Closing Completes High Tide's Nine Store
Acquisition of Choom
This news release constitutes a "designated
news release" for the purposes of the Company's prospectus
supplement dated December 3, 2021 to
its short form base shelf prospectus dated April 22, 2021.
CALGARY,
AB, Sept. 1, 2022 /CNW/ - High Tide Inc.
("High Tide" or the "Company") (NASDAQ: HITI) (TSXV:
HITI) (FSE: 2LYA), a leading retail-focused cannabis company with
bricks-and-mortar as well as global e-commerce assets, is pleased
to announce that further to its press releases dated July 7, 2022 and August 4,
2022, the Company has completed its acquisition (the
"Acquisition"), through Companies' Creditors Arrangement Act
("CCAA") Proceedings, of the final retail cannabis location (the
"Store") out of the nine store portfolio for CAD$1.1 Million (the "Transaction"). The
Store is located at 7555 Montrose Road in Niagara Falls, Ontario, and is situated in
Niagara Square, an outlet mall anchored by numerous national big
box and discount retailers.
For the three months ended April 30,
2022, collectively, the Store, along with the eight Choom
locations that were previously acquired by High Tide, generated
annualized revenue of CAD$10.2
million and annualized Adjusted EBITDA of CAD$1.3 million. The purchase price (inclusive of
all nine Choom locations) represents 3.8x annualized Adjusted
EBITDA for the three months ended April 30,
2022.
TRANSACTION DETAILS
The Acquisition was completed pursuant to the terms of a binding
agreement dated June 28, 2022
("Acquisition Agreement"). High Tide acquired the Store,
including inventory, for CAD$1.1
Million, for approximately $300,000 in cash and by issuing 364,185 common
shares of High Tide (each a "High Tide Share") at a deemed
price of $2.3375 per High Tide Share.
Pursuant to the Acquisition Agreement, 70% of the High Tide Shares
issued are subject to a four month hold.
The closing of the Acquisition remains subject to final approval
from the TSXV.
ABOUT HIGH TIDE
High Tide is a leading retail-focused cannabis company with
bricks-and-mortar as well as global e-commerce assets. The Company
is the largest non-franchised retailer of recreational cannabis in
Canada, with 140 current locations
spanning Ontario, Alberta, British
Columbia, Manitoba, and
Saskatchewan. The Company is also
North America's first cannabis
discount club retailer, under the Canna Cabana banner, which is the
single-largest cannabis retail brand in Canada with additional locations under
development across the country. High Tide's portfolio also includes
retail kiosk and smart locker technology – Fastendr™. High Tide has
been serving consumers for over a decade through its established
e-commerce platforms including Grasscity.com, Smokecartel.com,
Dailyhighclub.com, and Dankstop.com and more recently in the
hemp-derived CBD space through Nuleafnaturals.com, FABCBD.com,
BlessedCBD.co.uk, BlessedCBD.de, and Amazon UK, as well as its
wholesale distribution division under Valiant Distribution,
including the licensed entertainment product manufacturer Famous
Brandz. High Tide was featured in the third annual Report on
Business Magazine's ranking of Canada's Top Growing Companies in 2021 and was
named as one of the top 10 performing diversified industries stocks
in the 2022 TSX Venture 50™. High Tide's strategy as a parent
company is to extend and strengthen its integrated value chain,
while providing a complete customer experience and maximizing
shareholder value.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For more information about High Tide Inc., please visit
www.hightideinc.com, its profile page on SEDAR at www.sedar.com,
and its profile page on EDGAR at www.sec.gov.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes
forward-looking statements under applicable securities laws. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expect", "potential",
"believe", "intend" or the negative of these terms and similar
expressions. Forward-looking statements in this news release
include statements relating to: the anticipated effects of the
Acquisition on the business and operations of High Tide; the
suitability of the locations of the Store; and High Tide's plans to
extend and strengthen its integrated value chain, while providing a
complete customer experience and maximizing shareholder
value..
Forward-looking information in this news release are based on
certain assumptions and expected future events, namely: High Tide's
financial condition and development plans do not change as a result
of unforeseen events; there will continue to be a demand, and
market opportunity, for High Tide's product offerings; current and
future economic conditions will neither affect the business and
operations of High Tide nor High Tide's ability to capitalize on
anticipated business opportunities); the continued suitability of
the location of the Store, although considered reasonable by
management of High Tide at the time of preparation, may prove to be
imprecise and result in actual results differing materially from
those anticipated, and as such, undue reliance should not be placed
on forward-looking statements.
These statements involve known and unknown risks,
uncertainties and other factors, which may cause actual results,
performance or achievements to differ materially from those
expressed or implied by such statements, including but not limited
to: the risks associated with the cannabis and CBD industries in
general; the inability of High Tide to pursue more retail
acquisitions in the future, the inability of High Tide to extend
and strengthen its integrated value chain, while providing a
complete customer experience and maximizing shareholder value; the
location of the Store no longer being a suitable location for
continued operations for such store.
Forward-looking statements, forward-looking financial
information and other metrics presented herein are not intended as
guidance or projections for the periods referenced herein or any
future periods, and in particular, past performance is not an
indicator of future results and the results of High Tide in this
press release may not be indicative of, and are not an estimate,
forecast or projection of High Tide future results. Forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement and reflect our expectations as of the
date hereof, and thus are subject to change thereafter. High Tide
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. Factors that
could cause anticipated opportunities and actual results to differ
materially include, but are not limited to, matters referred to
above and elsewhere in High Tide's public filings and material
change reports, which are and will be available on SEDAR.
This news release does not constitute an offer to sell or
a solicitation of an offer to buy any of the securities in
the United States of America. The
securities have not been and will not be registered under the
United States Securities Act of 1933 (the "1933 Act") or any state
securities laws and may not be offered or sold within the United States or to U.S. Persons (as
defined in the 1933 Act) unless registered under the 1933 Act and
applicable state securities laws, or an exemption from such
registration is available.
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SOURCE High Tide Inc.