Calgary-based adult-use marijuana retail chain High Tide announced a deal to acquire nine stores from Choom Holdings, including six in Alberta, two in British Columbia and one in Ontario, amid a consolidation trend in Canadian cannabis retail.
The acquisition, worth 5.1 million Canadian dollars ($3.9 million) in High Tide shares, comes after financially distressed Choom was granted creditor protection in April.
“While Choom had 17 operational stores before entering (creditor protection) proceedings, we are able to acquire the nine locations that we want across three provinces,” High Tide President and CEO Raj Grover said on Thursday in a news release.
Both British Columbia stores are in Vancouver, Canada’s third-biggest city.
The B.C. stores will be High Tide’s first locations in the province of 5.3 million people, which was Canada’s third-largest adult-use cannabis market in April, posting sales of CA$52.9 million.
The acquisition is subject to court, regulatory and stock exchange approvals.
Post-acquisition, High Tide said it will have 136 stores across Canada.
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The retailer reported a net loss of CA$8.2 million for its most recent quarter, on revenue of CA$81 million.