High Tide Inc. (NASDAQ:HITI) (TSXV:HITI) (FSE:2LYA) has seized the shares of Halo Kushbar Retail Inc., which owns three operating cannabis retail stores in Alberta.
As previously disclosed on July 15, 2021, High Tide sold the Kushbar Stores to Halo Collective Inc. (OTCQB:HCANF), for $5.7 million, of which $3.9 million was already satisfied. Part of the consideration High Tide received from Halo was a convertible promissory note in the principal amount of $1.8 million. Due to ongoing breaches of the amended and restated asset purchase agreement between Halo and High Tide, High Tide accelerated the maturity of the note and has seized the shares of Kushbar pursuant to a share pledge agreement between the parties. Therefore, High Tide, who previously received $3.9 million as payment for the sale of the Kushbar Stores, now has reacquired control of the Kushbar Stores. High Tide anticipates obtaining full ownership of Kushbar in early August 2022.
