By Veronica Bondarenko @ The Street

Shares of High Tide (HITI) are on the rise after the Canadian cannabis company announced that it would acquire 80% of Denver-based CBD company NuLeaf Naturals.

As part of its efforts to branch out into the CBD market and expand its online sales, High Tide is buying 80% NuLeaf Naturals for U.S. $31.24 million, with the option of acquiring the remaining 20% within the next three years. 

After close on Monday, HITI shares were up 9.54% to C$8.50; they were at C$6.75 last month are up an overall 102% in 2021. 

Canadian cannabis giants like Tilray Inc. (TLRY) and Aurora Cannabis (ACB) also own stakes in the company.

Founded as a company selling smoking accessories and cannabis-adjacent lifestyle products in 2009, High Tide grew exponentially after recreational marijuana was legalized in Canada in 2018.

Founded in 2014, NuLeaf generated U.S. $19.4 million in revenue in the fiscal year ending on Sept. 30 and is capable of manufacturing as many as 60,000 plant-based softgels an hour.

The average order is worth $120 and last year brought in 330,000 customers and 5.1 million site visits to its platform.

The acquisition is the latest in a string of recent purchases by High Tide, and the company has hinted at others coming up as it looks to expand its online sales.

“With this announcement, we have doubled down on our efforts to become a global market leader with respect to hemp-derived CBD production and e-commerce sales,” CEO Raj Grover said in a press release.