High Tide Inc. (NASDAQ: HITI) disclosed that it has inked a share purchase agreement with the shareholders of Saskatchewan Ltd. in accordance with which High Tide will buy all issued and outstanding shares of the Corporation for C$2,900,000. Through this acquisition, High Tide will add six new locations to the firm’s portfolio.
The addition of six new locations brings the total retail footprint of High Tide in Saskatchewan to ten stores upon execution and strengthens its position as a prominent cannabis retailer in the province. As a result of the deal, High Tide will buy a portfolio of six retail cannabis locations in Regina, Saskatchewan, out of which one is functioning and five are in various stages of production and development. These are all anticipated to be operational by the end of 2021.
The deal, which is an arm's length deal, is dependent on, among other things, receipt of required TSX Venture Exchange (TSXV) authorization, Saskatchewan Liquor and Gaming Authority authorization, and other usual conditions of execution. It is anticipated to close within 30 days. In accordance with the terms of the deal, High Tide will buy 100% of the issued and outstanding shares of the Corporation.
Furthermore, the payment for the 100% of the Corporation being bought will be comprised of C$2,150,000 in common shares of High Tide based on an estimated price per High Tide Share equal to the volume-weighted average price per High Tide Share on the TSXV for the 10 successive trading days the previous closing of the Transaction. It also includes C$750,000 in cash. The cash portion of the deal will be financed completely with cash on hand.