Breaking News: DOJA Cannabis Closes $12.5 Million Private Placement led by Aphria

DOJA Cannabis Company Limited (OTC: DJACF) (CSE: DOJA) is pleased to announce the closing of its previously announced non-brokered private placement of subscription receipts (the "Subscription Receipts") whereby Aphria Inc. ("Aphria") (TSX:APH and US OTC: APHQF) and Koicha Partners LP acquired from DOJA an aggregate of 8,992,807 Subscription Receipts of the Company at a price per Subscription Receipt of $1.39 for gross proceeds of $12,500,001.73 (the "Offering").

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The financing supports the strategic positioning of Hiku Brands Company Ltd. ("Hiku"), the anticipated combined company resulting from the merger (the "Merger") of DOJA and TS Brandco Holdings Inc. ("Tokyo Smoke"), an award-winning lifestyle brand and retail-focused cannabis company (see DOJA's press release of December 21, 2017). The merger of DOJA and Tokyo Smoke creates the first retail-focused, craft cannabis producer, and with a portfolio of highly recognizable brands, Hiku is strategically positioned to become the preeminent craft cannabis brand house in the Canadian adult-use cannabis market.

"We're thrilled to have strategic partners in Aphria and Koicha Partners," said Trent Kitsch, CEO of DOJA. "Once the merger with Tokyo Smoke goes through, this strategic investment will strengthen Hiku, financially as well as through its brand recognition and product and market reach. Expanding Hiku's retail footprint, targeting provinces allowing private cannabis retail, and building a portfolio of recognizable consumer brands and products will be key differentiators for Hiku."

The Subscription Receipts will be automatically convertible into units of the Company (the "Units") upon the satisfaction of certain escrow release conditions, with each Unit comprised of one common share of the Company (a "Common Share") and one Common Share purchase warrant of the Company (a "Warrant").  Each Warrant will entitle the holder to acquire one additional Common Share (a "Warrant Share") for a period of two years from the closing date of the Merger at an exercise price of $2.10 per Warrant Share. If, following the closing of the Merger, the volume weighted average price of the Common Shares on the Canadian Securities Exchange is equal to or greater than $3.05 for any twenty (20) consecutive trading days, the Company may, upon providing written notice to the holders of the Warrants, accelerate the expiry date of the Warrants to the date that is 30 days following the date of such written notice. The Company intends to use the net proceeds of the Offering to expand its cannabis production capacity, grow its retail footprint, and add select brands to its portfolio through highly strategic and complementary acquisitions.

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