Mr. Raj Grover reports
HIGH TIDE ACQUIRES TOP PERFORMING CANNA CABANA RETAIL CANNABIS STORE, STRENGTHENS PRESENCE IN ONTARIO
High Tide Inc. has completed the acquisition of the Canna Cabana retail cannabis store in Hamilton, Ont. The acquisition of the Hamilton store, one of a limited number of premier cannabis retail stores operating in the province, marks the company's first step toward acquiring its interest in all three current Canna Cabana locations across Ontario. The Hamilton store has a strong operating history with unaudited gross sales exceeding $14-million for the nine months since opening on April 20, 2019, with gross margins of approximately 28 per cent.
As consideration for the acquisition, High Tide paid to the vendor $2,097,816 in cash and issued to the vendor 4,761,904 common shares in the capital of the company. The transaction was completed with the consent of the Alcohol and Gaming Commission of Ontario (AGCO) following the expiry of certain restrictions on change of control established under the rules applicable to the first cannabis retail lottery conducted by the AGCO on Jan. 11, 2019. In connection with the transaction, the company acquired all of the issued and outstanding shares of a numbered company (Newco) that was wholly owned by the holder of a cannabis retail store authorization issued by the AGCO in the first lottery.
"High Tide is excited to add the Hamilton store to its corporately owned portfolio of stores, with its large and loyal customer base and top-tier financial performance," said Raj Grover, High Tide's president and chief executive officer. "Over the coming year, we look forward to growing our presence in the Ontario market and reaching the maximum of 10 stores per operator as quickly as possible," Mr. Grover added. Through this transaction, High Tide has made its first move toward significantly expanding its retail network in Canada's most populous province.
Separately, the company has also entered into a debt settlement agreement with an arm's-length service provider, pursuant to which the company intends to settle an amount of up to $103,435 owed through the issuance of up to 574,639 shares. The company anticipates that the settlement will close on or about Jan. 29, 2020.
About High Tide Inc.
High Tide is an Alberta-based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products. It is a vertically integrated company in the Canadian cannabis market, with portfolio subsidiaries including RGR Canada Inc., Famous Brandz Inc., Kush West Distribution Inc., Smoker's Corner Ltd., Grasscity.com, Canna Cabana Inc. and the majority of KushBar Inc.
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