​provided ​​by ​​Fluence ​​BioEngineering, ​​DOJA's ​​annual production ​​capacity ​​is ​​expected ​​to ​​be ​​in ​​excess ​​of ​​5,000 ​​kgs.

​​ ​​ ​​ ​​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​7,100 ​​square ​​foot ​​production ​​facility ​​licensed ​​by ​​Health ​​Canada. ​​DOJA's ​​second facility, ​​a ​​22,580 ​​sq ​​ft ​​warehouse, ​​will ​​house ​​the ​​FUTURE ​​LAB. ​​The ​​FUTURE ​​LAB ​​is ​​targeting ​​its Phase ​​1 ​​completion ​​by ​​Q2 ​​2018 ​​and ​​once ​​the ​​facility ​​is ​​fully ​​built-out ​​utilizing ​​an ​​industry ​​leading multi-tier ​​system ​​powered ​​by ​​LED ​​lighting ​​provided ​​by ​​Fluence ​​BioEngineering, ​​DOJA's ​​annual production ​​capacity ​​is ​​expected ​​to ​​be ​​in ​​excess ​​of ​​5,000 ​​kgs. Retail ​​ locations ​​ from ​​ Eastern ​​ to ​​ Western ​​ Canada, ​​ with ​​ plans ​​ to ​​ expand: ​​​Hiku ​​will ​​have seven ​​operational, ​​legal ​​cannabis ​​accessory ​​stores ​​with ​​locations ​​across ​​Canada ​​(Ontario, Alberta ​​and ​​British ​​Columbia), ​​representing ​​an ​​unprecedented ​​platform ​​to ​​build ​​brand ​​awareness and ​​reach ​​consumers. ​​Hiku ​​will ​​prioritize ​​retail ​​expansion ​​in ​​provinces ​​allowing ​​private ​​cannabis retail ​​and ​​Tokyo ​​Smoke ​​and ​​DOJA ​​will ​​respond ​​to ​​the ​​Government ​​of ​​Manitoba's ​​Request ​​for Proposals ​​to ​​establish ​​retail ​​cannabis ​​stores ​​throughout ​​the ​​province.

​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​Hiku ​​will ​​have seven ​​operational, ​​legal ​​cannabis ​​accessory ​​stores ​​with ​​locations ​​across ​​Canada ​​(Ontario, Alberta ​​and ​​British ​​Columbia), ​​representing ​​an ​​unprecedented ​​platform ​​to ​​build ​​brand ​​awareness and ​​reach ​​consumers. ​​Hiku ​​will ​​prioritize ​​retail ​​expansion ​​in ​​provinces ​​allowing ​​private ​​cannabis retail ​​and ​​Tokyo ​​Smoke ​​and ​​DOJA ​​will ​​respond ​​to ​​the ​​Government ​​of ​​Manitoba's ​​Request ​​for Proposals ​​to ​​establish ​​retail ​​cannabis ​​stores ​​throughout ​​the ​​province. Strategic ​​ Partnership ​​ with ​​ Aphria: ​ ​ ​​Aphria's ​​strategic ​​investment ​​into ​​Hiku ​​marks ​​Aphria's ​​first venture ​​into ​​British ​​Columbia's ​​premium ​​cannabis ​​market. ​​Combined ​​with ​​the ​​Supply ​​Agreement, the ​​partnership ​​with ​​Aphria ​​brings ​​unparalleled ​​experience ​​in ​​cannabis ​​production ​​and ​​ensures secured ​​supply ​​for ​​what ​​is ​​expected ​​to ​​be ​​a ​​supply-constrained ​​market ​​at ​​the ​​onset ​​of legalization.

​​ ​​ ​​ ​ ​​Aphria's ​​strategic ​​investment ​​into ​​Hiku ​​marks ​​Aphria's ​​first venture ​​into ​​British ​​Columbia's ​​premium ​​cannabis ​​market. ​​Combined ​​with ​​the ​​Supply ​​Agreement, the ​​partnership ​​with ​​Aphria ​​brings ​​unparalleled ​​experience ​​in ​​cannabis ​​production ​​and ​​ensures secured ​​supply ​​for ​​what ​​is ​​expected ​​to ​​be ​​a ​​supply-constrained ​​market ​​at ​​the ​​onset ​​of legalization. Led ​​ by ​​ industry ​​ leading ​​ management ​​ and ​​ team ​: ​​Hiku ​​management ​​has ​​​breadth ​​and ​​depth ​​of expertise, ​​with ​​a ​​proven ​​track ​​record ​​of ​​building ​​and ​​scaling ​​businesses, ​​including ​​SAXX Underwear ​​and ​​a ​​$100 ​​million+ ​​business ​​at ​​Google. ​​The ​​supporting ​​team ​​brings ​​expertise ​​from the ​​retail, ​​cannabis, ​​finance, ​​design, ​​marketing ​​and ​​creative ​​fields.

