High Tide Acquires Majority Stake in Germany’s Purecan GmbH

LOS ANGELES- Canadian cannabis retailer High Tide Inc. has announced a definitive agreement to acquire a 51% stake in German pharmaceutical wholesaler Purecan GmbH for approximately €4.8 million. The transaction comprises €2.4 million in High Tide common shares, €1.2 million in cash, and a €1.2 million promissory note with a two-year maturity and an annual interest rate of 7%. The agreement also includes an option for High Tide to acquire the remaining interest in Purecan within five years.

Purecan, based in Frankfurt, holds a license to import medical cannabis into Germany and operates comprehensive warehousing and logistics infrastructure. The company is also preparing to launch a telemedicine platform for medical cannabis patients in Germany. As of December 2024, Purecan reported a revenue run rate of approximately €15 million, with gross margins around 40% and EBITDA margins at 29%.

Raj Grover, Founder and CEO of High Tide, emphasized the strategic significance of this acquisition, stating that it positions High Tide to leverage its Canadian licensed cannabis procurement expertise to become a leading supplier of medical cannabis from Canada into Germany. He noted that nearly half of all German medical cannabis imports originate from Canada, highlighting the potential for High Tide to replicate its market share success in Canada within the German market.

Dr. Ehsan Omari, Chief Medical Officer at Purecan, expressed enthusiasm for the partnership, citing the current demand for medical cannabis in Germany outpacing supply. He highlighted the opportunity to tap into High Tide’s procurement expertise and relationships with Canadian licensed producers to meet this growing demand.

Germany has emerged as one of the world’s largest importers of medical cannabis, with Canadian producers supplying nearly 50% of these imports. The country’s medical cannabis market has experienced rapid growth, particularly following the adoption of the Consumer Cannabis Act in April 2024, which facilitated easier access for patients to medical cannabis prescriptions. According to “The German Cannabis Report” by Prohibition Partners, medical cannabis sales in Germany were expected to exceed €420 million in 2024 and are projected to reach €1 billion by 2028.