High Tide Expands into German Cannabis Market by Acquiring Purecan
Deal News | Jan 13, 2025 | EIN
High Tide Inc., a leading retail cannabis enterprise, is entering the German medical cannabis market through the acquisition of 51% of Purecan GmbH. The acquisition is valued at approximately €4.8 million, marking a significant strategic move to leverage High Tide's Canadian expertise in a rapidly expanding European market. Purecan, a Germany-based pharmaceutical wholesaler with a license to import medical cannabis, is integral to High Tide’s plan to capitalise on Germany's growing demand, accentuated by recent legislative changes. The acquisition includes Purecan's telemedicine platform, logistical infrastructure, and future potential for complete ownership. This transaction represents an important step in High Tide's strategy to become a global cannabis supplier. High Tide’s investment reflects a robust financial performance and operational synergies with Purecan. The deal is expected to close shortly, pending customary approvals.
Sectors
- Medical Cannabis
- Pharmaceutical Wholesale
- Telemedicine
Geography
- Germany – Germany is the location where Purecan GmbH operates and where the medical cannabis market is rapidly expanding.
- Canada – Canada is the base of High Tide Inc. and a major source of medical cannabis imports into Germany.
Industry
- Medical Cannabis – The article discusses the acquisition in the context of the medical cannabis industry, focusing on the strategic expansion into the German market.
- Pharmaceutical Wholesale – Purecan GmbH operates as a pharmaceutical wholesaler, importing medical cannabis into Germany, relevant to the acquisition.
- Telemedicine – The article mentions Purecan's development of a telemedicine platform specific to medical cannabis, indicating an overlap with this sector.
Financials
- €4.8 million – Purchase price for a 51% stake in Purecan GmbH by High Tide.
- 9.5 million – Enterprise valuation based on EBITDA valuation metrics.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| High Tide Inc. | Acquiring Company | Company | A Canadian retail cannabis enterprise expanding into the German medical cannabis market. |
| Purecan GmbH | Target Company | Company | A German pharmaceutical wholesaler focused on medical cannabis importation. |
| TSX Venture Exchange | Regulatory Body | Government | Approval from TSXV is required for the transaction to proceed. |
| Raj Grover | CEO of High Tide | Person | Leading High Tide's strategic expansion into international markets. |
| Dr. Ehsan Omari | Chief Medical Officer of Purecan | Person | Overseeing medical operations and fostering partnerships for Purecan. |
| Prohibition Partners | Market Intelligence Provider | Company | Released a report highlighting the German cannabis market growth. |