New acquisition by High Tide continues to push the company to the front of the industry

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High Tide will purchase NuLeaf Naturals for $31.24 million as cannabis M&A activity continues

Leading cannabis company focused on retail with physical and global eCommerce assets, Hight Tide, has recently announced that as part of its clear efforts to remain at the forefront of the global cannabidiol (CBD) market, it has decided to enter into a definitive agreement under which High Tide will acquire 80% of NuLeaf Naturals, in a transaction valued at $31.24 million, and in which it will have a three-year option to acquire the remaining 20% of NuLeaf at any time.

There is no doubt that this is a major step forward for High Tide to further establish itself as a relevant player within the global market for hemp-derived CBD products. Companies involved in the cannabis industry have begun to realize that expansion into legal markets is of utmost importance to continue to deliver positive developments and increase profits, which is why acquisitions have become a trend.

It is reported that through this move, High Tide now increases the current US revenue rate by 40%, which translates to approximately $55 million in total. The transaction is also considered highly accretive to shareholders as NuLeaf was able to generate revenues in excess of $19 million and adjusted EBITDA of nearly $5.30 million during the 12 months ended September 30, 2021, of which direct-to-consumer eCommerce revenues accounted for a total of $16.3 million.

NuLeaf has been recognized over the past several months for driving innovation in the cannabinoid market through its new multicannabinoid capsules and oils. This formula is specially designed to enhance the endocannabinoid system (ECS), a system that is responsible for the regulation of many areas in the body.