Hiku Brands Company Ltd. DJACF

APH -bit more info on supply agreement

[DSEEGS]

                                                                                            
Licensing AgreementsAdditionally, included in marketable securities are investments in associates that arose from licensing agreements as per below;  
The Company’s wholly-owned subsidiary, Tokyo Smoke, entered into a supply agreement with Aphria Inc. (“Aphria”), pursuant to which Aphria is authorized to produce, distribute and sell products to consumers for and on behalf of the Company under a white label arrangement. The Company will supply accessories and packaging to Aphria who in turn will complete the packaging with their products and sell to customers under the Company’s name. As part of the agreement, the Company received 38,759 common shares in Aphria on close which was recorded as deferred revenue and will be recorded in revenue over the 6-year life of the contract.