High Tide Inc. HITI HITI (FSE:2LYA) is expanding its brick-and-mortar retail cannabis operations, by entering into a definitive agreement through which High Tide will acquire 100% of the equity interest of 2080791 Alberta Ltd. operating as Boreal Cannabis Company that operates two retail cannabis stores in Alberta for CAD$2.2 million, plus the wholesale value of inventory and cash on hand at closing.
The stores are located at 1104 Main Street SW in Slave Lake, Alberta, and 4225 50 Avenue in St. Paul, Alberta. For the three months ended January 31, 2022, Boreal generated annualized revenue of CAD$3.9 million and annualized Adjusted EBITDA of CAD$0.6 million. The purchase price represents 3.5x annualized Adjusted EBITDA for the three months ended January 31, 2022.
“Through its online consumption accessories sales, value-added CBD activities, and retail spaces, High Tide has managed to diversify itself within the cannabis value chain. We strongly believe Boreal Cannabis is in capable hands and will continue to unlock value for not only shareholders, but our customers through competitive pricing and a customer-centric approach,” stated Glenn Boisvert, CEO of Boreal.
High Tide’s UK-based subsidiary, Blessed CBD, has been included in the Food Standards Agency’s public list of CBD products permitted for sale to consumers. This is a key milestone on Blessed’s path to full authorization, expected no later than 2023. Only those products included on the list have been authorized by the FSA to stay on the market, in line with the UK’s Novel Food requirements.
“This compliance milestone solidifies Blessed’s position as a leader within the regulated UK CBD market, and comes on the heels of its recent entry into Germany, the EU’s largest cannabis market,” stated Raj Grover, president and CEO of High Tide. “Both of these milestones further validate our strategy of pursuing diversified revenue streams both from a product and geographic perspective,” added Grover.
Vahan Ajamian, CPA, CA, CFA, capital markets advisor of High Tide Inc., will be one of the speakers at the Benzinga Cannabis Capital Conference in Miami. There’s still time to sign up for the event that will host many top names in the cannabis industry. Click here for more info.
Photo: Courtesy of CNW Group/High Tide Inc.