Area cannabis business sold in $2.5 million deal

Area cannabis business sold in $2.5 million deal

By M.T. Fernandes, Local Journalism Initiative ReporterDundalk Herald

Sat., March 26, 20221 min. read

In a deal this month, High Tide acquired the four retail locations of Crossroads Cannabis in Markdale, Hanover, Stratford and Woodstock.

High Tide, which also does e-commerce sales, is expanding its bricks-and-mortar holdings with the $2.5 million acquisition.

The store in Markdale, north of Dundalk, is located beside the LCBO. Hanover is another Grey County location. It opened in October, 2021. The Stratford location was the first to open in that city in May, 2020.

While some large municipalities such as Richmond Hill and Mississaugy chose not to allow retailscannabis stores, the adjoining municipalities of Grey Highlands and Southgate both decided to “opt in” under the legislation.

High Tide stated that for the three months ended Dec. 31, 2021, Crossroads generated annualized revenue of $7.6 million and annualized Adjusted earnings before interest, taxes, depreciation and amortization of $700,000.

“As consolidation in the Canadian retail cannabis space has picked up steam, we have become the acquirer of choice,” said Raj Grover, President and CEO of High Tide.

The company is keeping up its momentum of growth through acquisitions, he said, because opening new stores has been slowed down during COVID. High Tide has the goal of reaching 150 stores by the end of 2022.

As the market is changing, Crosssroads owner Bob Rowe, a Huron County resident, said he recognized that longevity would come through consolidation.

Late last year, market advisors started to predict closings especially of independent stores, due to many market factors, including lower profit margins and burgeoning store numbers.

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