High Tide Enters U.K. Market Through Acquisition of Blessed CBD
Summary
CALGARY, Alberta--(BUSINESS WIRE)--High Tide Inc. (“High Tide” or the “Company”) (TSXV: HITI) (Nasdaq: HITI) (FSE: 2LYA), a retail-focused cannabis company enhanced by the manufacturing of proprietary and licensed consumption accessories, is pleased to announce that it is taking another step towards solidifying itself as a major player within the global e-commerce marketplace for hemp-derived CBD products, by entering into a definitive agreement (the “Acquisition Agreement”), pursuant to which High Tide will acquire 80% of Enigmaa Ltd., operating as Blessed CBD, (“Blessed”) for £9.06 Million (the “Transaction”), and will have a three-year option to acquire the remaining 20% of Blessed at any time. This acquisition provides unparalleled opportunities for growth to serve our current and future customers, expand into emerging new markets, and introduce new products unmatched in quality,” added Mr. Thiru. Large Global Potential – A recent report from Global Market Insights found that the international CBD Market size surpassed USD $7.1 billion in 2020 and is estimated to grow at a compound annual growth rate (CAGR) of over 35% between 2021 and 2027.5 The European Business review recently cited a study by Grandview Research which predicts that, “over the next five years, the global CBD industry is projected to accelerate to $23.6 billion.”6 The Transaction, which is an arms length transaction, is subject to, among other things, receipt of required TSX Venture Exchange (“TSXV”) approval, and other customary conditions of closing, is expected to close during October 2021, implies an enterprise valuation of £11.3 Million, representing 4.0x EBITDA generated during the 12 months ended August 2021. The company provides a marketplace with a wide variety of high-quality products and formulas, affordable pricing, rapid dependable shipping, and surprisingly personable customer service. High Tides strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value.