MJ Biz
After a false state earlier this year, Canadian cannabis retailer High Tide said Thursday it will finally enter German medical marijuana market.
In a 27.2 million-euro deal ($31.7 million), High Tide will acquire 51% of Remexian Pharma GmbH, an established pharmaceutical company created to import and wholesale medical marijuana.
The deal follows an earlier move for a German company High Tide announced and abandoned earlier this year.
“Remexian is an ideal match for us – not only in its commitment to discount pricing but also in its operational approach, which mirrors our lowest price guarantee in Canada,” High Tide founder and CEO Raj Grover said.
“We took our time evaluating potential partners and couldn’t be more excited to join forces with the best-in-class team that built Remexian into a national leader.”
New partner after previous deal fails
The estimated 2.72 million euro purchase price is broken down as follows:
- 42% in common shares of High Tide priced at US$2.19
- 29% in cash
- and 29% in loans from the sellers, which will mature on Dec. 31, 2029 and bear 7% annual interest paid quarterly.
The deal will add about $100 million in revenue to High Tide, Grover said.
Remexian has a fully certified European Union Good Distribution Practices warehouse and is licensed to import cannabis into Germany from 19 countries, including Canada which represents about 33% of its total imports.
Earlier this year, High Tide stepped back from a deal it had with cannabis importer Purecan GmbH to enter Germany’s medical market after conducting due diligence.
Since Germany passed the Consumer Cannabis Act in April 2024, the demand for medical marijuana in the country has continued to accelerate.
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Cannabis retailer High Tide entering German market via acquisition
