High Tide Pauses Acquisition of Purecan GmbH and Explores Alternative Arrangements with Purecan to Enter the German Medical Cannabis Market

Rhea-AI Summary

High Tide Inc. (Nasdaq: HITI) has announced a pause in its previously planned acquisition of a 51% interest in Purecan GmbH for approximately €4.8 Million, which was intended to facilitate entry into the German medical cannabis market. During ongoing due diligence, the company reassessed the optimal structure for this transaction and is now exploring alternative arrangements with Purecan to maintain its planned commercial exposure in Germany.

While there is no certainty that an alternative arrangement with Purecan will proceed, High Tide remains committed to entering the German medical cannabis market and will explore both alternative structures with Purecan and other opportunities. High Tide is the second-largest cannabis retailer globally by store count, operating 192 Canna Cabana locations across Canada and managing several e-commerce platforms including Grasscity.com and FABCBD.com.

Positive

• High Tide remains committed to entering the German medical cannabis market
• Company is the second-largest cannabis retailer globally by store count with 192 locations
• Named one of Canada's Top Growing Companies for four consecutive years
• Ranked number one in retail category on Financial Times list of Americas' Fastest Growing Companies for 2023

Negative

• Paused acquisition of 51% interest in Purecan GmbH worth €4.8 Million
• No certainty that an alternative arrangement with Purecan will proceed
• Potential delay in planned entry into German medical cannabis market

CALGARY, AB, Feb. 25, 2025 /PRNewswire/ - High Tide Inc. ("High Tide" or the "Company") (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced on January 13, 2025, its intention to enter into the German medical cannabis market by acquiring a 51% interest in Purecan GmbH ("Purecan") for approximately €4.8 Million. During ongoing due diligence, the Company reassessed the optimal structure for this transaction and is now exploring alternative arrangements with Purecan to allow High Tide to maintain its planned commercial exposure into the German market. There is no certainty that an alternative arrangement with Purecan will proceed. High Tide will update the market as required. The Company continues to be committed to the German medical cannabis market and will explore both alternative structures with Purecan and other opportunities for entry into Germany.

ABOUT HIGH TIDE

High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world's most powerful plant and is the second-largest cannabis retailer globally by store count¹. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including:

Bricks & Mortar Retail: Canna Cabana™ is the largest cannabis retail chain in Canada, with 192 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and growing. In 2021, Canna Cabana became the first cannabis discount club retailer in the world.

Retail Innovation: Fastendr™ is a unique and fully automated technology that employs retail kiosks to facilitate a better buying experience through browsing, ordering and pickup.

Consumption Accessories: High Tide operates a suite of leading accessory e-commerce platforms across the world, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com.

Brands: High Tide's industry-leading and consumer-facing brand roster includes Queen of Bud™, Cabana Cannabis Co™, Daily High Club™, Vodka Glass™, Puff Puff Pass™, Dopezilla™, Atomik™, Hue™, Evolution™ and more.

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1 As reported by ATB Capital Markets based on store counts as of February 6, 2025

CBD: High Tide continues to cultivate the possibilities of consumer CBD through Nuleafnaturals.com, FABCBD.com, blessedcbd.de and blessedcbd.co.uk.

Wholesale Distribution: High Tide keeps that cannabis category stocked with wholesale solutions via Valiant™.

Licensing: High Tide continues to push cannabis culture forward through fresh partnerships and license agreements under the Famous Brandz™ name.

High Tide consistently moves ahead of the currents, having been named one of Canada's Top Growing Companies by the Globe and Mail's Report on Business in 2024 for the fourth consecutive year and was recognized as a top 50 company by the TSX Venture Exchange in 2022, 2024 and 2025. High Tide was also ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023. To discover the full impact of High Tide, visit www.hightideinc.com. For investment performance, don't miss the High Tide profile pages on SEDAR+ and EDGAR.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION

Media Inquiries
Omar Khan
Chief Communications and Public Affairs Officer
High Tide Inc.
omar@hightideinc.com
403-770-3080

Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
High Tide Inc.
vahan@hightideinc.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release may contain "forward-looking information" and "forward-looking statements within the meaning of applicable securities legislation. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. The forward-looking statements herein include, but are not limited to, statements regarding: whether the Company will complete an alternative transaction with Purecan, or other opportunities in the German market. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including but not limited to the risk factors discussed under the heading "Non-Exhaustive List of Risk Factors" in Schedule A to our current annual information form, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at www.sedarplus.ca and www.sec.gov, which factors are incorporated herein by reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results, or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

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SOURCE High Tide Inc.

FAQ

Why did High Tide pause the acquisition of Purecan GmbH?

High Tide paused the acquisition during ongoing due diligence after reassessing the optimal structure for the transaction. The company is now exploring alternative arrangements with Purecan to maintain its planned commercial exposure in the German market.

How much was High Tide planning to pay for Purecan GmbH?

High Tide was planning to acquire a 51% interest in Purecan GmbH for approximately €4.8 Million as announced on January 13, 2025.

Will HITI still enter the German medical cannabis market?

Yes, High Tide remains committed to entering the German medical cannabis market and will explore both alternative structures with Purecan and other opportunities for market entry.

How many retail locations does High Tide currently operate?

High Tide operates 192 Canna Cabana locations across British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario, making it the largest cannabis retail chain in Canada.

What recognition has HITI received in recent years?

High Tide has been named one of Canada's Top Growing Companies by the Globe and Mail for four consecutive years, recognized as a top 50 company by the TSX Venture Exchange in 2022, 2024, and 2025, and ranked number one in retail on the Financial Times list of Americas' Fastest Growing Companies for 2023.