High Tide Adds Two Established Cannabis Retail Stores in British Columbia and Six in Alberta

Published: August 5, 2022

High Tide Adds Two Established Cannabis Retail Stores in British Columbia and Six in Alberta

High Tide Inc., a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, is pleased to announce that further to its press release dated July 7, 2022, the Company has completed its acquisition through Companies’ Creditors Arrangement Act (CCAA) Proceedings, of eight operating retail cannabis stores in British Columbia and Alberta (the “Stores”) for CAD$4.2 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 (the “Vancouver West 2nd Store”). The Vancouver West 2nd Store is located in the trendy Mount Pleasant neighbourhood, close to numerous popular restaurants and retail stores, as well as the Olympic Village and Science World.
  • 1391 Richards Street in Vancouver, British Columbia (the “Vancouver Richards Store”). The Vancouver Richards Store is located in the trendy and densely-populated Yaletown neighbourhood in downtown Vancouver.
  • 115 2nd Avenue West in Brooks, Alberta (the “Brooks Store”). The Brooks Store is located in the centre of Brooks, close to numerous retail businesses.
  • 5308 50th Avenue in Cold Lake, Alberta (the “Cold Lake 50th Avenue Store”). The Cold Lake 50th Avenue Store is part of a commercial district in Cold Lake South containing numerous restaurants and other businesses.
  • 1020 8th Avenue in Cold Lake, Alberta (the “Cold Lake 8th Avenue Store”). The Cold Lake 8th Avenue Store is located on the main east-west street in Cold Lake North, close to several businesses, restaurants, and hotels.
  • 320 Centre Street in Drumheller, Alberta (the “Drumheller Store”). The Drumheller Store is located in central Drumheller, close to a variety of local businesses and restaurants.
  • 2719 14th Street SW in Calgary, Alberta (the “Calgary Store”). The Calgary Store is located on a well-trafficked road in southwest Calgary and is easily accessible for residents of nearby communities with favourable cannabis demographics, such as Bankview and South Calgary.
  • 10140 107th Street in Westlock, Alberta (the “Westlock Store”). The Westlock Store is located in the town’s commercial centre, close to numerous businesses.

For the three months ended April 30, 2022, collectively, the Stores, along with the ninth store in Niagara, Ontario, generated annualized revenue of CAD$10.2 million and annualized Adjusted EBITDA of CAD$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 (“Acquisition Agreement”). High Tide acquired the Stores, including inventory, for CAD$4.2 Million, by issuing 1,782,838 common shares of High Tide (each a “High Tide Share”) at a deemed price of $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.

About High Tide
High Tide is a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 139 current locations spanning OntarioAlbertaBritish ColumbiaManitoba, and Saskatchewan. The Company is also North America’s first cannabis discount club retailer, under the Canna Cabana banner, which is the single-largest cannabis retail brand in Canada with additional locations under development across the country. High Tide’s portfolio also includes retail kiosk and smart locker technology – Fastendr™.