High Tide Inc., (Nasdaq : HITI), (TSXV : HITI), announced on Tuesday that it had halted the planned acquisition of German marijuana company Purecan GmbH. This announcement came just weeks after the initial unveiling.
After rethinking its deal structure, the company has now begun to consider other ways of entering the German medical marijuana market.
High Tide stated in a press release that “During the ongoing due diligence the Company has reassessed and re-evaluated the optimal structure of this transaction. It is currently exploring alternative arrangements” with Purecan, to enable High Tide maintain its commercial exposure to the German market.
The company had announced last month that it would acquire a 51% stake in Purecan for approximately €4.8 million. The original deal included €2.4 million in High Tide common shares, €1.2 million in cash, and a €1.2 million promissory note.
High Tide has not revealed the reason why the purchase was halted, but it insists that the company is committed to enter the German Market.
Purecan has not confirmed that a new arrangement will take place. High Tide is committed to keeping the market informed. According to a press release, “The Company remains committed to the German Medical Cannabis Market and will continue to explore alternative structures and entry opportunities into Germany with Purecan as well as other options.”
High Tide operates Canna Cabana retailers across Canada, and is the second-largest retailer of cannabis globally based on store counts. ATB Capital Markets provided the data used in the press release.
In recent months, CEO Raj Grover praised the company’s approach to expansion in Canada. The company opened 30 stores in fiscal year 2024 and now has 191 retail dispensaries. The company anticipates opening 20-30 more locations in 2025.
Although the company posted a C$3.8million loss for its fiscal year of 2024, it reported six consecutive quarterly positive free cash flows and was able to record C$522.3million in revenue.