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Friday, May 20, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

High Tide buys Boreal Cannabis for $2.2M

This is the third small business High Tide buys in less than a month

High Tide buys Boreal Cannabis for $2.2M
Boreal Cannabis pot shop located at 4225 50 Ave, St. Paul, AB T0A 3A3, Canada. Photo via Boreal Cannabis

Leading cannabis retailer High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) has bought another Canadian small business and expanded its store footprint in Northern Alberta by two pot shops.

On Friday, the company said it entered into an agreement to acquire all of the equity interest of 2080792 Alberta Ltd. operating as Boreal Cannabis Company for $2.2 million plus the wholesale value of inventory and cash on hand when the transaction finishes.

Under the agreement, High Tide will acquire one location at Slave Lake and another one in St. Paul.  The Slave Lake store was the first one to open in the municipality.

For the three months ended Jan. 31, 2022, High Tide said the two Boreal pot shops generated annualized revenue of $3.9 million and annualized adjusted earnings before interest, taxes, depreciation and amortization of $600,000. 

“This announcement is yet another example of how we continue to strategically advance our retail store footprint across Canada through organic growth and accretive acquisitions with a focus on regions where we are currently lighter on exposure, such as northern Alberta which has a dynamic economy that supports working families, a key consumer demographic for Canna Cabana,” CEO Raj Grover said in a statement.

Grover said that once the acquisition closes High Tide will have over 120 stores and plans on reaching 150 by the end of the calendar year.

Read more: High Tide reports record Q1 revenue of $72M

Read more: High Tide buys Muskoka retailer for $2.8M

Read more: High Tide buys family-owned Crossroads Cannabis stores for $2.5M

“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,” Boreal CEO Glenn Boisvert said.

High Tide recently acquired the Ontario-based Livonit Foods Inc. which operates as Bud Heaven for $2.8 million in stock. Early March, the company announced it had acquired Crossroads Cannabis stores for $2.5 million.

Company stock rose almost 2 per cent Friday to $5.80 on the TSX Venture Exchange.

 

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