High Tide is reconsidering a cannabis merger it announced just last month.
In January, the company said it intended to enter into the German medical cannabis market by acquiring a 51% interest in Purecan GmbH for approximately €4.8 million (about $4.9 million). But now it says it may restructure the deal.
"During ongoing due diligence, the company reassessed the optimal structure for this transaction and is now exploring alternative arrangements with Purecan to allow High Tide to maintain its planned commercial exposure into the German market," wrote High Tide in a news release. "There is no certainty that an alternative arrangement with Purecan will proceed."
Despite the hiccup, High Tide said it's still committed to the German medical cannabis market and will explore both alternative structures with Purecan and other opportunities for entry into Germany.
Purecan is an import-oriented pharmaceutical wholesaler based in Germany. It 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.
