High Tide Inc., a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, has completed the acquisition of the Canna Cabana retail cannabis store located at 435(B) Yonge Street in Toronto, Ontario. The Toronto Store has a strong operating history, being one of the original 25 cannabis retail stores operating in the province. To date, High Tide has earned over $1 million in royalties from the Toronto Store.
In connection with the Transaction, the Company acquired all of the shares of a company owned by the original holder of the cannabis retail store authorization issued by the Alcohol and Gaming Commission of Ontario. High Tide and the vendor agreed to reduce the original purchase price, agreed in March 2019, which was to be partially paid in common shares in the capital of the Company (“HITI Shares“) at a deemed price of $0.48. As consideration for the acquisition, High Tide paid the vendor approximately $4 million in cash, and assumed the company’s loan to open and build the Toronto Store, saving High Tide over $2.3 million1 of dilution and cash.
“As one of the original Ontario lottery winners, the Toronto Store has been successfully operating on Toronto’s iconic Yonge Street since June 2019 and has demonstrated consistent success for almost two years,” said Raj Grover, High Tide’s President & Chief Executive Officer. “We are very pleased to bring this store with its well established track record and existing customer base into our corporately owned portfolio. We remain focused on increasing our retail footprint in Ontario, Canada’s largest cannabis market.” added Mr. Grover.
High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the most profitable Canadian retailer of recreational cannabis as measured by Adjusted EBIDTA,2 with 85 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide’s retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country.