The Globe and Mail reports in its Saturday, Aug. 22, edition that High Tide (18 cents) and Meta Growth (14 cents) have agreed to merge.
A Canadian Press dispatch to The Globe reports that the companies say the merger will give them a combined 63 stores across Ontario, Alberta, Manitoba and Saskatchewan and make it the single largest Canadian cannabis retailer by revenue, with about $133-million in annualized revenue.
The companies plan to double their current footprint to about 115 locations by the end of 2021 by focusing mostly on Ontario.
Under the agreement, Meta's shareholders will receive 0.824 of a High Tide share for each Meta share they hold. Meta shareholders are expected to hold a 45.6-per-cent interest in the combined company.
The companies expect the merger to deliver annual cost and operational synergies between $8-million and $9-million within 12 months of closing of the deal and will list High Tide on the TSX Venture Exchange once the deal is complete.
High Tide chief executive officer Raj Grover will lead the combined company going forward, while Meta CEO Mark Goliger and chief financial officer Mike Cosic will ensure that there is an orderly transition.
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