High Tide to acquire 51% of Remexian Pharma GmbH for EUR 27.2M

High Tide (HITI) announced that it is entering the fast growing German medical cannabis market by signing a definitive agreement pursuant to which the company will acquire 51% of Remexian Pharma GmbH, for a preliminary estimated purchase price of EUR27.2M, subject to certain adjustments on closing, and will have an option to acquire the remaining interest in Remexian. Founded in 2018 and headquartered just outside of Berlin, Germany, Remexian is an established pharmaceutical company built for the purpose of importation and wholesale of medical cannabis, and has a fully certified EU GDP warehouse. Among all German medical cannabis procurers, Remexian has one of the most diverse reaches across the globe, currently licensed to import into Germany from 19 countries, including Canada which represents approximately 33% of their total imports into Germany. Given its over $1.9B in Canadian cannabis sales since legalization, High Tide has the Canadian procurement expertise and relationships to leverage this transaction to significantly increase the Canadian share of medical cannabis imports into Germany. The Transaction, which is an arm’s length transaction, is subject to, among other things, receipt of required TSX Venture Exchange approval, and other customary conditions of closing and is expected to close in the coming weeks. It implies an enterprise valuation of EUR53.4M, representing 3.64065 times Annualized Adjusted EBITDA generated during the six months ended March 31, 2025, and is subject to certain adjustments based on working capital and net debt upon closing.