High Tide Makes Waves in German Medical Cannabis Market with Remexian Majority Stake Acquisition

CALGARY – High Tide Inc., a leading Canadian Cannabis retailer, announced its strategic entry into Germany’s medical Cannabis market through a 51% acquisition of Remexian Pharma GmbH, a Frankfurt-based pharmaceutical wholesaler. The deal, valued at an estimated €27.2 million (approx. $29.5 million), marks a significant step for High Tide as it expands its footprint beyond North America into one of Europe’s largest and fastest-growing medical Cannabis markets.

The acquisition provides High Tide with immediate access to Remexian’s established infrastructure, including a German import license, warehousing capabilities, and a forthcoming telemedicine platform tailored for medical Cannabis patients. Germany, which legalized recreational Cannabis for personal use in April 2024, has seen a growing demand for medical Cannabis, with sales projected to reach €1 billion by 2028, according to Prohibition Partners. High Tide aims to leverage its procurement expertise, built on over $1.5 billion in cumulative Canadian Cannabis sales, to capture a significant share of this high-margin market.

Financially, the transaction appears accretive. Remexian’s operations are profitable, with a reported revenue run rate of €15 million annually, 40% gross margins, and 29% EBITDA margins as of December 2024. The purchase price includes €2.4 million in High Tide common shares, €1.2 million in cash, and a €1.2 million promissory note with a two-year term at 7% annual interest. High Tide also secured options to acquire the remaining 49% of Remexian at a valuation based on trailing twelve-month EBITDA, exercisable after 18 months, providing flexibility for future consolidation.

This acquisition positions High Tide to capitalize on Germany’s regulatory shift and growing patient base, but it is not without risks. The German market, while lucrative, has seen inconsistent investment levels, with funding dropping to €20 million across seven deals in 2023 from €55 million in prior years. Competition from established players and potential regulatory changes could challenge High Tide’s ability to replicate its Canadian success.

High Tide’s move reflects a broader trend of Canadian Cannabis companies seeking growth in international markets as domestic margins tighten. With 191 retail locations across Canada and a portfolio of e-commerce platforms, High Tide brings significant operational expertise to this venture.

The deal sets a precedent for further consolidation in the global Cannabis sector, emphasizing the growing demand for medical Cannabis and the strategic importance of Germany as a market entry point for European expansion. As regulatory barriers expected to be lifted and patient access improved, companies like High Tide are likely to be well-positioned to drive value, provided they can effectively manage competitive pressures and operational challenges.

Image courtesy of High Tide Inc.