Cannabis Retailer High Tide Bolsters Its Presence In US, Closes Acquisition Of Daily High Club

High Tide Inc. HITI HITI (FRA:2LYA) has purchased Daily High Club, an online cannabis accessories retailer, for $10 million.

Transaction Details: The Calgary-based company acquired DHC Supply LLC, which operates as Daily High Club, by issuing 839,820 of its shares at CAD$9.92 ($8.03) and paying $3.25 million in cash.

Harrison Baum, CEO of Daily High Club, agreed to join High Tide as director of digital marketing, the company disclosed Tuesday. In his new position, Baum will be responsible for the company's social media initiatives.

What It Means For High Tide: The previously announced acquisition boosts High Tide's portfolio by adding another e-commerce platform that now boasts 3 out of the top 5 e-commerce platforms for consumption accessories on a global level.

Apart from the consumption accessories subscription box model with more than 15,000 active monthly subscribers, High Tide also now has access to Daily High Club's nearly 800,000 followers on Instagram and more than 75,000 followers on TikTok.

In addition, the transaction is immediately accretive since Daily High Club generated $9.4 million in net revenue in the twelve months ending 2021 while reporting an EBITDA of $1.2 million.

High Tide will also include its subscription box memberships through its e-commerce platforms Grasscity and Smoke Cartel. The company wrapped up an $8 million deal to purchase Smoke Cartel in March.

Photo Source: CNW Group/High Tide Inc.