1. High Tide acquires 51% of Purecan for €4.8 Million to enter Germany's market. 2. Germany's medical cannabis market projected to reach €1 billion by 2028. 3. The deal provides immediate entry into a lucrative market with strong demand. 4. High Tide leverages Canadian relationships to supply German cannabis imports. 5. Purecan has established infrastructure for distribution and telemedicine in Germany.
This acquisition positions HITI strongly in a lucrative market, boosting growth potential, akin to prior successful expansions in Canada.
The article outlines a strategic move into a growing cannabis market, critically impacting HITI's operational outlook.
Establishing presence in Germany will yield benefits over several years, similar to prior international expansions.
The Company Intends to Leverage its Procurement Expertise and Licensed Producer Relationships Associated with its over $1.5 Billion Cumulative Canadian Brick & Mortar Cannabis Sales to Supply the German Medical Cannabis Market
CALGARY, AB, Jan. 13, 2025 /PRNewswire/ - High Tide Inc. ("High Tide" or the "Company") (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced today that it is entering the fast growing German medical cannabis market by signing a definitive agreement (the "Acquisition Agreement") pursuant to which the Company will acquire 51% of Purecan GmbH ("Purecan"), for approximately €4.8 Million (the "Transaction"), and will have a future option to acquire the remaining interest in Purecan.
Purecan is a profitable, import-oriented pharmaceutical wholesaler based in Germany, that holds a license to import medical cannabis into Germany and is preparing to launch a telemedicine portal for medical cannabis patients in Germany, along with complete warehousing and logistics infrastructure.
Germany is one of the world's largest importers of medical cannabis, with almost half of all imports coming from Canada. According to "The German Cannabis Report" released this past October by Prohibition Partners, a London-based data and market intelligence company, medical cannabis sales in Germany were expected to exceed €420 million this year and are on pace to reach €1 billion by 2028. The same report found that sales of medical cannabis in Germany had increased by 30 percent in the third quarter of 2023 and accelerated even further after the passage of Germany's Consumer Cannabis Act in April 2024.
"I am thrilled to announce that High Tide is taking a significant step towards becoming a truly global cannabis company..." - Raj Grover, Founder and CEO of High Tide.
The Transaction, which is an arm's length transaction, is subject to, among other things, receipt of required TSX Venture Exchange ("TSXV") approval, and other customary conditions of closing and is expected to close in the coming weeks. It implies an enterprise valuation of €9.5 Million, representing 3.0 times Annualized Adjusted EBITDA generated during the six months ended December 31, 2024. The purchase price for the 51% acquired will be €4.8 Million broken out as follows:
Purecan is an import-oriented, pharmaceutical wholesaler that focuses on emerging cannabis markets. Based in Frankfurt, Germany, Purecan has developed specialized cannabis procurement expertise since 2018...
High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world's most powerful plant and is the second-largest cannabis retailer globally by store count...
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High Tide Inc.
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High Tide Inc.
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