Retail-focused Canadian cannabis company High Tide Inc. (CSE:HITI) (OTCQB:HITIF) continues to increase its presence across the country, announcing Monday that it has completed the acquisition of the Canna Cabana retail cannabis store in Hamilton, Ontario.
The Hamilton cannabis store was one of the first recipients of a retail license in the province and has netted $14 million in gross sales since its opening in April 2019.
The news marks the company's first step towards acquiring its interest in all three Canna Cabana locations in Ontario.
“High Tide is excited to add the Hamilton store to its corporately-owned portfolio of stores, with its large and loyal customer base and top-tier financial performance,” said High Tide President and CEO Raj Grover.
As consideration for the acquisition, High Tide paid the store operator C$2.1 million in cash plus an additional 4,761,904 common shares in the company.
High Tide Acquires 50% of Canna Cabana Retail Cannabis Store in Sudbury
Just one day after the Hamilton store announcement, High Tide Inc. (CSE:HITI) (OTCQB:HITIF) made the second step toward securing ownership of all three Canna Cabana stores in Ontario. The company announced Tuesday that it has acquired a 50% interest in another Canna Cabana cannabis retail store in Sudbury, Ontario from Saturninus Partners.
Since opening on April 20, 2019, the Sudbury cannabis retail location has exceeded C$6.4 million in gross sales, with a gross margin of roughly 27%.
"High Tide is excited to add the interest in this Sudbury location, with its sustained level of high performance, to its corporately-owned portfolio of stores, especially at the start of the increase in sales expected from edibles, infused beverages, and concentrate products that have recently come to market," Grover said. "This transaction is High Tide's second step towards acquiring its ownership interests in all three Canna Cabana stores in Ontario. There is no better time to continue strengthening our presence in the country's largest consumer market."
An option to acquire the other 50% interest was simultaneously exercised by a privately-held, third-party partner of the company.
High Tide Looks to Dominate Canadian Cannabis Retail Market
Since its inception, High Tide Inc. (CSE:HITI) (OTCQB:HITIF) has been focused on building up its retail presence across Canada and thanks to its strategic acquisitions and partnerships, the company is well on its way to leading the nation's retail cannabis market.
The company now owns 30 retail locations in Canada, 26 of which are in Alberta, and isn't planning to slow down anytime soon.
According to High Tide's CEO, the company plans to grow its presence in the Ontario cannabis market throughout 2020 and reach "the maximum of 10 stores per operator as quickly as possible.”
High Tide's ambitious expansion plans recently netted the company a "BUY" recommendation from Tradingview.
Investors who are interested in the retail cannabis space will want to keep an eye on High Tide, as it could move forward quickly with additional acquisitions in the coming months.
By 3 pm EST, High Tide's share price was up 2.5% to C$0.20 on the CSE. At the same time, the company's US-listed stock increased by 3.19% to US$0.16 on the OTC.
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