High Tide has announced it is going to Acquire Nine Operating Retail Cannabis Stores from Choom Holdings.
High Tide Inc. (Nasdaq: HITI) will acquire two operating retail cannabis stores in British Columbia, six operating retail cannabis stores in Alberta, and one operating retail cannabis store in Ontario from Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) and its subsidiaries for CAD$5.1 million, pending court approval on July 7, 2022.
"I am thrilled to be announcing this deal today, which represents the third public company whose assets we have integrated into the High Tide portfolio since November 2020, following the acquisitions of Meta Growth and Smoke Cartel. Choom was one of the original and long-standing brands in cannabis retail with a presence across the country and a similar brand personality to Canna Cabana. This will make the integration of Choom into the Canna Cabana brand seamless,"
Raj Grover, President and Chief Executive Officer of High Tide.
"While Choom had 17 operational stores before entering CCAA proceedings, we are able to acquire the nine locations that we want across three provinces at an attractive price of 3.8x annualized Adjusted EBITDA[1]. With these acquisitions, we are able to bring our innovative discount club model to Vancouver, Canada's third-largest metropolitan area, as well as numerous new markets in Alberta where we do not yet have a presence. I look forward to giving a warm welcome to the team members from Choom as they join the High Tide family."
The Stores have the following addresses:
- 191 West 2nd Avenue in Vancouver, British Columbia.
- 1391 Richards Street in Vancouver, British Columbia.
- 7555 Montrose Road in Niagara Falls, Ontario.
- 115 2nd Avenue West in Brooks, Alberta.
- 5308 50th Avenue in Cold Lake, Alberta.
- 1020 8th Avenue in Cold Lake, Alberta.
- 320 Centre Street in Drumheller, Alberta.
- 2719 14th Street SW in Calgary, Alberta.
- 10140 107th Street in Westlock, Alberta.
For the three months ended April 30, 2022, collectively, the Stores generated annualized revenue of CAD$10.2 million and annualized Adjusted EBITDA of CAD$1.3 million. The purchase price represents 3.8x annualized Adjusted EBITDA for the three months ended April 30, 2022.
1Adjusted EBITDA is a non-IFRS financial measure.