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.
Transaction Details
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.
Photo: Benzinga; Sources: courtesy of Matthias Zomer via Pexels and squarefrog via Pixabay
Related News
High Tide Secures $14.73M Credit Facility
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Click on the image for more info.
Cannabis rescheduling seems to be right around the corner
Want to understand what this means for the future of the industry?
Hear directly for top executives, investors and policymakers at the Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9.
Get your tickets now before prices surge by following this link.