High Tide Inc. Acquires Queen of Bud

LOS ANGELES- In a strategic move to enhance its market footprint, High Tide Inc. (Nasdaq: HITI) (TSXV: HITI), a prominent Canadian cannabis chain, has announced the acquisition of the Queen of Bud brand, including its intellectual property, for $1 million. The transaction, which combines $100,000 in cash and the remainder in High Tide shares, is set to conclude in the coming weeks, subject to approval from the TSX Venture Exchange and adherence to customary closing conditions.

High Tide’s founder and CEO, Raj Grover, highlighted the acquisition as a pivotal development, citing Queen of Bud’s significant brand equity and its established customer base, notably among women in Canada. “This is an exciting new addition with tremendous future opportunities,” Grover stated, emphasizing the strategic nature of the investment aimed at bolstering High Tide’s ecosystem without imposing significant capital expenditure or overhead.

The acquisition is timely, aligning with regulatory changes in Ontario, Manitoba, and Saskatchewan that permit white-label brands, and anticipatory changes in Alberta and British Columbia. This positions High Tide advantageously for expanding its in-house brand portfolio in a dynamically evolving market.

With 163 stores across five Canadian provinces, High Tide is on a trajectory to solidify its market presence, planning to add 96 more stores in Ontario alone. This expansion comes after the Ontario government raised the cap on the number of dispensaries a company can own, setting the new limit at 150. “Our expectation is to open 20 to 30 stores in calendar 2024,” Grover shared, underscoring the company’s aim for a 10% market share across its operational provinces, with a long-term goal of reaching 15%.

In a significant aspect of the deal, Ashley Newman, the founder of Queen of Bud, will serve as the global brand ambassador for High Tide. Reflecting on her journey, Newman, one of the pioneering female founders in the Canadian cannabis industry, expressed enthusiasm about the future trajectory of the brand under High Tide’s leadership. “Given High Tide’s expertise, extensive store network, and capital resources, I feel confident that this arrangement will elevate the brand to even greater heights,” Newman remarked.

This acquisition marks a pivotal chapter for both entities, with High Tide poised to leverage Queen of Bud’s market appeal and Newman’s vision to explore international markets and diversify product offerings, including accessories, candles, and fragrances. The collaboration aims to transcend traditional boundaries in the cannabis sector, driving innovation and setting new standards of excellence.