High Tide Inc. HITI HITI 2LYA has completed acquisition of eight operating retail cannabis stores in British Columbia and Alberta for CA$4.2 million ($3.27 million). The company intends to complete the acquisition of the ninth store in Niagara, Ontario, pending regulatory approvals.

The stores have the following addresses:

• 191 West 2nd Avenue in Vancouver, British Columbia.

• 1391 Richards Street in Vancouver, British Columbia.

• 115 2nd Avenue West in Brooks, Alberta.

• 5308 50th Avenue in Cold Lake, Alberta.

• 1020 8th Avenue in Cold Lake, Alberta.

• 320 Centre Street in Drumheller, Alberta.

• 2719 14th Street SW in Calgary, Alberta.

• 10140 107th Street in Westlock, Alberta.

For the three months ended April 30, 2022, collectively, the stores, along with the ninth store in Niagara, Ontario, generated annualized revenue of CA$10.2 million and annualized adjusted EBITDA of CA$1.3 million. The purchase price (inclusive of the Niagara store) represents 3.8x annualized adjusted EBITDA for the three months ended April 30, 2022.

Transaction Details

The acquisition was completed pursuant to the terms of a binding agreement dated June 28, 2022. High Tide acquired the stores, including inventory, for CA$4.2 million, by issuing 1.78 million common shares of High Tide at a deemed price of CA$2.3375 per High Tide Share. Pursuant to the acquisition agreement, 70% of the High Tide Shares issued are subject to a four month hold.

The closing of the acquisition remains subject to final approval from the TSXV.

Photo: Courtesy of CNW Group/High Tide Inc.

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