Canada-based cannabis retailer High Tide is stepping back from its deal with Purecan GmbH to enter Germany’s medical marijuana market.
The Calgary, Alberta-headquartered company planned to acquire a 51% interest in Purecan in a cash-and-stock deal for 4.8 million euros ($4.9 million) but, after conducting its due diligence, is now reconsidering what the best deal structure is.
Although High Tide said it is exploring alternative arrangements with Purecan, there is no guarantee that a deal between the two companies will move forward, according to a Tuesday news release.
High Tide’s proposed acquisition, announced Jan. 13, would have included Purecan’s:
- European wholesale and import license.
- Warehousing and logistics infrastructure.
- Telemedicine platform.
Frankfurt-based Purecan is a profitable cannabis importer in Germany.
High Tide said it will also look for other opportunities to enter the German cannabis market.
Germany is one of the world’s largest cannabis importers, with nearly half of imports coming from Canada.
Germany removed marijuana from its narcotics list and legalized an adult-use market, effective last April.
The recent election victory by conservative leader Friedrich Merz could result in a slowdown or reversal of Germany’s recent cannabis reform as his party has previously opposed legalization efforts.
Shares of High Tide trade as HITI on the Nasdaq and TSX Venture Exchange.
