PriceSensitive

High Tide (TSXV:HITI) finalizes Choom acquisition

Cannabis
TSXV:HITI
01 September 2022 09:45 (EDT)

Source: High Tide.

High Tide (HITI) has acquired the last of nine retail cannabis stores from Choom for C$1.1M.

The store is located in Niagara Falls’ Niagara Square, an outlet mall anchored by numerous national big box and discount retailers.

Consideration included $300,000 in cash and the issuance of 364,185 common shares priced at $2.3375. The closing of the acquisition remains subject to TSXV approval.

For the three months ended April 30, 2022, the nine locations generated annualized revenue of $10.2M and annualized adjusted EBITDA of $1.3M.

The $5.1M purchase price, inclusive of all nine locations, represents 3.8x annualized adjusted EBITDA for the three months ended April 30, 2022. The deal was completed through Companies’ Creditors Arrangement Act proceedings.

High Tide is Canada’s largest retailer of recreational cannabis measured by revenue.

High Tide (HITI) is up by 1.04 per cent trading at $1.95 per share as of 9:34 am EST.


Related News