​​ ​​ ​​ ​​ ​​ ​​ ​: ​​Hiku ​​management ​​has ​​​breadth ​​and ​​depth ​​of expertise, ​​with ​​a ​​proven ​​track ​​record ​​of ​​building ​​and ​​scaling ​​businesses, ​​including ​​SAXX Underwear ​​and ​​a ​​$100 ​​million+ ​​business ​​at ​​Google. ​​The ​​supporting ​​team ​​brings ​​expertise ​​from the ​​retail, ​​cannabis, ​​finance, ​​design, ​​marketing ​​and ​​creative ​​fields. Well ​​ capitalized ​​ for ​​ local ​​ and ​​ global ​​ growth:​ ​Post-Merger, ​​Hiku ​​is ​​expected ​​to ​​have ​​a ​​cash balance ​​of ​​approximately ​​$31 ​​million ​​and ​​to ​​be ​​well ​​positioned ​​to ​​expand ​​within ​​the ​​Canadian market ​​and ​​enter ​​into ​​the ​​emerging ​​global ​​cannabis ​​markets.

​​ ​​ ​​ ​​ ​​ ​​ ​Post-Merger, ​​Hiku ​​is ​​expected ​​to ​​have ​​a ​​cash balance ​​of ​​approximately ​​$31 ​​million ​​and ​​to ​​be ​​well ​​positioned ​​to ​​expand ​​within ​​the ​​Canadian market ​​and ​​enter ​​into ​​the ​​emerging ​​global ​​cannabis ​​markets. Enhanced ​​capital ​​markets ​​profile: ​​​The ​​combined ​​entity ​​post-financing ​​is ​​anticipated ​​to ​​have ​​a basic ​​market ​​capitalization ​​of ​​approximately ​​$175 ​​million ​​at ​​the ​​transaction ​​price, ​​as ​​well ​​as increased ​​trading ​​liquidity ​​for ​​existing ​​and ​​prospective ​​shareholders.

DOJA ​​operates ​​a ​​cannabis ​​production ​​facility ​​in ​​British ​​Columbia's ​​Okanagan ​​Valley, ​​and ​​is ​​in ​​the process ​​of ​​building ​​FUTURE ​​LAB, ​​DOJA's ​​new ​​production ​​facility ​​to ​​be ​​located ​​in ​​Kelowna, ​​British Columbia ​​to ​​support ​​production ​​capacity ​​in ​​excess ​​of ​​5,000 ​​kg ​​per ​​year. ​​DOJA ​​also ​​operates ​​the ​​Culture Café, ​​a ​​café ​​located ​​on ​​Kelowna's ​​busiest ​​street ​​serving ​​as ​​a ​​cannabis ​​information ​​centre ​​that ​​generates brand ​​awareness. ​​With ​​the ​​addition ​​of ​​Tokyo ​​Smoke, ​​an ​​award-winning ​​lifestyle ​​brand ​​with ​​six ​​coffee ​​and cannabis ​​accessory ​​shops, ​​Hiku ​​will ​​have ​​a ​​retail ​​presence ​​across ​​Canada ​​with ​​a ​​portfolio ​​of ​​multiple recognized ​​cannabis ​​brands ​​including ​​DOJA, ​​Tokyo ​​Smoke ​​and ​​Van ​​der ​​Pop. ​​The ​​Company's ​​aggressive growth ​​strategy ​​will ​​be ​​supported ​​by ​​a ​​strong ​​balance ​​sheet, ​​positioning ​​Hiku ​​to ​​be ​​the ​​preeminent ​​craft cannabis ​​brand ​​house ​​in ​​the ​​Canadian ​​adult-use ​​cannabis ​​market.

