High Tide Selected By AGCO Lottery Winner To Assist With Opening Cannabis Store

High Tide Inc HTDEF said it was selected to assist with opening and operating a retail cannabis store by a winner of the Alcohol and Gaming Commission of Ontario's lottery, marking the third time a winner has selected High Tide.

What Happened

In December, the Government of Ontario installed a temporary cap on retail cannabis stores in the province as a response to supply shortages. It also authorized the AGCO to hold a lottery — the Expression of Interest Lottery — to select the 25 businesses that would receive authorizations. 

Following the selection of High Tide by the third winner of the lottery held Jan. 11, the company will assist with establishing a Canna Cabana store in Toronto. High Tide has 20 conditional leases for future retail stores across Ontario. 

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Why It's Important

Alberta-based High Tide is a downstream cannabis company focused on the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products. In addition, it has vertically integrated operations in the country and a vast brand portfolio.

Aside from 20 conditional leases in Ontario, High Tide has 26 incremental Canna Cabana and KushBar locations under various stages of development across Alberta and expects one remaining development permit to achieve the maximum of 37 retail cannabis locations in the province. It also has signed letters of intent to buy two retail locations in Saskatchewan and plans to open the allowed maximum of eight stores in British Columbia. 

High Tide also said it would issue warrants to acquire 4 million of its shares at CA$0.40 (30 cents) apiece as part of an agreement with another winner of the AGCO lottery to acquire an entity operating a cannabis store. The warrants will be vested only upon closing of the acquisition, which is subject to AGCO approval.

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