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Calgary, AB, September 1, 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, 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.
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.
Senior Vice President – Corporate and Public Affairs
High Tide Inc.
Capital Markets Advisor
High Tide Inc.
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