High Tide Inc. (TSXV: HITI) announced last week that it has entered into a definitive agreement to acquire 80% of Scotland-headquartered Enigmaa Ltd., operating as Blessed CBD. The acquisition, reported to be for consideration of £9.1 million ($15.58 million as of this writing), marks the firm’s entry into the UK cannabis market.
“This acquisition marks our entry into the highly lucrative and rapidly-growing U.K. CBD space which we expect to serve as a launching pad for High Tide to further penetrate the E.U. market for hemp-derived CBD products, while also taking advantage of cross-selling opportunities related to our in-house product lines,” said High Tide CEO Raj Grover.
The 80% equity acquisition price consists of £4.2 million in cash, which the firm said will be funded by cash on hand, and £4.9 million in High Tide common shares. The cannabis firm has also been granted a three-year option to acquire the remaining 20% of the European CBD company.
According to the company, Blessed CBD is “one of the most popular brands for hemp-derived CBD products across the UK”. In 2020, its website recorded almost 5 million site visits and an average order value of approximately £75.
After giving effect to the transaction, Blessed CBD CEO Vithurs Thiru is expected to join the Canadian cannabis firm as its Senior Manager of Search.
High Tide last traded at $7.06 on the TSX Venture.
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