High Tide to Acquire Northern Helm, Adding Four Established Retail Cannabis Stores in Ontario

Executive Summary

• High Tide Inc. entered a definitive agreement to acquire 100% of J. Supply Holdings Inc. (operating as Northern Helm) for $7.74 million, adding four established retail cannabis stores in Ontario to its portfolio.
• The transaction will increase High Tide's total Canna Cabana store count to 228 across Canada, including 103 locations in Ontario, advancing its long-term goal of a 350+ store network.
• Consideration is structured as assumed debt, cash, and common shares, with closing expected in the coming weeks pending TSXV and AGCO approvals.

Key Details

• Target & Assets: 100% equity interest in J. Supply Holdings Inc. (Northern Helm), comprising four retail cannabis stores located in Bowmanville, Kingston, Courtice, and Oshawa, Ontario.
• Total Consideration: $7.74 million.
• Consideration Structure: Approximately $3.2 million in assumed debt (2% interest rate), $1.83 million in cash (40% of the remaining amount), and $2.75 million in High Tide common shares (60% of the remaining amount).
• Share Pricing & Terms: Shares issued at a deemed price equal to the 10-day VWAP on the TSXV ending three business days prior to closing, subject to a TSXV Discounted Market Price floor. Shares are subject to a 4-month and 1-day statutory and contractual hold period.
• Valuation: Purchase price represents 4.5x the annualized Adjusted EBITDA of the stores for the three months ended March 31, 2026.
• Conditions & Closing: Subject to TSXV and Alcohol and Gaming Commission of Ontario (AGCO) approvals, plus customary closing conditions. Expected to close in the coming weeks.
• Post-Transaction Footprint: Brings High Tide's total store count to 228 Canna Cabana locations nationwide, with 103 stores in Ontario.
• Strategic Context: CEO Raj Grover emphasized acquiring cash-flowing assets at reasonable multiples to compound earnings, while highlighting the medical cannabis division (Remexian Pharma) as a second growth engine ahead of Q2 earnings release.

Notable Quotes

• "This acquisition highlights exactly how we intend to continue creating shareholder value: acquiring strong cash-flowing assets at reasonable multiples, integrating them into our proven operating platform, and compounding earnings over time." – Raj Grover, Founder and CEO
• "Surpassing 100 stores in Ontario will be a significant achievement, but we view it as another step toward our long-term objective of building a 350-plus store network that remains unmatched in scale, efficiency, and customer loyalty." – Raj Grover, Founder and CEO