High Tide Pauses Acquisition of Purecan GmbH and Explores Alternative Arrangements with Purecan to Enter the German Medical Cannabis Market
High Tide Inc. (Nasdaq: HITI) has announced a pause in its previously planned acquisition of a 51% interest in Purecan GmbH for approximately €4.8 Million, which was intended to facilitate entry into the German medical cannabis market. During ongoing due diligence, the company reassessed the optimal structure for this transaction and is now exploring alternative arrangements with Purecan to maintain its planned commercial exposure in Germany.
While there is no certainty that an alternative arrangement with Purecan will proceed, High Tide remains committed to entering the German medical cannabis market and will explore both alternative structures with Purecan and other opportunities. High Tide is the second-largest cannabis retailer globally by store count, operating 192 Canna Cabana locations across Canada and managing several e-commerce platforms including Grasscity.com and FABCBD.com.
High Tide Inc. (Nasdaq: HITI) ha annunciato una pausa nell'acquisizione precedentemente pianificata di una partecipazione del 51% in Purecan GmbH per circa 4,8 milioni di euro, che era destinata a facilitare l'ingresso nel mercato tedesco della cannabis medica. Durante la due diligence in corso, l'azienda ha rivalutato la struttura ottimale per questa transazione e ora sta esplorando accordi alternativi con Purecan per mantenere la sua esposizione commerciale pianificata in Germania.
Sebbene non ci sia certezza che un accordo alternativo con Purecan proceda, High Tide rimane impegnata a entrare nel mercato tedesco della cannabis medica e esplorerà sia strutture alternative con Purecan che altre opportunità. High Tide è il secondo più grande rivenditore di cannabis a livello globale per numero di negozi, operando 192 sedi di Canna Cabana in Canada e gestendo diverse piattaforme di e-commerce tra cui Grasscity.com e FABCBD.com.
High Tide Inc. (Nasdaq: HITI) ha anunciado una pausa en su adquisición previamente planeada de un 51% de participación en Purecan GmbH por aproximadamente 4.8 millones de euros, que estaba destinada a facilitar la entrada en el mercado alemán de cannabis medicinal. Durante la debida diligencia en curso, la compañía reevaluó la estructura óptima para esta transacción y ahora está explorando arreglos alternativos con Purecan para mantener su exposición comercial planificada en Alemania.
Aunque no hay certeza de que un arreglo alternativo con Purecan avance, High Tide sigue comprometida con su entrada en el mercado alemán de cannabis medicinal y explorará tanto estructuras alternativas con Purecan como otras oportunidades. High Tide es el segundo minorista de cannabis más grande a nivel mundial por número de tiendas, operando 192 ubicaciones de Canna Cabana en Canadá y gestionando varias plataformas de comercio electrónico, incluyendo Grasscity.com y FABCBD.com.
High Tide Inc. (Nasdaq: HITI)는 약 480만 유로에 Purecan GmbH의 51% 지분 인수를 계획했으나 이를 일시 중단한다고 발표했습니다. 이는 독일 의료용 대마초 시장에 진입하기 위한 것이었습니다. 진행 중인 실사 과정에서 회사는 이 거래의 최적 구조를 재평가했으며, 독일에서 계획된 상업적 노출을 유지하기 위해 Purecan과의 대안적 협정을 모색하고 있습니다.
Purecan과의 대안적 협정이 진행될지 확실하지 않지만, High Tide는 독일 의료용 대마초 시장에 진입하기 위해 계속 헌신하고 있으며, Purecan과의 대안적 구조 및 기타 기회를 탐색할 것입니다. High Tide는 전 세계 매장 수 기준으로 두 번째로 큰 대마초 소매업체로, 캐나다 전역에 192개의 Canna Cabana 매장을 운영하고 있으며, Grasscity.com 및 FABCBD.com을 포함한 여러 전자상거래 플랫폼을 관리하고 있습니다.
High Tide Inc. (Nasdaq: HITI) a annoncé une pause dans son acquisition précédemment prévue d'une participation de 51% dans Purecan GmbH pour environ 4,8 millions d'euros, qui avait pour but de faciliter l'entrée sur le marché allemand du cannabis médical. Au cours de la diligence raisonnable en cours, l'entreprise a réévalué la structure optimale pour cette transaction et explore désormais des arrangements alternatifs avec Purecan pour maintenir son exposition commerciale prévue en Allemagne.
Bien qu'il n'y ait aucune certitude qu'un arrangement alternatif avec Purecan se concrétise, High Tide reste déterminée à entrer sur le marché allemand du cannabis médical et explorera à la fois des structures alternatives avec Purecan et d'autres opportunités. High Tide est le deuxième plus grand détaillant de cannabis au monde en termes de nombre de magasins, exploitant 192 emplacements de Canna Cabana à travers le Canada et gérant plusieurs plateformes de commerce électronique, y compris Grasscity.com et FABCBD.com.
High Tide Inc. (Nasdaq: HITI) hat eine Pause bei der zuvor geplanten Übernahme von 51% an Purecan GmbH für etwa 4,8 Millionen Euro angekündigt, die den Einstieg in den deutschen medizinischen Cannabismarkt erleichtern sollte. Während der laufenden Due Diligence hat das Unternehmen die optimale Struktur für diese Transaktion neu bewertet und erkundet nun alternative Vereinbarungen mit Purecan, um die geplante kommerzielle Präsenz in Deutschland aufrechtzuerhalten.
