Toronto, Canada – Canadian company Hiku Brands Company Limited, Canada’s first vertically-integrated cannabis brand house announced on Tuesday that it has signed a letter of intent with Kaya Inc., a licensed medical cannabis producer and dispensary operator in Jamaica, as part of a strategic alliance to pursue medical and adult-use cannabis branding, genetics, and retail opportunities both in Jamaica and Canada.
Under the Letter of Intent, Hiku intends to make a strategic investment in Kaya to acquire up to 10% ownership on a fully diluted basis, enter into mutual licensing agreements to leverage Hiku’s brands in Jamaica and Kaya’s brand in Canada, work together to explore import and export opportunities for cannabis genetics, and develop co-branded retail stores and cannabis lounges in the Caribbean.
This is an incredible opportunity for Hiku to tap into Jamaica’s world-renowned cannabis community and take our retail and branding expertise global. We’re excited to start working with the Kaya team and have been thoroughly impressed by their knowledge and passion. The Hiku team is excited to share in Kaya’s vision to provide an authentic-to-Jamaica cannabis retail experience, properly showcasing the amazing cannabis genetics produced by their sister-company, Ganja Labs. Jamaica has such a deep and rich history with cannabis and we are fortunate to be able to participate in and learn from that history. – Alan Gertner, CEO of Hiku.
This announcement comes on the heels of Kaya Farms announcement that under the supervision of Augustus Staples, interim Chief Executive Officer of the Cannabis Licensing Authority (CLA), they had harvested the first batch of marijuana grown legally in Jamaica. The newly harvested plants will be cured and trimmed before being sent on to Kaya Herbhouse, the company’s first retail establishment, and Everything Oily, who will process the plants into oil-based medicines.
Hiku intends to enter into a subscription agreement with Kaya whereby Hiku will make an initial investment of $250,000 CAD and intends to make a secondary investment concurrent with an equity financing by Kaya that would bring Hiku’s total ownership to 10% on a fully diluted basis post-financing.
Kaya and Hiku will work with the Cannabis Licensing Authority to ensure compliance with the CLA’s international ownership framework.
Press release provided by Hiku Brands Company Limited. Full release can be accessed here.