The Index fell 1.06 points, or 0.50 percent to finish out the day at 211.68, with the United States Marijuana Index falling 0.37 percent and the Canadian Marijuana Index dropping 0.51 percent.
According to a statement released by both companies, Hiku shareholders will receive the equivalent of CAD$1.91 per Hiku Share, which represents a 33 percent premium based on recent trading prices. The real benefit of the deal, however, is in branding, especially considering the Canadian market is quite strict with their advertising and packaging laws.
"Hiku equals brands. Canopy is built on brands. So we combined them," said Bruce Linton, Chairman, and CEO of Canopy Growth, speaking in haiku in his statement.
Of course, Hiku shareholders also gain immediate access to what both companies call enhanced liquidity, with Canopy trading on both the Toronto and New York Stock Exchanges. As Alan Gertner, the Chief Executive Officer of Hiku said in a statement: "This Transaction represents an incredible step in the Hiku journey that both realizes immediate benefits for our shareholders and at the same time provides an unparalleled opportunity to join forces with a preeminent global cannabis player.” Hiku shareholders are expected to vote on the deal during a special meeting in August.
Meanwhile, Wall Street had a record day on Thursday as investors began looking towards earning season, which took their apparently fragile attention away from President Trump’s Trade War —a war which added $34 billion in tariffs on China last Friday. Top marks from companies like PepsiCo, as well as the Consumer Staples Index sent the S&P 500 to its highest close since the calendar first turned to February.
Still, on Tuesday the President also announced a list of tariffs on $200 billion worth of Chinese goods, a response to Beijing’s initial retaliation to Friday’s tariffs. New threats from the White House could have the back-and-forth going up to as much as $500 billion, putting both the economy and many jobs at risk.
"For many years, China has pursued abusive trading practices with regard to intellectual property and innovation," U.S. Trade Representative Robert Lighthizer said Tuesday in a statement.
He added: “This is an appropriate response under the authority of Section 301 to obtain the elimination of China’s harmful industrial policies.”
The Dow Jones Industrial Average rose 143.07 points, or 0.58 percent, to finish the day at 24,919.66, while the S&P 500 rose 9.67 points, or 0.35 percent, to end the day at 2,793.84. Finally, the Nasdaq Composite rose 3.00 points, or 0.04 percent, to close out Tuesday at 7,759.20.
Joining in on the fun is Organigram Holdings Inc. (TSX-V:OGI) (OGRMF) who announced on Tuesday a three-year deal to supply Hiku with 1000 kg of cannabis per year. Both dried cannabis and oils will be sold to the company, which will retail at various Tokyo Smoke locations throughout Manitoba. Organigram's 2017 Canadian Cannabis Award-winning sativa Wabanaki is one of the highlighted strains included in the deal.
"Organigram and Hiku share a deep commitment to exceptional quality and innovative products," said Greg Engel Organigram’s CEO in a statement released Tuesday. "As we move towards a legal, adult recreational use cannabis market, we are proud to be affiliated with companies and brands with a clear and demonstrated focus on their customers and a first-class customer experience."
Canadians looking to participate in the legal marijuana economy will need to know all about the licensing required by the government. Currently, Canada lists three levels of licensure to enter the cannabis market, Cultivation, Processing, and Sales. Take a look at the following infographic from Health Canada to learn all that it takes to join the Canadian cannabis supply chain.