- High Tide (HITI) has signed a binding agreement with Choom (CHOO) to acquire nine retail cannabis stores
- The company will pay C$5.1M (3.8x annualized adjusted EBITDA) in common shares for two operating locations in British Columbia, six in Alberta and one in Ontario
- The parties expect the transaction to close in the coming weeks
- High Tide is a retail-focused cannabis company with brick-and-mortar as well as global e-commerce assets
- High Tide (HITI) is up by 4.41 per cent trading at $2.84 per share
High Tide (HITI) has signed a binding agreement with Choom (CHOO) to acquire nine retail cannabis stores.
The company will pay C$5.1M in common shares for two operating locations in British Columbia, six in Alberta and one in Ontario.
For the three months ended April 30, 2022, the stores generated annualized revenue of $10.2M and annualized adjusted EBITDA of $1.3M.
High Tide intends to integrate the stores into its Canna Cabana brand.
The purchase follows Choom’s commencement of CCAA proceedings and marks High Tide’s entry into the Vancouver market, as well as numerous new markets in Alberta.
The parties expect the transaction to close in the coming weeks.
Following the closing, High Tide will own 136 stores nationwide.
“I am thrilled to be announcing this deal today, which represents the third public company whose assets we have integrated into the High Tide portfolio since November 2020, following the acquisitions of Meta Growth and Smoke Cartel,” stated Raj Grover, President and CEO of High Tide.
High Tide is a retail-focused cannabis company with brick-and-mortar as well as global e-commerce assets.
High Tide (HITI) is up by 4.41 per cent trading at $2.84 per share as of 11:38 am EST.