High Tide Acquires One of the Original Ontario Licensed Cannabis Retail Stores
NEWS PROVIDED BY
High Tide Inc.
Apr 29, 2021, 06:00 ET
CALGARY, AB, April 29, 2021 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (TSXV: HITI) (OTCQB: HITIF) (FRA: 2LY), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that it has completed the acquisition (the "Transaction") of the Canna Cabana retail cannabis store located at 435(B) Yonge Street in Toronto, Ontario (the "Toronto Store"). The Toronto Store has a strong operating history, being one of the original 25 cannabis retail stores operating in the province. To date, High Tide has earned over $1 million in royalties from the Toronto Store.
High Tide Inc. - April 29, 2021 (CNW Group/High Tide Inc.)
In connection with the Transaction, the Company acquired all of the shares of a company owned by the original holder of the cannabis retail store authorization issued by the Alcohol and Gaming Commission of Ontario. High Tide and the vendor agreed to reduce the original purchase price, agreed in March 2019, which was to be partially paid in common shares in the capital of the Company ("HITI Shares") at a deemed price of $0.48. As consideration for the acquisition, High Tide paid the vendor approximately $4 million in cash, and assumed the company's loan to open and build the Toronto Store, saving High Tide over $2.3 million1 of dilution and cash.
"As one of the original Ontario lottery winners, the Toronto Store has been successfully operating on Toronto's iconic Yonge Street since June 2019 and has demonstrated consistent success for almost two years," said Raj Grover, High Tide's President & Chief Executive Officer. "We are very pleased to bring this store with its well established track record and existing customer base into our corporately owned portfolio. We remain focused on increasing our retail footprint in Ontario, Canada's largest cannabis market." added Mr. Grover.
