NWKRF - Canopy Buys Hiku In Push To Add Adult Brands
On Tuesday, after market close, Canopy (CGC) announced that it has agreed to acquire Hiku (DJACF) in an all-stock deal that values Hiku at $308 million on a fully diluted basis. Our initial thoughts are that Canopy paid a steep price for the assets that Hiku brings to the table. Most importantly, Canopy is paying hundreds of millions for an unproven concept that is likely to face intense competition after legalization. We have seen some questionable deals out of Canopy lately, including its buyout of BC Tweed JV partner and acquisition