Canadian cannabis retail chain High Tide is making yet another U.S. e-commerce acquisition, entering a $3.85 million deal to acquire online marijuana accessories retailer DankStop.
Under the terms of the deal announced Tuesday, High Tide’s U.S. subsidiary will purchase 100% of DankStop shares for $3.85 million in High Tide shares.
The planned acquisition is the latest in a series of deals that High Tide described as part of a plan to “dominate the e-commerce marketplace for consumption accessories and merchandise, especially targeting the United States.”
Those deals include the acquisition of:
- Online marijuana accessories retailer Daily High Club for $10 million, a deal that closed Tuesday.
- FabCBD, an online marketplace for CBD products and accessories, for $20.6 million.
- Smoke Cartel, a cannabis accessories and CBD retailer, for $8 million.
Feliks Khaykin, co-founder of New Jersey-based DankStop, will join High Tide as director of U.S. operations, and DankStop director Gabe Aronovich will become High Tide’s director of U.S. business development.
High Tide said DankStop has more than 200,000 email subscribers and nearly 335,000 Instagram followers, adding a new sales channel and boosting its social media reach.
DankStop is already a supplier for High Tide’s drop-shipping catalogue, High Tide added, “resulting in enhanced efficiencies and vertical integration.”
“Being vertically integrated in the consumption accessories space and having access to the end consumer will continue to result in our ability to make meaningful high margin sales across all of our channels,” High Tide CEO Raj Grover said in a statement.
“Having already commenced online cannabis sales in three Canadian provinces, and already possessing an established customer network in place in the U.S. positions us well to commence online cannabis sales and cannabis subscription boxes in the United States if and when federally permissible.”
High Tide shares trade as HITI on the Nasdaq exchange and the TSX Venture exchange.