Cannabis retailer High Tide Inc. has signed a deal to acquire a 51 per cent stake in German medical cannabis company Purecan GmbH in a deal worth about 4.8 million euros or about $7.1 million.
Purecan is a pharmaceutical wholesaler based in Germany that holds a license to import medical cannabis into Germany.
High Tide chief executive Raj Grover says the acquisition paves the way for the company to emerge as a leading supplier of medical cannabis from Canada.
Under the agreement, High Tide will pay 2.4 million euros in High Tide shares and 1.2 million in cash.
The Canadian company will also issue a 1.2-million-euro promissory note that will mature two years after the closing date, bear seven per cent annual interest and be prepayable at any time by the company with no penalty.
In addition, Purecan’s owners have agreed to grant High Tide a call option to acquire the remaining interest in Purecan not held by the company. High Tide has also granted Purecan’s owners a put option.
REAS MORE: Cannabis retailer High Tide buys pot brand Queen of Bud’s IP for $1M
– The Canadian Press
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