High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) has added another online weed accessories store to its portfolio as the Canadian company expands its e-commerce footprint south of the border.
In a statement Thursday, the Calgary-based company says it finished a deal to buy DS Distribution Inc., which runs as DankStop.com and sells bongs, pipes, vapes and other weed accessories.
The company now has access to DankStop’s 200,000 email subscribers and nearly 335,000 Instagram followers.
High Tide paid US$3,850,000 in the deal as the company continues to expand into the U.S. market and e-commerce marketplace for weed accessories.
Company stock rose 7.8 per cent to $8.18 on the Nasdaq following the announcement.
DankStop co-founder Feliks Khaykin has also come on board to High Tide as director of U.S. operations.
While High Tide is operating in America’s hemp-derived CBD and weed accessories spaces, the firm has plans to branch out its cannabis retail in the U.S. if weed is legalized federally. This would include cannabis subscription boxes, mature e-commerce sites as well as brick-and-mortar stores.
With DankStop bringing in revenue of more than US$3 million in the 12 months ending April 30, Hight Tide notes the deal is immediately accretive.
The retailer boasts having three out of the top five most popular e-commerce platforms for weed accessories. In 2020, the company saw nearly 100 million site visits across its platforms, including 2.5 million from DankStop.
It operates Grasscity.com, a leading U.S. online accessory retailer, as well as online cannabidiol retailer CBDcity.com.
The company also owns accessory wholesaler Valiant Distribution and subscription box service Daily High Club and bought Smoke Cartel in January.
DankStop will continue its corporate existence under the state of Delaware as a High Tide subsidiary.
In May, High Tide listed on the Nasdaq, becoming the first major cannabis retailer to do so.