High Tide Inc., the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, is pleased to announce that further to its press release dated March 15, 2024, the Company has completed its acquisition of the Queen of Bud brand, including all IP, trademarks and other assets.
Queen of Bud, which is currently selling products across Canada both direct to consumers and through third-party licensed cannabis stores, joins High Tide’s industry-leading and consumer-facing brand roster that includes NuLeaf Naturals, FAB CBD, Blessed CBD, Cabana Cannabis Co, Daily High Club, Famous Brandz, Vodka Glass, Puff Puff Pass, Dopezilla, Atomik, Silipipe, Evolution and more.
“I am thrilled to be able to close this transaction on the eve of cannabis legalization in Germany, Europe’s largest economy. Within Canada, Queen of Bud provides an exciting opportunity to offer consumers an elegant and unique line of cannabis products that will generate a higher margin as our premium white-label brand without having to invest millions in grow facilities and associated overhead. We expect this proven cannabis product assortment to yield approximately 5% in additional gross margins once launched across our store network in Canada,” said Raj Grover, Founder and Chief Executive Officer of High Tide.
“More immediately, Queen of Bud’s ancillary cannabis products can be sold right now in the United States and Europe through our proprietary e-commerce channels without having to wait for further legislative reforms. That said, with all the momentum surrounding cannabis legalization in Germany, we look forward to planting the Canna Cabana flag and launching our innovative discount club model with Queen of Bud products on the other side of the Atlantic as soon as possible,” added Mr. Grover.
Transcation Details
The Acquisition was completed pursuant to the terms of an asset purchase agreement dated March 15, 2024 (the “Acquisition Agreement“). The consideration for the Transaction consisted of 378,486 common shares of High Tide (each, a “High Tide Share“) valued at $900,000 (the “Share Consideration“) on the basis of a deemed price of C$2.3779 per High Tide Share, representing the 10-day volume weighted average price on the TSX Venture Exchange (“TSXV“) ending on March 22, 2024, and $100,000 in cash. The closing of the Transaction remains subject to final approval from the TSXV. Pursuant to the Acquisition Agreement, the High Tide Shares are subject to a contractual hold period of four months and one day from the date of Closing.
About Queen of Bud
Queen of Bud is a premium Canadian cannabis brand built on the idea that changing your perspective can help you change anything and that life is an adventure to be relished through quality experiences that energize and enrich your senses. The brand’s success is rooted in delivering cannabis products of the highest quality made with exceptional attention to detail and is inspired by the magical energy of crystals like rose quartz, amethyst, shungite, blue topaz and red jasper. Queen of Bud’s elegant and innovative cannabis products are made from hand-trimmed, hang-dried high-quality cannabis cultivars.
About High Tide
High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world’s most powerful plant and is the second-largest cannabis retailer in North America by store count1. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including Bricks & Mortar Retail: Canna Cabana™ is the largest non-franchised cannabis retail chain in Canada, with 167 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and growing. In 2021, Canna Cabana became the first cannabis discount club retailer in North America.
