
High Tide today announced it is entering the German medical cannabis market by signing a definitive agreement to acquire 51% of Purecan GmbH for approximately €4.8 million (approximately $4.9 million), and will have a future option to acquire the remaining interest in Purecan.
Purecan is a profitable, import-oriented pharmaceutical wholesaler based in Germany, that holds a license to import medical cannabis into Germany and is preparing to launch a telemedicine portal for medical cannabis patients in Germany, along with complete warehousing and logistics infrastructure.
The 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 €9.5 million ($9.7 million).
"With almost half of all German medical cannabis imports coming from Canada, this acquisition paves the way for us to emerge as a leading supplier of medical cannabis from Canada into Germany, potentially replicating our market share success in Canada. As I've said before, our German strategy is multi-pronged. This highly accretive acquisition provides immediate market entry into Germany while we explore opportunities for consumer research in collaboration with the Food and Drug Agency, aligning with the ordinance recently signed by Germany's Agriculture Minister," said High Tide CEO Raj Grover in a statement.