High Tide Inc. HITI HITI (FSE:2LYA) bought the final Choom Holdings' retail cannabis location out of the nine store portfolio for CA$1.1 million. It finalized the purchase through Companies' Creditors Arrangement Act proceedings.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 CA$10.2 million and annualized adjusted EBITDA of CA$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.
The acquisition was completed pursuant to the terms of a binding agreement dated June 28, 2022. High Tide acquired the store, including inventory, for CA$1.1 million, for approximately CA$300,000 in cash and by issuing 364,185 common shares of High Tide at a deemed price of CA$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.
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