A few hiku sedar highlites Hiku Brands Company Ltd.
Assets
As at December 31, 2017 $ 22,894,071
As at March 31, 2018 $ 222,908,370
Increase in cashCash at end of period 5,735,971
As at March 31, 2018, included in the carrying amount of inventory is 140,000 grams in dry cannabis (December 2017 – 48,600).
Total assets property and equipment is 12,074,676
At March 31, 2017 $ 2,448,212
At December 31, 2017 $ 5,430,720
At March 31, 2018 $ 12,074,676
The Company’s objective in managing capital is to ensure a sufficient liquidity position to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders. The Company defines capital as net equity and debt, comprised of issued share capital and accumulated deficit, as well as mortgages payable and due to related parties.
WeedMD Inc. Merger
On April 19, 2018, the Company entered into a definitive agreement to merge with WeedMD by way of a plan of arrangement of WeedMD under the Business Corporations Act (Ontario) (the “WeedMD Transaction”), pursuant to which WeedMD shareholders will receive 1.4185 Common Shares in exchange (the “Exchange Ratio”) for each WeedMD common share held (the “WeedMD Shares”). In addition, each outstanding option and warrant to purchase a WeedMD Share will be exchanged for an option or warrant, as applicable, to purchase a Common Share, based upon the Exchange Ratio. Upon closing of the WeedMD Transaction, it is anticipated that the common shares of the pro forma resulting entity will be listed on the TSX Venture Exchange (“TSX-V”), subject to regulatory approvals.
If completed, the WeedMD Transaction will combine Hiku’s portfolio of brands, marketing and experiential retail stores with WeedMD’s scalable cannabis production capabilities, deep genetics library, and innovative research and development initiatives. Additionally, the combination brings together four indoor and greenhouse growing facilities in Ontario and British Columbia, with the option for future expansion on more than 100 acres of property at the existing sites. Current planned capacity could exceed 56,000 kg by mid-2019 upon completion of WeedMD's 610,000 square-foot greenhouse expansion at its 14 acre greenhouse facility in Strathroy, Ontario.