, 2022-12-29 14:26:09,
CALGARY, Alberta–(BUSINESS WIRE)–Dec 29, 2022–
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, announced today that further to its press release dated September 29, 2022, the Company has completed its acquisition (the “ Acquisition ”) of 100% of the equity interest of 1171882 B.C. Ltd., operating as Jimmy’s Cannabis Shop BC (“ Jimmy’s ”), resulting in High Tide’s acquisition of two retail cannabis stores currently operated by Jimmy’s in British Columbia (the “ Stores ”) for $5.3 Million (the “ Transaction ”). The Stores are located at 1225 Cranbrook Street North, Cranbrook and 1543 Victoria Street, Prince George.
The Cranbrook store is located near the base camp of the Kootenay Rockies and is within a short drive of award-winning golf courses and nature trails. It is also situated within a commercial complex that includes a prominent local grocery store as well as a multinational hotel chain. The Prince George store is situated within the largest city in northern British Columbia, which is also close to the crossroads of provincial highways 16 and 97. The store itself is located within a commercial plaza including a national pharmacy chain and a major discount clothing retailer.
The closing of the Transaction brings High Tide’s nationwide store count to 149, including six in British Columbia. The Company also anticipates the organic opening of its location in Kamloops, BC, imminently.
For the trailing four months ended May 31, 2022, the Stores generated annualized revenue of $5.4 Million and annualized Adjusted EBITDA 1 of $1.0 Million. The purchase price represents 5.25x annualized Adjusted EBITDA for the trailing four months ended May 31, 2022.
The Acquisition was completed pursuant to the terms of a share purchase agreement, dated September 28, 2022 (the “ Acquisition Agreement ”). High Tide acquired 100% of Jimmy’s for 2,595,533 common shares of High Tide (each, a “ High Tide Share ”) valued at $5.3 Million (the “ Share Consideration ”), on the basis of a deemed price of C$2.0365 per High Tide Share. The purchase price is subject to a post-closing working capital…
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