High Tide has purchased DankStop, leading to an increase in its stock price
It has been an effort that cannabis retailer High Tide Inc. has been pursuing for some time now. Still, according to its announcement, it is now fine-tuning the final details to close the purchase of DS Distribution Inc., which operates as DankStop.com, for $3.85 million.
According to the details of the transaction, both High Tide USA Inc., a wholly-owned US subsidiary of the Calgary-based cannabis company, and DankStop, the online retailer, reached an agreement to use the issuance of its common stock to pay the stated sum. By the time, the acquisition finally closes, this will mean that DankStop will have about $100,000 in cash and non-cash working capital and an inventory of about $220,000.
Also, it has been made clear that the Delaware-based company will continue to operate as a wholly-owned subsidiary of High Tide USA Inc. It’s no secret to anyone that DankStop has earned its place in popularity, boasting of more than 200,000 email subscribers and approximately 335,000 followers on Instagram. This is a great benefit for High Tide, as it gains access to that entire community.
DankStop co-founder Feliks Khaykin and director Gabe Aronovich will now become part of the Hight Tide team. Once the deal closes, Khaykin will take the position of director of US operations, while the director of US business development title will be assigned to Aronovich, who said is excited to be part of this venture. “The synthesis of High Tide’s extensive manufacturing and e-commerce capabilities with DankStop’s vast subscriber base and social media presence will solidify High Tide’s position as a global leader in the online consumer accessories market, and I couldn’t be more thrilled to be part of the High Tide Family,” he added.
The transaction took a major step forward after both boards of directors gave the go-ahead and are now just waiting for the final details to be finalized.