- High Tide (HITI) has agreed to acquire 100 per cent of the equity interest of 1171882 B.C. Ltd., operating as Jimmy’s Cannabis Shop BC
- High Tide will acquire two of the five retail cannabis stores currently operated by Jimmy’s in British Columbia for $5.3M
- For the four months ended May 31, 2022, the Stores generated annualized revenue of $5.4 Million and annualized Adjusted EBITDA of $1.0 Million
- High Tide is Canada’s largest retailer of recreational cannabis measured by revenue
- High Tide Inc. (HITI) opened trading at $1.91 per share
High Tide (HITI) has acquired 100 per cent of the equity interest of 1171882 B.C. Ltd., operating as Jimmy’s Cannabis Shop BC.
High Tide will acquire two of the five retail cannabis stores currently operated by Jimmy’s in British Columbia for $5.3 Million.
The stores are located at 1225 Cranbrook Street North, Cranbrook and 1543 Victoria Street, Prince George.
For the trailing four months ended May 31, 2022, the stores generated annualized revenue of $5.4 Million and annualized Adjusted EBITDA of $1.0 Million. The purchase price represents 5.25x annualized Adjusted EBITDA for the trailing four months ended May 31, 2022.
The consideration for the 100 per cent of equity interest acquired will be $5 Million and $300,000 for the assignment of $300,000 of the vendors’ shareholder loans, all paid in common shares of High Tide.
Raj Grover, President and Chief Executive Officer of High Tide, commented on the acquisition.
“I am pleased that since opening our first BC Canna Cabana location in Fort St. John this past June, we continue to grow in Canada’s third largest province both organically and through accretive acquisition opportunities. These two geographically strategic locations in the BC interior, combined with our existing Vancouver storefronts as well as our Fort St. John location that provides us coverage in Northern BC, position us nicely across the province, setting us up for more success in the coming months. Our innovative discount club model, which focuses on value-centric regular users, has been a hit nationally, and I am very excited to continue rolling it out across BC. Given our strong ongoing growth trajectory, brand recognition and customer loyalty, I anticipate reaching BC’s current store cap of eight before the end of this calendar year.”
High Tide is Canada’s largest retailer of recreational cannabis measured by revenue.
High Tide Inc. (HITI) opened trading at $1.91.
