High Tide Acquires 50% Of Second Ontario Retail Location
High Tide Inc (CSE: HITI) appears to be focused heavily on the Ontario market, with the firm announcing this morning that it has acquired a 50% stake in a Sudbury, Ontario Canna Cabana retail location. The news follows the announcement yesterday that it had wholly-acquired a location in Hamilton, Ontario.
The acquisition, which was completed with the consent of the Alcohol and Gaming Commission of Ontario, will see High Tide purchase 50% of the interest in the retail store authorization from that of Saturninus Partners. An option to purchase the other 50% of the store was simultaneously exercised by an undisclosed privately-held third party partner of High Tide.
The Sudbury store, much like the Canna Cabana retail location in Hamilton, was a first round recipient in the retail store lottery held the AGCO. In the nine months since opening on April 20, 2019, the firm has generated revenues of $6.4 million with a gross margin of approximately 27%, which is significantly lower than that of the Hamilton location.
In consideration for the 50% acquisition of the operator, High Tide issued a total of 5,319,149 common shares of the firm, which hold a value of approximately $1.06 million as of yesterdays close. A total of 2,500,000 common share purchase warrants were also issued, which have an exercise price of $0.40 and an expiry of two years. Also included in the transaction is a 1% royalty on all gross revenues of the Sudbury location, which will remain in place for a period of two years from the date of close.
High Tide last traded at $0.20 on the CSE.
Information for this briefing was found via Sedar and High Tide Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.