High Tide to Acquire Mississauga Retail Cannabis Store

Published: June 27, 2024

High Tide to Acquire Mississauga Retail Cannabis Store

High Tide Inc., the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced today that it has entered into a definitive asset purchase agreement dated June 25, 2024 pursuant to which High Tide will acquire a retail cannabis store in Mississauga, Ontario, currently operating as Cantopia for $600,000. The store is located at 6400 Millcreek Drive, Mississauga and is situated in a bustling retail plaza surrounded by several small businesses. It is adjacent to an internationally recognized quick-serve restaurant and is steps away from a national discount retailer and a Canadian discount grocery chain.

For the trailing three months ended May 31, 2024, the store generated annualized revenue of $2.3 Million and annualized Adjusted EBITDA1 of $0.4 Million. The purchase price represents 1.5x annualized Adjusted EBITDA for the trailing three months ended May 31, 2024.

“High Tide has always been focused on quality over quantity when looking at M&A opportunities, and this acquisition is another example of our targeted strategy. Since the end of calendar 2022, we have been focusing on greenfield growth, adding 24 locations organically with effectively no M&A. As it has been and continues to be a buyers’ market, we have been patient pursuing only the highest quality opportunities while not chasing any deals or giving into unrealistic seller’s expectations, unlike some of our peers,” said Raj Grover, Founder and Chief Executive Officer of High Tide.

“As the Canadian retail cannabis market is going through heightened consolidation, many operators are assessing the current macro conditions and the limited options available to them. Joining the High Tide family allows these retailers to weather the storm while providing us with fully operational sites with strong revenues for reasonable multiples. I am pleased to add another highly accretive store to our outstanding retail portfolio and look forward to more strategic and accretive M&A as the opportunities arise,” added Mr. Grover.

All figures are expressed in Canadian dollars unless otherwise noted.


1 Adjusted EBITDA is a non-IFRS financial measure.

Transaction Details
The Transaction, which is an arm’s length transaction, is subject to, among other things, receipt of required TSX Venture Exchange (“TSXV“) approval, Alcohol and Gaming Commission of Ontario approval, and other customary conditions of closing, is expected to close in the coming weeks. The Consideration (the “Consideration“) for the Stores being acquired will be $600,000 paid in cash on the closing of the Transaction (the “Closing“). The purchase price represents 1.5x annualized Adjusted EBITDA for the three months ended May 31, 2024. From the Consideration, an amount equal to approximately $150,000 will be held in escrow for a period of twelve (12) months by High Tide’s lawyers to satisfy Cantopia’s indemnity with respect to possible claims based on breaches of representation and warranties.

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 count2. 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 174 current locations spanning British ColumbiaAlbertaSaskatchewanManitoba and Ontario and growing. In 2021, Canna Cabana became the first cannabis discount club retailer in North America.