Benzinga | Jul 13, 2021 11:20AM EDT

High Tide Cannabis To Acquire Six Dispensaries In Saskatchewan For $2.31M In Stock And Cash

High Tide Inc. (TSXV:HITI) (NASDAQ: HITI) will acquire six retail cannabis stores in Regina, Saskatchewan in a CA$2.9 million ($2.31 million) stock and cash deal.

The retail-focused cannabis company reported Tuesday it has reached an agreement with the shareholders of 102105699 Saskatchewan Ltd. (the "corporation), under which High Tide will buy all the shares of the corporation.

The news comes on the heels of the company's acquisition of Daily High Club, an online cannabis accessories retailer, for $10 million, through which it has strengthened its presence in the U.S.

Via the newest transaction, the Calgary, Alberta-headquartered company will obtain a portfolio of six retail locations. Out of those six, one retail store is currently active, while five are in different stages of development and are expected to become operational by the end of the year.

The consideration for the purchase amounts to a total of CA$2.9 million, consisting of CA$2.15 million in shares of High Tide and CA$750,000 in cash. The transaction is subject to standard closing requirements and is expected to close within the next 30 days.

"I am excited that we are adding these six new locations which will bring High Tide's total retail footprint in Saskatchewan to ten stores upon completion and solidify our position as a leading cannabis retailer in the province," Raj Grover, High Tide's president and CEO stated. "Furthermore, within the City of Regina, there are currently only 13 operating retail cannabis stores of which one will be ours, with five more to come shortly. This transaction is especially beneficial to High Tide because retail cannabis margins in Saskatchewan are higher than the Canadian average, and new licenses are difficult to come by given various municipal zoning restrictions in Regina," Grover added.

Price Action

High Tide's shares were trading 1.23% lower at $7.05 per share at the time of writing.

Photo: Courtesy of Tim Foster on Unsplash