Canada’s High Tide buying US marijuana accessory retailer for $10M

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High Tide, an Alberta-based cannabis retail chain that owns several cannabis accessory and CBD retailers outside of Canada, is acquiring U.S. online marijuana accessories retailer Daily High Club.

Daily High Club shareholders will receive $10 million, comprising $6.75 million in High Tide shares and $3.25 million in cash.

In a Friday news release, High Tide described the acquisition as “another step towards solidifying itself as the leader within the U.S. e-commerce marketplace for consumption accessories.”

“Daily High Club stood out to us because it is an increasingly popular consumption accessories online retailer, with a rapidly growing subscription box model which can easily be tailored to include cannabis products in the event of U.S. federal legalization,” said High Tide CEO Raj Grover in a statement.

High Tide intends to enter U.S. cannabis retail in the event of marijuana legalization at the federal level, the release added.

Harrison Baum, Daily High Club’s founder and CEO, will be appointed High Tide’s director of digital marketing on closing.

The acquisition follows High Tide’s January acquisition of cannabis accessories and CBD seller Smoke Cartel, and its May acquisition of online CBD marketplace FabCBD.

High Tide acquired Amsterdam-based cannabis accessories retailer Grasscity in 2018.

In April, High Tide filed a shelf prospectus to raise up to 100 million Canadian dollars ($81 million).

High Tide was approved to list on the Nasdaq Capital Market in late May, after consolidating its shares to meet the exchange’s listing requirements.

The company’s shares trade as HITI.