High Tide is taking one more step to expand its presence in the Canadian retail cannabis market by purchasing two of Jimmy’s Cannabis Shops located in Cranbrook and Prince George in British Columbia.
For the trailing four months ended May 31, 2022, these two stores generated annualized revenue of $5.4 million and annualized Adjusted EBITDA1 of $1.0 million. The purchase price represents 5.25x annualized Adjusted EBITDA for the trailing four months ended May 31, 2022. The consideration for the 100% of equity interest acquired will be $5 Million and $300,000 for the assignment of $300,000 of the vendors’ shareholder loans, all paid in common shares of High Tide.
“I am pleased that since opening our first BC Canna Cabana location in Fort St. John this past June, we continue to grow in Canada’s third largest province both organically, and through accretive acquisition opportunities. These two geographically strategic locations in the BC interior, combined with our existing Vancouver storefronts as well as our Fort St. John location that provides us coverage in Northern BC, positions us nicely across the province setting us up for more success in the coming months,” says Raj Grover, President and Chief Executive Officer of High Tide.
“Our innovative discount club model, which focuses on value-centric regular users has been a hit nationally, and I am very excited to continue rolling it out across BC. Given our strong ongoing growth trajectory, brand recognition and customer loyalty, I anticipate reaching BC’s current store cap of eight before the end of this calendar yea,” adds Grover.
High Tide has not only been expanding its own Canna Cabana brand in British Columbia, it added stores in Alberta, Ontario, and Saskatchewan. The company has also been busy on the mergers and acquisitions front, purchasing Crossroads Cannabis in Woodstock, Ontario, and Bud Heaven’s two stores in Bracebridge, Ontario. And the company acquired nine stores from Choom Holdings Inc. when it went in receivership and seized the shares of Halo Kushbar Retail Inc. taking control of three operating cannabis stores in Alberta.
High Tide currently operates over 140 retail cannabis stores across Canada.