Cannabis retailer High Tide Inc. HITI HITI (FRA:2LYA) has sold its KushBar retail cannabis assets to Halo Collective Inc. HALO AGEEF, previously known as Halo Labs Inc.
The move follows High Tide's recent announcement it's seeking to acquire six retail cannabis stores in Regina, Saskatchewan in a CA$2.9 million ($2.31 million) stock and cash deal.
Under the previously announced deal between Halo and High Tide, Halo's wholly-owned subsidiary purchased three operating KushBar retail cannabis stores for $5.7 million.
The sum includes:
- A deposit of $3.5 million, which was already paid in 2020 through the issuance of 13,461,538 Halo common shares to High Tide at $0.26 per common share,
- $1.8 million in a convertible promissory note with a conversion rate of $0.16 per Halo common share, which Halo issued on the closing; and
- $400,000 in a convertible promissory note with a conversion rate of $0.16 per Halo common share, which are to be issued by Halo on the first anniversary of the closing of the asset sale, if certain revenue milestones are achieved.
The deal was subject to approval by the Alberta, Gaming, Liquor, and Cannabis Commission and the satisfaction or waiver of other customary conditions, High Tide disclosed.
High Tide recently reported that its revenue spiked 99% sequentially to CA$40.9 million ($33.12 million) in the second quarter of fiscal 2021, during which it merged with META Growth Corp. in an all-stock transaction and acquired Smoke Cartel, Inc. for $8 million.
High Tide's shares were trading 7.43% lower at $6.35 per share at the time of writing.
Photo Source: CNW Group/High Tide Inc.
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