High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) has announced a definitive agreement to acquire 100% of the equity interest of J. Supply Holdings Inc., operating as Northern Helm. The transaction, valued at $7.74 million, includes four of the six retail cannabis stores currently operated by Northern Helm in Ontario.
Store Locations and Expansion
The acquired stores are located at 2377 Highway 2 in Bowmanville, 225 Gore Road in Kingston, 1414 King St. E in Courtice, and 199 Wentworth St W in Oshawa. This acquisition brings High Tide's total store count to 228 Canna Cabana locations across Canada, with 103 in Ontario.
CEO Statement
Raj Grover, Founder and Chief Executive Officer of High Tide, stated: "This acquisition highlights exactly how we intend to continue creating shareholder value: acquiring strong cash-flowing assets at reasonable multiples, integrating them into our proven operating platform, and compounding earnings over time. Surpassing 100 stores in Ontario will be a significant achievement, but we view it as another step toward our long-term objective of building a 350-plus store network."
Transaction Details
The arm's length transaction is subject to approvals from the TSX Venture Exchange and the Alcohol and Gaming Commission of Ontario, with closing expected in the coming weeks. The consideration includes approximately $3.2 million in assumed debt at a 2% interest rate, with 40% of the remaining amount paid in cash ($1.83 million) and 60% paid in High Tide common shares ($2.75 million). The share price will be based on the 10-day volume-weighted average price prior to closing, subject to a floor price. The purchase price represents 4.5 times the annualized Adjusted EBITDA of the stores for the three months ended March 31, 2026.
Growth Outlook
Grover added: "The success of our medical cannabis division demonstrates that High Tide is evolving into much more than a retail company. With strong momentum across both segments, multiple avenues for expansion, and a proven ability to execute, I believe we are exceptionally well-positioned to continue widening our competitive moat and delivering sustainable growth."
