What is going on with HITIF?
High Tide, Inc. (HITIF) stock fell today after the company announced it had acquired Fab Nutrition, LLC, one of the leading online retailers of hemp-derived CBD products. Shares of High Tide declined 0.78% to 0.496 as of Monday at 11:19am.
What does this mean for High Tide, Inc?
High Tide's acquisition of Fab Nutrition will significantly increase its presence within the U.S. e-commerce marketplace for hemp-derived CBD products. HITIF has recently taken similar steps by acquiring other companies of similar size. The strategy seeks to expand High Tide's footprint in the United States market by selling products that are already federally permissible, thereby allowing the company to drive profitability without having to wait for federal cannabis legalization.
Under the terms of the agreement, High Tide has acquired 80% of Fab Nutrition for $20.64 million and has been granted a three-year option to acquire the remaining 20% of Fab at any time. Additionally, 9,679,778 High Tide Shares, equal to 25% of the Consideration has been placed in escrow for a period of up to 24 months from closing, with releases scheduled every six months.
HITIF has an Overall Score of 33. Find out what this means to you and get the rest of the rankings on HITIF!
High Tide Inc is an Alberta-based, downstream cannabis corporation focused on the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products. It is a vertically-integrated company in the Canadian cannabis market with portfolio subsidiaries including RGR Canada Inc., Famous Brandz Inc., Kush West Distribution Inc., Smoker's Corner Ltd., Grasscity.com, Canna Cabana Inc. and the majority of KushBar Inc. High Tide's aim to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value.
