July 10 (Reuters) - Canada's Canopy Growth Corp is buying Toyko Smoke cannabis owner Hiku Brands Co Ltd for C$269.2 million ($205.3 million), the latest deal in a fast-consolidating sector ahead of legal recreational marijuana sales.
Canopy Growth on Tuesday offered 0.046 of its shares, or C$1.91 per share, for each Hiku share held, a premium of 30 percent to Hiku's Monday close.
Hiku said on Tuesday it had terminated its deal with WeedMD Inc, citing Canopy Growth's "superior proposal."
Canadian marijuana companies have been on a buying spree to beef up their portfolio with marijuana sales set to become legal in the country from Oct. 17.
In January, Aurora Cannabis Inc agreed to buy CanniMed Therapeutics Inc for C$1.1 billion to create the world's top marijuana producer by market value.
Canopy Growth bought Mettrum Health in 2016 and BC Tweed in May this year.
West Kelowna-based Hiku owns cannabis brands such as Tokyo Smoke, DOJA and Van der Pop.
The equity value of the deal is based on 140.95 million outstanding Hiku shares, according to Thomson Reuters.
Hiku's Tokyo Smoke has been conditionally awarded one of four master licenses for retail cannabis sales in Manitoba.
Canopy Growth's shares closed down 1.52 percent at C$38.10, while Hiku ended marginally lower at C$1.46 on Tuesday.
$1 = 1.31 Canadian dollars Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila