High Tide Inc. (Nasdaq: HITI) ( TSXV: HITI) (FSE: 2LYA) continues to expand its operations across British Columbia and has acquired two new stores in Cranbrook and Prince George.
On Thursday, the Calgary-headquartered retailer announced it is acquiring all of the equity interest of 1171882 B.C. Ltd., operating as Jimmy’s Cannabis Shop BC as well as assignments of the vendors’ shareholder loans.
High Tide will pay $5 million and $300,000 for the assignment of $300,000 of the vendor’s shareholder loans all paid in common shares of High Tide. An amount of $3.7 million will be subject to a contractual hold period of four months and one day from the date of closing.
The transaction is expected to close in the upcoming weeks and still needs approval from the TSX Venture Exchange and the Liquor and Cannabis Regulation Branch (BC).
The stores generated an annualized revenue of $5.4 million and an annualized adjusted earnings, before interests, taxes and depreciation of $1 million.
The store in Cranbrook is located near the base camp of the Kootenay Rockies and within a commercial complex along with a grocery store and a hotel chain. The Prince George store is close to the crossroads of provincial highways 16 and 97 within a commercial plaza along with a clothing shop and a national pharmacy chain.
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“I am pleased that since opening our first BC Canna Cabana location in Fort St. John this past June, we continue to grow in Canada’s third largest province both organically, and through accretive acquisition opportunities,” High Tide CEO Raj Grover said in a statement.
“These two geographically strategic locations in the BC interior, combined with our existing Vancouver storefronts as well as our Fort St. John location that provides us coverage in Northern BC, positions us nicely across the province setting us up for more success in the coming months,” Grover said.
“Our innovative discount club model, which focuses on value-centric regular users has been a hit nationally, and I am very excited to continue rolling it out across BC. Given our strong ongoing growth trajectory, brand recognition and customer loyalty, I anticipate reaching BC’s current store cap of eight before the end of this calendar year.”
