Just weeks after the announcement that High Tide Inc., one of Canada’s leading cannabis retailers, had sold three of its locations to Halo Collective Inc., the company has reassumed control of the Alberta Kushbar retail locations.
Reacquisition of Stores
The original sale of the stores was at a price of $5.7 million, with $3.9 million provided up front. As part of the agreement, High Tide received a promissory note in the amount of $1.8 million from Halo. However, as a result of ongoing breaches of the amended and restated asset purchase agreement between the two companies, the maturity of the note was accelerated by High Tide, yielding the seizure of shares.
The reacquired stores, which High Tide will reassume full control of sometime within the next couple of weeks, adds to the retailer’s impressive portfolio of more than 130 retail locations in Ontario, Alberta, British Columbia, Manitoba, and Saskatchewan, as well as its first-class ecommerce offering.
Bolstering High Tide’s Presence
It’s a reacquisition that perhaps signals the turbulent and uncertain tenor currently experienced by most operating within the evolving industry. And, according to Raj Grover, President and Chief Executive Officer of High Tide, it’s one that really bolsters the company’s presence in Alberta.
“Halo’s default on the Note has given us the opportunity to capitalize on the goodwill and popularity of the Kushbar Stores, which are situated in great locations,” he admits. “I am pleased to welcome these three established stores back into the High Tide family. Two of the three Alberta locations are in markets where we don’t currently have a presence. The Kushbar Stores are on an annual revenue run rate of $3.25 million for the three months ended June 2022. This represented a 10% increase versus the three months ended March 2022.”
Elevated Service and Experience
In addition to helping to expand the High Tide Inc. retail portfolio, reacquisition of the Kushbar stores, according to Grover, also provides the company with a massive opportunity to elevate the service and experience that patrons of the locations receive, further enhancing High Tide’s stature and reputation within the industry.
“As we transition these stores into Canna Cabana, introducing our innovative discount club model in these communities, we expect to be able to further improve the operations of these stores,” he asserts. “As an update, I’m proud to report that our Cabana Club loyalty program has now exceeded 670,000 members.”