Canadian Cannabis Consolidation: High Tide (HITI) Acquires Cantopia Store

The Canadian retail cannabis market is consolidating, and High Tide (HITI) is finding opportunities to grow its portfolio as the company announced the acquisition of Cantopia, the cannabis retail store which, marks its sixth location in Mississauga, Ontario. Since the end of 2022, the company has added 24 locations organically with effectively no M&A. The PRISM Emerging Cannabis Index company has been up ~24% YTD.

The Cantopia store was acquired for $600K. For the trailing three months ended May 31, 2024, the store generated annualized revenue of $2.3M and annualized Adjusted EBITDA of $0.4M. The purchase price represents 1.5x annualized Adjusted EBITDA for the trailing three months ended May 31, 2024.

“As the Canadian retail cannabis market is going through heightened consolidation, many operators are assessing the current macro conditions and the limited options available to them. Joining the High Tide family allows these retailers to weather the storm while providing us with fully operational sites with strong revenues for reasonable multiples. I am pleased to add another highly accretive store to our outstanding retail portfolio and look forward to more strategic and accretive M&A as the opportunities arise,” stated Raj Grover, Founder and Chief Executive Officer of High Tide.

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Canadian Cannabis Consolidation: High Tide (HITI) Acquires Cantopia Store

Ashlee Vogenthaler

Markets Editor