Obwohl es keine Gewissheit gibt, dass eine alternative Vereinbarung mit Purecan zustande kommt, bleibt High Tide entschlossen, in den deutschen medizinischen Cannabismarkt einzutreten, und wird sowohl alternative Strukturen mit Purecan als auch andere Möglichkeiten erkunden. High Tide ist der zweitgrößte Cannabis-Einzelhändler weltweit nach Anzahl der Geschäfte und betreibt 192 Canna Cabana Standorte in Kanada und verwaltet mehrere E-Commerce-Plattformen, darunter Grasscity.com und FABCBD.com.
- High Tide remains committed to entering the German medical cannabis market
- Company is the second-largest cannabis retailer globally by store count with 192 locations
- Named one of Canada's Top Growing Companies for four consecutive years
- Ranked number one in retail category on Financial Times list of Americas' Fastest Growing Companies for 2023
- Paused acquisition of 51% interest in Purecan GmbH worth €4.8 Million
- No certainty that an alternative arrangement with Purecan will proceed
- Potential delay in planned entry into German medical cannabis market
Insights
High Tide Recalibrates German Market Entry Strategy
High Tide's decision to pause its €4.8 million acquisition of a 51% stake in Purecan GmbH signals a strategic recalibration rather than an abandonment of its German market ambitions. This mid-course correction during due diligence demonstrates management's disciplined approach to capital allocation and willingness to optimize deal structure before committing substantial resources.
The German medical cannabis market represents a significant opportunity, projected to reach €7.7 billion by 2028 according to industry forecasts. For High Tide, with its $205 million market cap, establishing an early foothold in Europe's largest economy could provide substantial growth beyond its saturated Canadian home market, where it already operates 192 retail locations.
What's particularly noteworthy is the company's language about "maintaining planned commercial exposure" while exploring "alternative arrangements." This suggests the issue isn't with the German market opportunity itself but rather with specific terms, structures, or discovered factors in the Purecan acquisition. Possible scenarios include:
- Regulatory compliance concerns identified during due diligence
- Valuation disagreements after deeper financial assessment
- Discovery of more capital-efficient partnership structures than direct acquisition
- Potential licensing or distribution agreements that require less upfront capital
For investors, this development should be viewed through both short and long-term lenses. Near-term, it likely delays revenue contribution from German operations that may have been factored into 2025 projections. Longer-term, however, a more optimized market entry strategy could yield better returns on invested capital and reduce integration risks.
High Tide's diversified cannabis ecosystem - spanning retail, technology, e-commerce, CBD, and wholesale distribution - provides operational stability while management explores the optimal path forward in Germany. The company's recognition among Canada's fastest-growing companies for four consecutive years demonstrates its ability to execute strategic initiatives effectively.
Investors should monitor upcoming announcements for clarity on: 1) timeline for finalizing an alternative German entry strategy, 2) capital requirements of the revised approach, and 3) competitive positioning relative to other North American cannabis retailers targeting European expansion. The company's ability to quickly secure an alternative pathway will be a key indicator of execution capability in international markets.
ABOUT HIGH TIDE
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 count1. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including:
Bricks & Mortar Retail: Canna Cabana™ is the largest cannabis retail chain in
Retail Innovation: Fastendr™ is a unique and fully automated technology that employs retail kiosks to facilitate a better buying experience through browsing, ordering and pickup.
Consumption Accessories: High Tide operates a suite of leading accessory e-commerce platforms across the world, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com.
Brands: High Tide's industry-leading and consumer-facing brand roster includes Queen of Bud™, Cabana Cannabis Co™, Daily High Club™, Vodka Glass™, Puff Puff Pass™, Dopezilla™, Atomik™, Hue™, Evolution™ and more.
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1 As reported by ATB Capital Markets based on store counts as of February 6, 2025 |
CBD: High Tide continues to cultivate the possibilities of consumer CBD through Nuleafnaturals.com, FABCBD.com, blessedcbd.de and blessedcbd.co.uk.
Wholesale Distribution: High Tide keeps that cannabis category stocked with wholesale solutions via Valiant™.
Licensing: High Tide continues to push cannabis culture forward through fresh partnerships and license agreements under the Famous Brandz™ name.
High Tide consistently moves ahead of the currents, having been named one of
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
Media Inquiries
Omar Khan
Chief Communications and Public Affairs Officer
High Tide Inc.
omar@hightideinc.com
403-770-3080
Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
High Tide Inc.
vahan@hightideinc.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking information" and "forward-looking statements within the meaning of applicable securities legislation. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. The forward-looking statements herein include, but are not limited to, statements regarding: whether the Company will complete an alternative transaction with Purecan, or other opportunities in the German market. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including but not limited to the risk factors discussed under the heading "Non-Exhaustive List of Risk Factors" in Schedule A to our current annual information form, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at www.sedarplus.ca and www.sec.gov, which factors are incorporated herein by reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results, or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
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SOURCE High Tide Inc.
FAQ
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