By Jacquie Maynard @ Cannabis Retailer
More of High Tide’s plans for global cannabis domination are revealed with its latest acquisition. In its largest acquisition to date, High Tide purchased 80% of NuLeaf Naturals, a US-based producer of wellness products for US$31.2 million, or 4.4 million in High Tide shares.
The Acquisition
NuLeaf Naturals is the third business in the CBD space High Tide has acquired, further cementing its place in the wellness market. According to the press release, NuLeaf Naturals is one of the only US manufacturers that makes a vegan softgel, and can produce 60,000 of these plant-based soft gels per hour. After having recently secured an expansion with Sprout Farmers Market, increasing its presence from 33 retail locations to 268, and with over 5.1 million site visits and 330,000 unique customers on its e-commerce platform (and hundreds of thousands more from other channels), NuLeaf Naturals has a huge reach, and with an average order of US$120, huge potential as well.
High Tide reports that after this acquisition, its annual run-rate international revenue will increase from $10.6 million this time last year to approximately $80 million. It intends to use Nuleaf’s cGMP-certified facilities to create licensed THC-infused edibles and beverages for the US market as regulations permit.
NuLeaf founders Bo Shirley and Jaden Barnes will retain 20% and stay on in a consultant role to help High Tide expand into the US, however, there is a clause that allows High Tide to purchase the remaining share later on.
NuLeaf joins High Tide’s other acquisitions in the CBD space FABCBD.com, BlessedCBD.co.uk, and CBDcity.com, and Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com in its e-commerce portfolio.
Meanwhile, in Canada…
High Tide also celebrated the opening of its 105th retail store. A Canna Cabana location in Calgary has opened its doors to customers, making it the 59th branded store in Alberta. As per recent news, High Tide is working away at transitioning its stores into “North America’s first and only cannabis discount club retailer” featuring its retail banners Canna Cabana, Meta Cannabis Co., and Meta Cannabis Supply Co. with locations across Ontario, Alberta, Manitoba, and Saskatchewan.