Trent ​​Kitsch, ​​CEO ​​of ​​DOJA, ​​said, ​​"We ​​have ​​created ​​the ​​leading ​​brand ​​house ​​in ​​Cannabis. ​​Where ​​high quality ​​and ​​design ​​will ​​shape ​​the ​​Cannabis ​​Future. ​​I ​​am ​​confident ​​Hiku ​​will ​​be ​​trusted ​​by ​​consumers ​​to design ​​better ​​customer ​​experiences ​​and ​​products, ​​resulting ​​in ​​greater ​​market ​​share. ​​Tokyo ​​Smoke's experienced ​​management ​​team ​​has ​​proven ​​its ​​ability ​​to ​​build ​​and ​​acquire ​​respected ​​cannabis ​​brands ​​and create ​​brand ​​awareness ​​in ​​a ​​difficult-to-navigate ​​regulatory ​​environment. ​​We ​​see ​​leveraging ​​those ​​skills and ​​their ​​strong ​​retail ​​operating ​​abilities ​​as ​​highly ​​complementary ​​to ​​our ​​current ​​operations ​​and ​​beneficial to ​​the ​​long-term ​​trajectory ​​of ​​our ​​company. ​​The ​​combination ​​of ​​cannabis ​​production, ​​retail ​​footprint, ​​and ​​a portfolio ​​of ​​cannabis ​​brands ​​gives ​​us ​​the ​​opportunity ​​to ​​realize ​​the ​​significant ​​value ​​of ​​complete ​​vertical integration."

Alan ​​Gertner, ​​CEO ​​of ​​Tokyo ​​Smoke, ​​added, ​​"DOJA ​​is ​​an ​​incredible ​​organization, ​​team ​​and ​​brand. DOJA's ​​deeply ​​authentic ​​BC ​​story ​​combined ​​with ​​being ​​one ​​of ​​the ​​only ​​licensed ​​producers ​​that ​​have access ​​to ​​unique ​​genetics ​​through ​​an ​​import ​​license ​​creates ​​a ​​platform ​​to ​​provide ​​customers ​​an ​​unrivaled premium ​​experience. ​​Not ​​to ​​mention, ​​DOJA's ​​cultivation ​​team ​​has ​​already ​​demonstrated ​​their ​​ability ​​to deliver ​​on ​​all ​​levels ​​of ​​production, ​​including ​​quality, ​​yield ​​and ​​ensuring ​​the ​​plant's ​​fullest ​​potential ​​is expressed ​​through ​​aroma, ​​flavor ​​and ​​effects. ​​Craft ​​British ​​Columbia ​​approach, ​​top ​​notch ​​branding, ​​and retail ​​will ​​allow ​​Hiku ​​to ​​have ​​a ​​distinctive ​​business; ​​high ​​quality ​​control, ​​high ​​demand ​​and ​​high ​​margin."

"This ​​strategic ​​investment ​​in ​​and ​​supply ​​agreement ​​with ​​Hiku ​​further ​​bolsters ​​our ​​relationship ​​with ​​Tokyo Smoke ​​and ​​now ​​DOJA, ​​and ​​reaffirms ​​our ​​commitment ​​to ​​expanding ​​our ​​product ​​offering ​​ahead ​​of ​​the recreational ​​market," ​​said ​​Vic ​​Neufeld, ​​Chief ​​Executive ​​Officer ​​of ​​Aphria. ​​"This ​​transaction ​​has ​​the ​​twofold benefit ​​of ​​providing ​​us ​​access ​​to ​​strong ​​brands, ​​through ​​Tokyo ​​Smoke ​​and ​​DOJA, ​​and ​​craft-cultivated British ​​Columbia ​​bud, ​​through ​​DOJA. ​​Quality ​​product ​​and ​​recognizable ​​consumer ​​brands ​​will ​​be ​​key differentiators ​​for ​​patients ​​and ​​consumers, ​​and ​​we're ​​looking ​​forward ​​to ​​continuing ​​our ​​work ​​with ​​Hiku ​​to create ​​premium ​​cannabis ​​brands ​​in ​​Canada."

Benefits ​​to ​​DOJA ​​Shareholders

Tokyo ​​Smoke ​​owns ​​two ​​premium ​​cannabis ​​brands ​​in ​​the ​​cannabis ​​industry, ​​Van ​​der ​​Pop ​​and Tokyo ​​Smoke, ​​the ​​recipient ​​of ​​the ​​2017 ​​Canadian ​​Cannabis ​​Brand ​​of ​​the ​​Year ​​Award

Internationally ​​acclaimed ​​and ​​award-winning ​​cannabis ​​accessory ​​stores ​​with ​​locations ​​cross country

