This news release constitutes a "designated
news release" for the purposes of the Company's prospectus
supplement dated December 3, 2021 to
its short form base shelf prospectus dated April 22, 2021.
CALGARY,
AB, Aug. 4, 2022 /CNW/ - 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 release dated July 7, 2022, the Company has completed its
acquisition (the "Acquisition") through Companies' Creditors
Arrangement Act ("CCAA") Proceedings, of eight operating retail
cannabis stores in British
Columbia and Alberta (the
"Stores") for CAD$4.2 Million
(the "Transaction"). The Company intends to complete the
acquisition of the ninth store in Niagara, Ontario, pending regulatory approvals.
The Stores have the following addresses:
- 191 West 2nd Avenue in Vancouver,
British Columbia (the "Vancouver West 2nd Store").
The Vancouver West 2nd Store is located in the trendy Mount Pleasant neighbourhood, close to
numerous popular restaurants and retail stores, as well as the
Olympic Village and Science World.
- 1391 Richards Street in Vancouver,
British Columbia (the "Vancouver Richards Store").
The Vancouver Richards Store is located in the trendy and
densely-populated Yaletown neighbourhood in downtown Vancouver.
- 115 2nd Avenue West in Brooks,
Alberta (the "Brooks Store"). The Brooks Store is
located in the centre of Brooks,
close to numerous retail businesses.
- 5308 50th Avenue in Cold Lake,
Alberta (the "Cold Lake
50th Avenue Store"). The Cold
Lake 50th Avenue Store is part of a commercial district in
Cold Lake South containing numerous restaurants and other
businesses.
- 1020 8th Avenue in Cold Lake,
Alberta (the "Cold Lake
8th Avenue Store"). The Cold
Lake 8th Avenue Store is located on the main east-west
street in Cold Lake North, close to several businesses,
restaurants, and hotels.
- 320 Centre Street in Drumheller,
Alberta (the "Drumheller Store"). The Drumheller
Store is located in central Drumheller, close to a variety of local
businesses and restaurants.
- 2719 14th Street SW in Calgary,
Alberta (the "Calgary Store"). The Calgary Store is
located on a well-trafficked road in southwest Calgary and is easily accessible for residents
of nearby communities with favourable cannabis demographics, such
as Bankview and South
Calgary.
- 10140 107th Street in Westlock,
Alberta (the "Westlock Store"). The Westlock Store is
located in the town's commercial centre, close to numerous
businesses.
For the three months ended April 30,
2022, collectively, the Stores, along with the ninth store
in Niagara, Ontario, generated
annualized revenue of CAD$10.2
million and annualized Adjusted EBITDA of CAD$1.3 million. The purchase price (inclusive of
the Niagara store) 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
("Acquisition Agreement"). High Tide acquired the Stores,
including inventory, for CAD$4.2
Million, by issuing 1,782,838 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 Canadian retailer of recreational cannabis as
measured by revenue, with 139 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.
For more information about High Tide Inc., please visit
www.hightideinc.com, its profile page on SEDAR at www.sedar.com,
and its profile page on EDGAR at www.sec.gov.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes
forward-looking statements under applicable securities laws. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expect", "potential",
"believe", "intend" or the negative of these terms and similar
expressions. Forward-looking statements in this news release
include statements relating to: the anticipated effects of the
Acquisition on the business and operations of High Tide; the
suitability of the locations of the Stores; and High Tide's plans
to extend and strengthen its integrated value chain, while
providing a complete customer experience and maximizing shareholder
value..
Forward-looking information in this news release are based on
certain assumptions and expected future events, namely: High Tide's
financial condition and development plans do not change as a result
of unforeseen events; there will continue to be a demand, and
market opportunity, for High Tide's product offerings; current and
future economic conditions will neither affect the business and
operations of High Tide nor High Tide's ability to capitalize on
anticipated business opportunities); the continued suitability of
the location of the Stores, although considered reasonable by
management of High Tide at the time of preparation, may prove to be
imprecise and result in actual results differing materially from
those anticipated, and as such, undue reliance should not be placed
on forward-looking statements.
These statements involve known and unknown risks,
uncertainties and other factors, which may cause actual results,
performance or achievements to differ materially from those
expressed or implied by such statements, including but not limited
to: the risks associated with the cannabis and CBD industries in
general; the inability of High Tide to pursue more retail
acquisitions in the future, the inability of High Tide to extend
and strengthen its integrated value chain, while providing a
complete customer experience and maximizing shareholder value; the
location of the Stores no longer being a suitable location for
continued operations for such store.
Forward-looking statements, forward-looking financial
information and other metrics presented herein are not intended as
guidance or projections for the periods referenced herein or any
future periods, and in particular, past performance is not an
indicator of future results and the results of High Tide in this
press release may not be indicative of, and are not an estimate,
forecast or projection of High Tide future results. Forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement and reflect our expectations as of the
date hereof, and thus are subject to change thereafter. High Tide
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. Factors that
could cause anticipated opportunities and actual results to differ
materially include, but are not limited to, matters referred to
above and elsewhere in High Tide's public filings and material
change reports, which are and will be available on SEDAR.
This news release does not constitute an offer to sell or
a solicitation of an offer to buy any of the securities in
the United States of America. The
securities have not been and will not be registered under the
United States Securities Act of 1933 (the "1933 Act") or any state
securities laws and may not be offered or sold within the United States or to U.S. Persons (as
defined in the 1933 Act) unless registered under the 1933 Act and
applicable state securities laws, or an exemption from such
registration is available.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/high-tide-closes-the-first-tranche-in-its-acquisition-of-choom-adding-two-established-cannabis-retail-stores-in-british-columbia-and-six-in-alberta-301599613.html
SOURCE High Tide Inc.