High Tide Inc. (NASDAQ:HITI) (TSXV:HITI) (FSE:2LYA) is further expanding its bricks-and-mortar retail cannabis operations and entering the British Columbia market, through a binding agreement pursuant to which High Tide will acquire two operating retail cannabis stores in British Columbia, six operating retail cannabis stores in Alberta, and one operating retail cannabis store in Ontario from Choom Holdings Inc. (OTCQB:CHOOF) (CSE:CHOO) and its subsidiaries, for CA$5.1 million ($3,93 million), pending court approval on July 7, 2022.
"I am thrilled to be announcing this deal today, which represents the third public company whose assets we have integrated into the High Tide portfolio since November 2020, following the acquisitions of Meta Growth and Smoke Cartel. Choom was one of the original and long-standing brands in cannabis retail with a presence across the country and a similar brand personality to Canna Cabana. This will make the integration of Choom into the Canna Cabana brand seamless," stated Raj Grover, president and CEO of High Tide.
"While Choom had 17 operational stores before entering CCAA proceedings, we are able to acquire the nine locations that we want across three provinces at an attractive price of 3.8x annualized adjusted EBITDA. With these acquisitions, we are able to bring our innovative discount club model to Vancouver, Canada's third-largest metropolitan area, as well as numerous new markets in Alberta where we do not yet have a presence. I look forward to giving a warm welcome to the team members from Choom as they join the High Tide family," continued Grover.
Transaction Details
The transaction, which is an arm's length transaction, is subject to, among other things, receipt of required TSX Venture Exchange approval, court approval, approval from various provincial regulators, and other customary conditions of closing, and is expected to close in the coming weeks. The consideration for the stores being acquired will be CA$5.1 million, which is to be satisfied through the issuance of common shares of High Tide on closing of the transaction on the basis of a deemed price per High Tide share equal to the volume weighted average price per High Tide share on TSXV for the 10 consecutive trading days preceding the closing. The transaction may close in multiple tranches depending on the speed of provincial regulatory approvals. Inclusive of the stores, following the closing, High Tide will have at least 43 stores in Ontario, 2 stores in British Columbia, 72 stores in Alberta, and 136 stores nationwide.
Photo: Courtesy of CNW Group/High Tide Inc
Related News
High Tide Secures $3.85M Subordinated Debt Financing, CA$30M Credit Facilities Delayed
Canadian Cannabis Sales Continue To Rebound In April, Here's Why
High Tide Launching Cabana Cannabis Branded White Label Products In Ontario This Fall
