High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) is buying a dispensary chain with six stores owned by 102105699 Saskatchewan Ltd. for C$2,900,000. High Tide will acquire a portfolio of six retail cannabis locations in Regina, Saskatchewan, out of which one is operational and five are in various stages of construction and development and are all expected to be operational by the end of 2021.
“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,” said Raj Grover, High Tide’s President & Chief Executive Officer. “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,” added Mr. Grover.
The payment will consist of C$2,150,000 in common shares of High Tide and C$750,000 in cash. The cash portion of the transaction will be funded entirely with cash on hand.
High Tide has been busy acquiring companies. In June, the company said it was buying DHC Supply LLC operating as Daily High Club in a deal valued at $10 million. It was expected to close around the end of June 2021. The transaction consisted of $6.75 million in common shares of High Tide and $3.25 million in cash. Daily High Club is an online retailer of glass water pipes, vaporizers, and other in-demand consumption accessories.
In March, High Tide completed the acquisition of Smoke Cartel Inc. (OTCQB: SMKC) in a deal valued at $8 million. At the time, the company said it operated both the largest and second-largest e-commerce platforms for consumption accessories in the world with a combined total of 33 million site visits in 2020. As a result of the acquisition, High Tide said it has considerably expanded its footprint in the United States market and is very enthusiastic about its position to begin online cannabis sales should the United States move forward with federal legalization.