High Tide Inc. (TSXV: HITI) this morning announced that it is expanding its presence within Saskatchewan. The company has entered into a purchase agreement with that of 102105699 Saskatchewan Ltd, whom holds a portfolio of retail cannabis licenses within the provinces capital.
Under the agreement, High Tide will acquire the firm for $2.9 million. Compensation for the transaction will consist of $2,150,000 worth of common shares of High Tide, along with $750,000 in cash.
The transaction will see High Tide gaining a portfolio of six retail locations in Regina, Saskatchewan, one being operational and the other five being in development. By the end of 2021, the 5 locations that are under development are anticipated to be fully operational.
At the moment Regina has 13 retail cannabis stores in operation. Retail cannabis margins in Saskatchewan are higher than the Canadian average, and new licenses are difficult to access within the city. The transaction will expand High Tide’s retail footprint in Saskatchewan to ten retail locations.
The acquisition is expected to close within 30 days.
The announcement follows the closing of the acquisition of Daily High Club, which High Tide acquired just a week ago as it looks to expand its footprint across America as well. That transaction saw the firm shell out a total of $10.0 million in a combination of cash and shares.
High Tide Inc. last traded on the TSX Venture at $8.85.
Information for this briefing was found via Sedar and the companies mentioned. 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.