High Tide Inc. (TSXV: HITI) today announced the closing of its acquisition of DHC Supply LLC, otherwise known as the Daily High Club. The acquisition saw the firm acquired for US$10.0 million, in the form of both cash and shares.
The acquisition will see High Tide’s wholly-owned subsidiary, High Tide USA Inc., gaining access to DHC’s subscription box program that boasts upwards of 15,000 subscribed members. The acquisition of DHC is said to add another significant e-commerce platform to High Tide’s portfolio, which will now include 3 of the top 5 e-commerce platforms for cannabis related consumption accessories.
High Tide online platforms reportedly totaled 91 million visits in 2020, of which 23 million are associated with the Daily High Club. DHC generated US$9.4 million in net revenue along with US$1.2 million in EBITDA during the 12 months ended in April 2021, making the transaction immediately accretive.
Under the terms of the agreement, the total consideration for all DHC shareholders is 839,820 common shares of High Tide, valued at US$6.75 million, along with US$3.25 million in cash.
High Tide Inc. last traded on the TSX Venture at CAD$9.39.
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