High Tide Inc. (“High Tide” or the “Company“) (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, is pleased to announce that further to its press releases dated July 7, 2022 and August 4, 2022, the Company has completed its acquisition (the “Acquisition“), through Companies’ Creditors Arrangement Act (“CCAA”) Proceedings, of the final retail cannabis location (the “Store“) out of the nine store portfolio for CAD$1.1 Million (the “Transaction“). The Store is located at 7555 Montrose Road in Niagara Falls, Ontario, and is situated in Niagara Square, an outlet mall anchored by numerous national big box and discount retailers.
For the three months ended April 30, 2022, collectively, the Store, along with the eight Choom locations that were previously acquired by High Tide, generated annualized revenue of CAD$10.2 million and annualized Adjusted EBITDA of CAD$1.3 million. The purchase price (inclusive of all nine Choom locations) represents 3.8x annualized Adjusted EBITDA for the three months ended April 30, 2022.
The Acquisition was completed pursuant to the terms of a binding agreement dated June 28, 2022 (“Acquisition Agreement“). High Tide acquired the Store, including inventory, for CAD$1.1 Million, for approximately $300,000 in cash and by issuing 364,185 common shares of High Tide (each a “High Tide Share“) at a deemed price of $2.3375 per High Tide Share. Pursuant to the Acquisition Agreement, 70% of the High Tide Shares issued are subject to a four month hold.
The closing of the Acquisition remains subject to final approval from the TSXV.