High Tide Completes $7.77 Million Acquisition of Four Ontario Marijuana Stores
- High Tide Inc. completed a $7.77 million acquisition of Northern Helm, adding four marijuana stores in Ontario located in Bowmanville, Kingston, Courtice, and Oshawa to its retail network.
- The acquisition increases High Tide’s total store count to 228 across Canada, including 103 stores in Ontario, strengthening its presence in the Durham Region and eastern Ontario.
- The four stores generated approximately $8.5 million in annualized revenue and $1.7 million in annualized adjusted EBITDA for the quarter ending March 31; the purchase price was about 4.5 times this EBITDA and included $3.06 million in assumed debt.
- High Tide paid for the acquisition with cash and shares, receiving conditional approval from the TSX Venture Exchange, and plans to expand its Cabana Club and ELITE membership programs in the acquired stores.
High Tide Inc. announced today that it has completed its $7.77 million acquisition of Northern Helm, adding four marijuana stores in Ontario to its retail network.
The stores are located in Bowmanville, Kingston, Courtice and Oshawa. With the acquisition complete, High Tide now operates 228 marijuana stores across Canada, including 103 in Ontario.
The Calgary-based company acquired 100% of J. Supply Holdings Inc., which operates under the Northern Helm name. High Tide initially announced the proposed transaction in June.
“At High Tide, every acquisition and every new store must strengthen our competitive position for years to come,” said High Tide Founder and CEO Raj Grover. “We remain highly disciplined in pursuing both acquisitions and organic growth opportunities, investing only where we see the ability to create meaningful long-term value for our shareholders.”
For the three months ending March 31, the four stores generated annualized revenue of approximately $8.5 million and annualized adjusted earnings before interest, taxes, depreciation and amortization of $1.7 million.
The purchase price represents approximately 4.5 times the stores’ annualized adjusted EBITDA for that period and remains subject to a working capital adjustment.
High Tide said the transaction included $3.06 million in assumed debt carrying a 2% interest rate. Of the remaining consideration, approximately $1.88 million was paid in cash and $2.83 million was paid through 921,486 High Tide shares.
The shares were issued at a deemed price of $3.067 each and are subject to a statutory holding period of four months and one day.
Grover said the acquisition strengthens High Tide’s presence in the Durham Region and eastern Ontario while allowing the company to introduce more consumers to its Cabana Club and ELITE membership programs.
The transaction has received conditional approval from the TSX Venture Exchange and remains subject to final approval.
High Tide operates its Canadian stores under the Canna Cabana brand, which the company describes as the second-largest marijuana retail brand globally. Its Canadian retail operations span Alberta, British Columbia, Manitoba, Ontario and Saskatchewan.