High Tide said it is expanding its international brand portfolio by entering into a definitive agreement to acquire all IP, including trademarks and other assets of the Queen of Bud brand. Its founder, Ashley Newman, will take the role of global brand ambassador. This cannabis product portfolio is already available in Canada, and its popular ancillary products can be sold right now in the United States and Europe without having to rely on further legislative reforms.
Queen of Bud, which is currently selling products across Canada both direct to consumer and through third-party licensed cannabis stores, joins High Tide's brand roster that includes NuLeaf Naturals, FAB CBD, Blessed CBD, Cabana Cannabis Co, Famous Brandz, Vodka Glass, Puff Puff Pass, Dopezilla, Atomik, Silipipe, Evolution and more.
The arm's length transaction is subject to, among other things, receipt of the required approvals from the TSX Venture Exchange and the satisfaction of other customary conditions of closing. The transaction is expected to close in the coming weeks. The consideration for the assets acquired will be CA$1 million. Of this amount, CA$100,000 will be paid in cash and the remaining will be paid in common shares of High Tide on the basis of a deemed price per High Tide Share equal to the 10-day volume weighted average price on the TSXV ending on the trading day that is three business days prior to the closing date, subject to a floor price equal to the Discounted Market Price (as defined by the TSXV) as of the date this news release.
The High Tide Shares will be subject to a contractual hold period of four months and one day from the date of closing.