The ​​addition ​​of ​​a ​​management ​​team ​​with ​​deep ​​relevant ​​experience ​​from ​​Google, ​​Samsung, ​​Bain & ​​Company, ​​Barneys ​​New ​​York, ​​David's ​​Tea, ​​Lululemon, ​​Kit ​​& ​​Ace, ​​PharmaCan ​​Capital ​​(now Cronos ​​Group), ​​Privateer ​​and ​​Marley's ​​Natural

Completed ​​licensing ​​and ​​supply ​​deals ​​in ​​Canada

Strategic ​​investment ​​of ​​$12.5 ​​million ​​led ​​by ​​Aphria ​​and ​​including ​​Uji ​​Capital

Merger ​​Structure ​​and ​​Terms

Under ​​the ​​terms ​​of ​​the ​​Merger, ​​DOJA ​​will ​​acquire ​​all ​​of ​​the ​​outstanding ​​Tokyo ​​Smoke ​​Shares ​​in exchange ​​for ​​shares ​​of ​​DOJA ​​("​DOJA ​​Shares​").

The ​​LOI ​​currently ​​contemplates ​​the ​​parties ​​entering ​​into ​​a ​​definitive ​​agreement ​​(the ​​"​Definitive Agreement​") ​​prior ​​to ​​January ​​15, ​​2018, ​​and ​​completing ​​the ​​Merger ​​by ​​no ​​later ​​than ​​March ​​31, ​​2018, unless ​​otherwise ​​agreed ​​by ​​the ​​parties.

The ​​Merger ​​is ​​subject ​​to ​​requisite ​​regulatory ​​approvals, ​​including ​​the ​​approval ​​of ​​the ​​Canadian ​​Securities Exchange, ​​requisite ​​Tokyo ​​Smoke ​​shareholder ​​approval ​​and ​​standard ​​closing ​​conditions, ​​including ​​the approval ​​of ​​the ​​Definitive ​​Agreement ​​by ​​the ​​boards ​​of ​​the ​​respective ​​companies ​​and ​​completion ​​of ​​due diligence ​​investigations ​​to ​​the ​​satisfaction ​​of ​​each ​​of ​​the ​​parties. ​​The ​​legal ​​structure ​​for ​​the ​​Merger ​​will ​​be confirmed ​​after ​​the ​​parties ​​have ​​considered ​​all ​​applicable ​​tax, ​​securities ​​law, ​​and ​​accounting ​​efficiencies.

Based ​​upon ​​the ​​number ​​of ​​Tokyo ​​Smoke ​​Shares ​​outstanding ​​as ​​at ​​December ​​21, ​​2017, ​​if ​​the ​​Merger ​​is completed, ​​DOJA ​​will ​​issue ​​approximately ​​55.6 ​​million ​​DOJA ​​Shares ​​to ​​the ​​shareholders ​​of ​​Tokyo ​​Smoke in ​​exchange ​​for ​​their ​​Tokyo ​​Smoke ​​Shares.

Strategic ​​Financing

Aphria, ​​along ​​with ​​Uji ​​Capital ​​(collectively ​​the ​​"​Strategic ​​Investors​") ​​have ​​entered ​​into ​​binding agreements ​​with ​​DOJA ​​pursuant ​​to ​​which ​​the ​​Strategic ​​Investors ​​will ​​acquire ​​from ​​DOJA, ​​on ​​a non-brokered ​​private ​​placement ​​basis, ​​8,992,805 ​​subscription ​​receipts ​​(the ​​"​Subscription ​​Receipts​") ​​of DOJA ​​at ​​a ​​purchase ​​price ​​of ​​$1.39 ​​per ​​Subscription ​​Receipt, ​​equivalent ​​to ​​DOJA's ​​five ​​day ​​volume weighted ​​share ​​price, ​​for ​​aggregate ​​gross ​​proceeds ​​of ​​$12.5 ​​million ​​(the ​​"​Strategic ​​Financing​").

