By Jelena Martinovic at Benzinga
The sum includes $2 million in cash and $6 million in High Tide’s common shares. In addition, the company opted to sell some 9.54 million of its shares to fund the transaction.
The previously announced acquisition of Smoke Cartel is “part of our strategy to aggressively pursue M&A targets that can be immediately accretive to shareholders,” President and CEO Raj Grover stated.
Besides the U.S. and Canadian customers, the acquisition allows High Tide to reach Smoke Cartel’s customers within the United Kingdom, Australia, Germany, and Mexico as well.
It also provides access to Smoke Cartel’s drop-shipping technology and its database consisting of more than 1 million email and social contacts.
The transaction will “enhance all our e-commerce businesses and further drive vertical integration across all accessory business lines while continuing to make progress on our application to list on the Nasdaq,” Grover added.
High Tide’s Recent Moves
In November, High Tide acquired META Growth through a stock-based merger.
Grover said that the merger “nearly doubled” the company’s size in Canada.
With roughly CA$8 million ($6.32 million) in adjusted EBITDA and CA$83.2 million ($65.7 million) in revenue, 2020 was the “best year in High Tude’s history,” Grover disclosed.
As a result, High Tide kicked off 2021 by accelerating its strategy of pursuing “acquisition opportunities” as it recently secured some $23 million in financing through a bought deal offering of its units.