High Tide to acquire Crossroads Cannabis, adding 4 cannabis retail stores
Mar. 03, 2022 7:00 AM ETHigh Tide Inc. (HITI), HITI:CABy: SA News Team1 Comment
- For expanding its bricks-and-mortar retail cannabis operations, High Tide (NASDAQ:HITI) acquires four operating retail cannabis stores (Stratford, Woodstock, Hanover and Markdale) in Ontario under the name Crossroads Cannabis for C$2.5M.
- Including the Crossroads stores, post closure High Tide will have at least 37 stores in Ontario and 115 stores nationwide.
- For the three months ended Dec.31, 2021, Crossroads generated annualized revenue of C$7.6M and annualized Adj. EBITDA of C$0.7M.
- The purchase price represents 3.5x annualized Adj. EBITDA.
- The company plans to announce more retail store acquisitions in the near term as it plans to reach 150 stores by end of CY22.
- Transaction is expected to close in the upcoming weeks.