The ​​Subscription ​​Receipts ​​will ​​be ​​automatically ​​convertible ​​in​to ​​units ​​of ​​Hiku ​​(the ​​"​Units​") ​​upon ​​the satisfaction ​​of ​​certain ​​escrow ​​release ​​conditions, ​​with ​​each ​​Unit ​​comprised ​​of ​​one ​​common ​​share ​​of ​​Hiku (a ​​"​Common ​​Share​") ​​and ​​one ​​Common ​​Share ​​Purchase ​​Warrant ​​of ​​Hiku ​​(a ​​"​Warrant​"). ​​Each ​​Warrant will ​​be ​​exercisable ​​to ​​acquire ​​one ​​common ​​share ​​(a ​​"​Warrant ​​Share​") ​​for ​​a ​​period ​​of ​​two ​​years ​​from ​​the closing ​​date ​​of ​​the ​​Merger ​​at ​​an ​​exercise ​​price ​​of ​​$2.10 ​​per ​​Warrant ​​Share. ​​If, ​​following ​​the ​​closing ​​of ​​the Merger, ​​the ​​volume ​​weighted ​​average ​​price ​​of ​​the ​​Common ​​Shares ​​on ​​the ​​Canadian ​​Securities ​​Exchange is ​​equal ​​to ​​or ​​greater ​​than ​​$3.05 ​​for ​​any ​​twenty ​​(20) ​​consecutive ​​trading ​​days, ​​Hiku ​​may, ​​upon ​​providing written ​​notice ​​to ​​the ​​holders ​​of ​​the ​​Warrants, ​​accelerate ​​the ​​expiry ​​date ​​of ​​the ​​Warrants ​​to ​​the ​​date ​​that ​​is 30 ​​days ​​following ​​the ​​date ​​of ​​such ​​written ​​notice.

Closing ​​of ​​the ​​Strategic ​​Financing ​​is ​​subject ​​to ​​the ​​satisfaction ​​of ​​certain ​​closing ​​conditions ​​including, ​​but not ​​limited ​​to, ​​closing ​​of ​​the ​​Merger, ​​the ​​receipt ​​of ​​all ​​necessary ​​approvals, ​​including ​​the ​​approval ​​of ​​the Canadian ​​Securities ​​Exchange.

Management ​​Team

The ​​proposed ​​management ​​team ​​of ​​Hiku ​​has ​​a ​​proven ​​entrepreneurial ​​track ​​record ​​and, ​​collectively, decades ​​of ​​experience ​​in ​​branding, ​​marketing, ​​corporate ​​strategy ​​and ​​retail ​​operations. ​​Trent ​​Kitsch, presently ​​CEO ​​of ​​DOJA, ​​will ​​become ​​President ​​of ​​Hiku ​​while ​​Alan ​​Gertner, ​​presently ​​CEO ​​of ​​Tokyo Smoke, ​​will ​​serve ​​as ​​CEO ​​of ​​Hiku.

Alan ​​Gertner, ​​CEO ​​Hiku

Alan ​​Gertner ​​is ​​most ​​recently ​​the ​​co-founder ​​of ​​Tokyo ​​Smoke, ​​an ​​award ​​winning ​​cannabis ​​brand ​​created in ​​2014. ​​He ​​built ​​Tokyo ​​Smoke ​​from ​​the ​​ground ​​up ​​into ​​a ​​full ​​scale ​​organization ​​with ​​internationally recognized ​​brands ​​and ​​a ​​cross ​​country ​​network ​​of ​​retail ​​stores. ​​Previously, ​​​Alan ​​spent ​​six ​​years ​​at Google, ​​initially ​​on ​​Google's ​​first ​​Global ​​Business ​​Strategy ​​team, ​​then ​​leading ​​a ​​$100 ​​million+ ​​revenue organization ​​in ​​Asia ​​Pacific. ​​Alan ​​was ​​formerly ​​a ​​Management ​​Consultant ​​at ​​Oliver ​​Wyman ​​in ​​New ​​York and ​​graduated ​​Dean's ​​list ​​from ​​the ​​Richard ​​Ivey ​​School ​​of ​​Business. ​​​He ​​brings ​​more ​​than ​​15 ​​years ​​of strategy, ​​marketing ​​and ​​executive ​​experience ​​to ​​the ​​new ​​management ​​team. ​​He ​​was ​​named ​​one ​​of ​​the Most ​​Influential ​​People ​​in ​​Toronto ​​in ​​2017 ​​as ​​recognition ​​for ​​his ​​leadership ​​in ​​the ​​Cannabis ​​industry.

