High Tide Closes Acquisition of a Majority Stake in Remexian Pharma GmbH

Core Insights - High Tide Inc. has completed the acquisition of a 51% interest in Remexian for an estimated purchase price of €26.4 million, with a five-year option to acquire the remaining 49% [1][4][6] - This acquisition marks High Tide's expansion into the European cannabis market, positioning the company as a global player in the industry [2][3] Transaction Details - The acquisition implies an enterprise valuation of €53.4 million, representing 3.64065 times annualized Adjusted EBITDA for the six months ended March 31, 2025 [4] - The purchase price of €26.4 million consists of €7.65 million in cash, €7.65 million via a loan with a 7% annual interest, and 5,864,373 High Tide shares valued at €11.1 million [5] - The transaction has been conditionally approved by the TSXV and is awaiting final approval [5] Strategic Implications - The acquisition diversifies High Tide's revenue base beyond Canada and provides a pathway for expansion across Europe's regulated cannabis markets [3] - High Tide's proven track record of disciplined growth and free cash flow generation is expected to support its long-term global leadership ambitions [3] Future Options - High Tide has a Call Option to acquire the remaining interests in Remexian at an enterprise value based on Adjusted EBITDA, with a minimum price of €15 million [6] - The Call Option can be exercised at different valuations depending on the timing, while a Put Option allows Remexian's owners to sell their remaining interests back to High Tide [6]