High Tide Inc. (“High Tide” or the “Company“) (TSXV: HITI) (Nasdaq: HITI) (FRA: 2LYA), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that it has entered into a share purchase agreement (the “Agreement“) with the shareholders of 102105699 Saskatchewan Ltd. (the “Corporation“), pursuant to which High Tide will acquire all issued and outstanding shares of the Corporation for C$2,900,000 (the “Transaction“). As a result of the Transaction, High Tide will acquire a portfolio of six (6) retail cannabis locations in Regina, Saskatchewan, out of which one is operational and five are in various stages of construction and development and are all expected to be operational by the end of 2021.
“I am excited that we are adding these six new locations which will bring High Tide’s total retail footprint in Saskatchewan to ten stores upon completion and solidify our position as a leading cannabis retailer in the province,” said Raj Grover, High Tide’s President & Chief Executive Officer. “Furthermore, within the City of Regina, there are currently only 13 operating retail cannabis stores of which one will be ours, with five more to come shortly. This transaction is especially beneficial to High Tide because retail cannabis margins in Saskatchewan are higher than the Canadian average, and new licenses are difficult to come by given various municipal zoning restrictions in Regina,” added Mr. Grover.
The Transaction, which is an arm’s length transaction, is subject to, among other things, receipt of required TSX Venture Exchange (“TSXV“) approval, Saskatchewan Liquor and Gaming Authority approval, and other customary conditions of closing, and is expected to close within 30 days. Pursuant to the terms of the Transaction, High Tide will purchase 100% of the issued and outstanding shares of the Corporation. The consideration for the 100% of the Corporation being acquired will be comprised of: (i) C$2,150,000 (the “Share Consideration“) in common shares of High Tide (“High Tide Shares“) on the basis of a deemed price per High Tide Share equal to the volume weighted average price per High Tide Share on the TSXV for the 10 consecutive trading days preceding closing of the Transaction (“Closing“); and (ii) C$750,000 in cash (collectively with the Share Consideration, the “Consideration“). The cash portion of the transaction will be funded entirely with cash on hand.