Trent ​​Kitsch, ​​President ​​Hiku

Trent ​​founded ​​SAXX ​​Underwear ​​Co. ​​in ​​2007 ​​and ​​successfully ​​built ​​SAXX ​​into ​​a ​​globally ​​recognizable brand ​​and ​​the ​​fastest ​​growing ​​underwear ​​brand ​​in ​​North ​​America ​​before ​​exiting ​​the ​​business ​​in ​​2016. ​​In 2013 ​​Trent ​​and ​​his ​​wife ​​Ria ​​founded ​​Kitsch ​​Wines ​​in ​​the ​​Okanagan ​​Valley ​​which ​​has ​​quickly ​​grown ​​into an ​​award-winning ​​winery ​​with ​​a ​​unique ​​millennial ​​following. ​​The ​​ACMPR ​​application ​​and ​​conception ​​of DOJA ​​started ​​in ​​2013 ​​and ​​has ​​authentically ​​represented ​​cannabis ​​culture ​​and ​​positioned ​​DOJA ​​as ​​a leading ​​premium ​​cannabis ​​lifestyle ​​brand. ​​Trent ​​is ​​an ​​MBA ​​graduate ​​of ​​the ​​Richard ​​Ivey ​​School ​​of Business ​​with ​​a ​​major ​​in ​​Entrepreneurship, ​​and ​​recently ​​was ​​selected ​​as ​​one ​​of ​​10 ​​Ivey ​​Ambassadors ​​for Entrepreneurship.

About ​​DOJA ​​Cannabis ​​Company ​​Limited

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 ​​completion ​​of ​​its ​​Series ​​A ​​and ​​B ​​funding ​​- ​​resulting ​​in ​​approximately ​​$10 ​​million ​​in total ​​raised ​​capital, ​​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

Hiku ​​is ​​focused ​​on ​​handcrafted ​​cannabis ​​production, ​​immersive ​​retail ​​experiences, ​​and ​​building ​​a ​​portfolio of ​​iconic, ​​engaging ​​cannabis ​​lifestyle ​​brands. ​​Hiku ​​is ​​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 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.

For ​​more ​​information, ​​please ​​visit ​​​www.hikubrands.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. ​​We ​​are ​​committed ​​to ​​providing ​​pharma-grade medical ​​cannabis, ​​superior ​​patient ​​care ​​while ​​balancing ​​patient ​​economics ​​and ​​returns ​​to ​​shareholders.

CAUTIONARY ​​NOTE ​​REGARDING ​​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 ​​DOJA'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 statements regarding DOJA's expectations regarding the structure and completion of the Transaction, the terms and quantum of the Strategic Financing, the Supply Agreement, its future cash position and market capitalization, plans to expand its cannabis production capacity, its plans to add select brands to its portfolio through strategic and complementary combinations, its intent to change its name, the composition of the board of directors and management team of the combined Company, the anticipated benefits to DOJA shareholders, regulatory approvals and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks ​​include, ​​among ​​others:

that there is no assurance that the parties will obtain the requisite director, shareholder and regulatory ​​approvals ​​for ​​the ​​Transaction;

there ​​is ​​no ​​assurance ​​that ​​the ​​Transaction ​​will ​​close ​​on ​​the ​​terms ​​anticipated ​​or ​​at ​​all;

following completion of the Transaction, the combined Company may require additional financing from time to time in order to continue its operations; financing may not be available when needed or ​​on ​ ​​terms ​​and ​​conditions ​​acceptable ​​to ​​the ​​combined ​​Company;

new laws or regulations could adversely affect the combined Company's business and results of operations;

the combined Company or their suppliers may experience crop failures which could adversely affect ​​the ​​combined ​​Company's ​​business ​​and ​​results ​​of ​​operations;

fluctuations in currency and interest rates could have a negative impact on the combined Company's ​​financial ​​results, ​​and

stock​ markets have experienced volatility that often has been unrelated to the performance of companies. These fluctuations may adversely affect the price of the combined Company's securities ​​regardless ​​of ​​its ​​operating ​​performance.

When relying on the DOJA's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and risks and other uncertainties and potential events. DOJA has assumed that the material factors referred to in the previous paragraphs will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. DOJA undertakes no obligation to update these forward-looking statements in the event that management's beliefs, ​​estimates ​​or ​​opinions, ​​or ​​other ​​factors, ​​should ​​change.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED ​​IN ​​ACCORDANCE ​​WITH ​​APPLICABLE ​​LAWS.

The ​​Canadian ​​Securities ​​Exchange ​​has ​​not ​​approved ​​nor ​​disapproved ​​the ​​contents ​​of ​​this ​​news release.

NOT ​​FOR ​​DISTRIBUTION ​​TO ​​UNITED ​​STATES ​​NEWSWIRE ​​OR FOR ​​DISSEMINATION ​​IN ​​THE ​​UNITED ​​STATES