High Tide is an Alberta-based, retail-focused cannabis corporation. It is among the most vertically-integrated companies in the Canadian cannabis market, with portfolio subsidiaries including RGR Canada Inc., Smoker’s Corner Ltd., Famous Brandz Inc., Canna Cabana Inc. and the majority of KushBar Inc. High Tide’s strategy as a parent company is to extend and strengthen its retail-focused integrated value chain, while providing a complete customer experience and maximizing shareholder value.
Based on the current exchange rate between the Canadian Dollar and Euro, in 2017 the business generated over $5,720,000 in revenues and $2,825,000 or 49% in gross margin. Through the first nine months of 2018, but prior to the busy holiday season that contributed an incremental 35% and 31% to revenues and gross margin last year, respectively, Grasscity has generated over $3,865,000 in revenues and $2,160,000 or 56% in gross margin. The strong improvement in gross margin is due to an increased focus on the sale of private label products. The assets of the business primarily include web-based property, plant and equipment; intellectual property; product inventories and trade receivables. Currently, Grasscity is in the process of significantly upgrading its e-commerce website by migrating to the Magento 2 platform, which will result in improved performance, scalability and efficiency of back-end site operations. The upgrade is expected to be completed in early 2019.
Grasscity is an iconic company with nearly 20 years of invaluable brand equity in the cannabis industry. It is a natural fit with High Tide since our revenues come from the same product categories – bubblers, grinders, hand pipes, rolling papers, vaporizers and water pipes.
Grasscity’s financial results have been prepared as a private company reporting under Dutch Generally Accepted Accounting Principles (GAAP) and are considered “non-GAAP financial measures” as defined under applicable securities legislation. The Company believes such non-GAAP financial measures provide additional insight into the Company’s rationale for completing the Grasscity acquisition, but notes that these results may change as Grasscity’s financial results are converted to International Financial Reporting Standards (IFRS) and consolidated with High Tide’s results, and that such terms do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers.
The Transaction strengthens High Tide by leveraging its vertically-integrated structure to achieve wider margins, provides it with the opportunity to serve Grasscity’s large customer base and introduces a new set of global business development opportunities.
Under the terms of the Agreements, and to help ensure the successful integration of Grasscity into High Tide, Mr. Ernest has agreed to become an employee of High Tide for a period of two years from the closing date of the Transaction. Mr. Ernest has accepted the role of Managing Director of High Tide Inc. B.V. and will lead the growth and development of the Grasscity business under the High Tide group of companies. SONAR Corporate Finance B.V. was the primary advisor to the shareholders of Grasscity for the Transaction.
CALGARY, Dec. 12, 2018 /CNW/ – High Tide Inc. (“High Tide” or the “Company”) today announced that it, through a newly-formed Dutch subsidiary named High Tide Inc. B.V., has entered into a definitive share purchase agreement and other related agreements (the “Agreements”) to acquire all of the issued and outstanding shares of two entities, SJV B.V. and SJV2 B.V. (collectively, “Grasscity”), that together operate under the name “Grasscity” (the “Transaction”). As per the terms of the Agreements, and excluding any loan repayment amounts, a total purchase price of approximately $6,730,000 will be paid to Grasscity shareholders, of which 8,410,470 special warrants were issued at a deemed price of About High Tide Inc..50 per special warrant and automatically convert to common shares of High Tide at no additional cost to the vendors upon Closing of the Transaction. The Transaction has been unanimously approved by the boards of directors of both companies and is expected to close by the end of the year.
Filip Ernest, Co-Founder and Chief Executive Officer of Grasscity, expressed, “High Tide was our preferred purchaser all along the way, because of its management team, business model and future growth plans. After leading Grasscity for over 15 years, I’m proud to become part of High Tide and am excited to offer our customers an even better selection of products and services from this point forward.” Combining Grasscity’s leading online presence with High Tide’s manufacturing expertise and wholesale distribution network makes this a strong business combination. High Tide is expected to provide Grasscity.com with the means to deliver the best possible service to customers in North America while Grasscity’s legacy in Europe is expected to provide High Tide with local market access and tremendous prospects for growth.
Representing the core of High Tide’s business, RGR Canada Inc. is a high-quality and innovative designer, manufacturer and distributor of cannabis accessories. Founded in 2009 and approved by the Canadian Franchise Association, Smoker’s Corner Ltd. is Canada’s largest counter-culture chain with 19 current locations. Famous Brandz Inc. is a dominant manufacturer of licensed lifestyle accessories, through partnerships with celebrities and entertainment companies including Snoop Dogg and Paramount Pictures. Famous Brandz’ products are sold to wholesalers and retailers around the world. With the deregulation of recreational cannabis for adult use across Canada, Canna Cabana Inc. is positioned to become a sizeable retail brand through a modern concept with a sophisticated yet playful customer experience, while KushBar Inc. is a retail concept that will also be focused on the valued Canadian cannabis consumer.
Dutch Online Cannabis Accessory Retailer… High Tide to Acquire Grasscity – the World’s Most Popular Online Retailer of Smoking Accessories – and the Grasscity Forums CALGARY, Dec. 12,
Your order has been shipped in two parcels. Your missing parcel is still in transit, we are experiencing delays with shipping due to the worldwide situation with COVID-19, our apologies for that. We have resent you your tracking # via email.
Excellent selection and fast delivery. Continuous updates on my order
Unfortunately, we can’t say more than your tracking info states, the package has still not been processed by US customs because of delays due to COVID-19, we are experiencing more delays because of it. We have resent your the tracking data where there update on a daily basis.
I still have not received my Swiss egg bong. I will Change review once it gets here but have been waiting since 4/20 very disappointing thought it would be here by now.
Excellent, thank you for your 5-star review.
Your order has been shipped. Your missing parcel is still in transit, we are experiencing delays with shipping to NYC due to the worldwide situation with COVID-19, our sincere apologies for that.
Thank you for your 5-star review.
This is subject to change, however I ordered an item and it shipped from the Netherlands and is shipping to New York City I placed the order on the 24 of March more than 31 business days ago. I would not mind because of the Pandemic but its taken longer than they said it should and my tracking information hasn’t been updated since March 26th. I opened up a ticket but even that says it will take up to 4 business days to be processed.
I ordered two items and only 1 item was shipped! I was charged for both. I never am able to find a Customer Support number, or had anyone reach out to me. Ive made numerous requests. Please send me my money back or maybe the pipe i ordered would be nice.
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