Leading Canadian pot retailer High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) (FSE: 2LYA) is continuing its conquest of Ontario by acquiring another small business.
On Wednesday, the company said it’s buying 100% equity interest of Livonit Foods Inc., operating as Bud Heaven, for $2.8 million in stock.
Bud Heaven operates the only two cannabis stores in Bracebridge, a popular tourist town in the heart of the province’s cottage country. One of the stores is in the downtown core, and the other is in a retail plaza near grocery and liquor stores.
For the three months ended Oct. 31, 2021, High Tide said the two-store operation generated annualized revenue of $4.7 million and annualized adjusted earnings before interest, taxes, depreciation and amortization of $800,000.
High Tide says it’s continuing to consolidate the Ontario cannabis retail space at good returns for its shareholders.
“By acquiring Bud Heaven, Canna Cabana will become a meaningful player in Ontario’s cottage country, a region where we have not had a presence previously,” CEO Raj Grover says in a statement.
“This transaction is part of our ongoing strategy to bring our very well-received discount club model to communities of all sizes across Ontario,” he continues. “Bud Heaven is a particularly attractive acquisition as the first legal cannabis retailer to serve the Muskoka Region, with a strong customer base.”
Grover says more acquisitions are on the way in the near term.
Read more: High Tide reports record Q1 revenue of $72M
Bud Heaven president and founder J. Stevens says the deal will allow his team to continue serving customers with the same passion for years to come.
After closing the deal, as well as a $2.5-million deal to buy Crossroads revealed earlier this month, High Tide will have at least 40 stores in Ontario and 119 stores in Canada.
Company stock rose almost 3 per cent Wednesday to $6.07 on the TSX Venture Exchange.