- With the closing of the Acquisition, High Tide now operates 90
retail cannabis locations across Canada.
- Once fully developed, High Tide will have nine stores operating
in the Province of Saskatchewan –
all expected to be open by year end.
CALGARY, AB, Aug. 6, 2021 /CNW/ - High Tide Inc. ("High
Tide" or the "Company") (TSXV: HITI) (NASDAQ: HITI)
(FSE: 2LYA), a retail-focused cannabis corporation enhanced by the
manufacturing and distribution of consumption accessories, is
pleased to announce, that further to its press release dated
July 13, 2021, the Company has
completed its acquisition (the "Acquisition") of 102105699
Saskatchewan Ltd. ("102 Saskatchewan"), which owns five
retail cannabis locations in Regina,
Saskatchewan, out of which one is operational and four are
in various stages of construction and development. All five
locations are expected to be operational by the end of 2021.
102 Saskatchewan is working on finalizing a sixth location that
will be included in the Acquisition if secured.
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The Acquisition was completed pursuant to the terms of a share
purchase agreement, as amended on August 5,
2021, (the "Acquisition Agreement"), copies of which
are available on the Company's SEDAR profile. High Tide acquired
all of the issued and outstanding shares of 102 Saskatchewan
("102 Shares") from 102 Saskatchewan's shareholders in
consideration for: (i) 254,520 common shares of High Tide (each a
"High Tide Share") valued at C$2,002,000 (the "Share Consideration"),
on the basis of a deemed price of $7.8658 per High Tide Share, being equal to the
volume weighted average price per High Tide Share on the TSX
Venture Exchange ("TSXV") for the ten consecutive trading
days preceding the closing of the Acquisition; and (ii)
C$698,000 in cash (collectively with
the Share Consideration, the "Consideration").
The High Tide Shares issued pursuant to the Share Consideration
are subject to a statutory hold period of four months and one
day.
ABOUT HIGH TIDE
High Tide is a retail-focused cannabis company enhanced by the
manufacturing and distribution of consumption accessories. The
Company is the most profitable Canadian retailer of recreational
cannabis as measured by Adjusted EBITDA1, with 90
current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment
features the Canna Cabana, Meta Cannabis Co., Meta Cannabis Supply
Co. and NewLeaf Cannabis banners, with additional locations under
development across the country. High Tide has been serving
consumers for over a decade through its established ecommerce
platforms including Grasscity.com, Smokecartel.com and
Dailyhighclub.com, and more recently in the hemp-derived CBD space
through CBDcity.com and FABCBD.com as well as its wholesale
distribution division under Valiant Distribution, including the
licensed entertainment product manufacturer Famous Brandz. 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. Key industry investors
in High Tide include Tilray Inc. (TSX: TLRY) (Nasdaq: TLRY) and
Aurora Cannabis Inc. (TSX: ACB) (Nasdaq: ACB).
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
________________________
|
1
|
Adjusted EBITDA is a
non-IFRS financial measure.
|
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements"
within the meaning of applicable securities laws. All statements
contained herein that are not clearly historical in nature may
constitute forward-looking statements.
Generally, such forward-looking information or
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of and negatives of such words and
phrases or may contain statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken", "will
continue", "will occur" or "will be achieved". The forward-looking
information and forward- looking statements contained herein
include, but are not limited to, statements regarding the potential
effects of the Acquisition on High Tide's business, the anticipated
timing of the completion of the construction and development of the
four Regina retail locations and
the ability for the High Tide to secure and develop a sixth retail
location.
Forward-looking information in this news release are based on
certain assumptions and expected future events, namely: High Tide's
ability to continue as a going concern; 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; that the construction and
development of the four Regina
retail locations will be completed by the end of 2021; and the
acquisition and development of a sixth retail location. Although
considered reasonable by management of High Tide at the time of
preparation, the foregoing assumptions and/or expected future
events 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 ability of High Tide to continue as a going
concern; risks associated with general economic conditions;
adverse industry events; marketing costs; loss of markets; future
legislative and regulatory developments involving the retail
cannabis markets; inability to access sufficient capital from
internal and external sources, and/or inability to access
sufficient capital on favourable terms; the retail cannabis
industries generally; income tax and regulatory matters; the
ability of High Tide to implement its business strategy;
competition; currency and interest rate fluctuations; the COVID-19
pandemic nationally and globally; the inability of High Tide
to complete the construction and development of the four
Regina retails locations; the
inability of High Tide to secure and develop the sixth retail
location; and the response of governments to the COVID-19 pandemic
in respect of the operation of retail stores.
Readers are cautioned that the foregoing list is not
exhaustive. Readers are further cautioned not to place undue
reliance on forward-looking statements, as there can be no
assurance that the plans, intentions, or expectations upon which
they are placed will occur. Such information, although considered
reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those
anticipated.
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.
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SOURCE High Tide Inc.