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Thursday, Aug 11, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

High Tide finishes acquiring majority of Choom stores

The last store in Niagara, Ontario is still pending regulatory approvals

High Tide to launch Cabana Cannabis Co. products in Ontario
Photo via High Tide

High Tide Inc.  (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) has completed acquiring eight out of nine of Choom’s pot shops.

On Thursday, the leading cannabis retailer announced that it has added eight stores, two in British Columbia and six in Alberta, following the $4.2 million agreement announced last month. The last store in Niagara, Ontario is still pending regulatory approvals.

High Tide said that for the three months ended April 30 the nine stores generated annualized revenue of $10.2 million and annualized adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $1.3 million.

The purchase price is 3.8 times the annualized adjusted EBITDA for the three months ended April 30.

High Tide acquired the stores, including inventory by issuing 1,782,838 common shares of High Tide at a price of $2.3375 per share where 70 per cent are subject to a four-month hold.

The closing of the acquisition remains subject to final approval from the TSXV.

Read more: High Tide seizes 3 Kushbar shops after defaulted purchase agreement

Read more: High Tide opens its first Canna Cabana pot shop in British Columbia

The  stores are located at:

  • 191 West 2nd Avenue in Vancouver, British Columbia
  • 1391 Richards Street in Vancouver, British Columbia
  • 115 2nd Avenue West in Brooks, Alberta
  • 5308 50th Avenue in Cold Lake, Alberta
  • 1020 8th Avenue in Cold Lake, Alberta
  • 320 Centre Street in Drumheller, Alberta
  • 2719 14th Street SW in Calgary, Alberta
  • 10140 107th Street in Westlock, Alberta

High Tide currently has 139 locations across Ontario, Alberta, British Columbia, Manitoba and Saskatchewan. It has North America’s first pot discount club under the Canna Cabana banner that offers the first retail kiosk and smart locker.

Company stock dropped by 0.54 per cent on Friday to $1.85 on the Canadian Venture Exchange.

 

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