Committed to Making a Difference
Fundamentals
Overview:
HQ: Toronto, Ontario
Incorporated: Formerly DOJA Cannabis CO.
Symbol: HIKU .CN, DJACF
Facilities: BC and Ontario?
Exchanges: CNQ, OTC, Frankfurt
Licenses: Production and distribution
CEO: Alan Gertner
Focus:
Through a series of mergers and acquisitions, Hiku is building a business and portfolio of handcrafted cannabis brands, high end accessories, and cannabis retail stores offering engaging retail experiences. They have built these brands and a cannabis community without yet selling cannabis. Their websites offer interesting content about the cannabis lifestyle.
Size: Large
Market Cap: $195 mil
Enterprise Value: $160 mil
Size within cannabis industry: About 25th of 200+
Size among cultivators: About 20th out of about 40
Markets:
Primary: Currently, Ontario, Alberta and British Columbia.
Secondary: Eventually, all Canada, Jamaica (already has partnership there), and other markets.
Subsidiaries, Interests: Strong
Operations:
Cultivation: Neutral (low current production)
Distribution: Good
Integration/Diversification:
Vertically integrated: Yes, it will grow and produce, and distribute online and through retail stores.
Horizontally diversified: Cannabis, accessories, clothing
Financials: Weak to Neutral (little revenue yet, but will merge with WeedMD, which has more)
Management: Good
CEO: Alan Gertner, former Google executive
President: Trent Kitsch, entrepreneur, founder of SAXX underwear and Kitsch Wines
CFO: Jeff Barber, former investment banker at Canaccord Genuity Corp,
COO: Brian Polsinello, former Bain and Co. management consultant
CMO: Felicia Snyder, from Wharton, Google, Samsung
VP Creative: Berkeley Poole: Barneys, MTV
Branding: Good
Valuation: Neutral
Current share price: $1.27 was $0.975
Price to Sales: 257 (Tobacco industry = 3)
Price to Book: 1.15 (was 11.6)
EV / revenue: 211
Risks:
All cannabis stocks present lots of risk, due to the newness of the industry. There will be many companies shaken out within a year or two. This company has some extra risk because it has not generated much revenue yet. Also, its full revenue generation from production is still a year or more away. ON the p[ositive side,. It is very aggressive with mergers and just planned a merger with WeedMD, which has production and revenue.
Recommendation: Good
