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Canadian cannabis retailer High Tide has entered into a definitive agreement to acquire high-end brand Queen of Bud, including all intellectual property, trademarks and other assets.
The price of the acquisition was 1 million Canadian dollars ($740,000), of which CA$100,000 will be paid in cash and the remainder in High Tide shares, High Tide said in a new release.
Both companies are based in Calgary, Alberta.
Queen of Bud founder Ashley Newman will remain with the company as global brand ambassador.
“I am thrilled to welcome Queen of Bud into our High Tide family,” CEO Raj Grover said in a statement.
“With well-established brand equity and an extensive customer base across Canada, especially among women, this is an exciting new addition with tremendous future opportunities.
“This is a strategic investment which will fortify our overall ecosystem, and we expect will deliver meaningful value to shareholders while allowing us to stay nimble and not burden the Company with large capex commitments or overhead.”
Grover said the acquisition will allow the business to continue expanding its in-house brand portfolio.
He said Ontario, Manitoba and Saskatchewan already allow white-label brands, and Alberta and British Columbia are considering it.
“As one of the first female founders in the Canadian cannabis industry, it’s been an incredible journey building this brand to where it is today,” Newman said in a statement.
“Together, Raj and I envision not only elevating cannabis to new heights of sophistication but also expanding our horizons beyond borders into international markets, delving into accessories, candles, fragrances, and beyond.”
The deal is expected to close in the coming weeks.
High Tide last week reported break-even net income and positive free cash flow for the first quarter of fiscal 2024.
High Tide shares trade as HITI on the Nasdaq and TSX Venture Exchange.
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