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High Tide (HITI) Acquires Queen of Bud to Expand Its Portfolio
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High Tide Inc. (HITI - Free Report) recently announced that it has entered into a definitive agreement to acquire Queen of Bud. High Tide is likely to expand its international brand portfolio by the acquisition.
This well-known, carefully chosen range of cannabis products is already available in Canada. Without the need for any legislative revisions, Queen of Bud’s popular ancillary products can be supplied immediately to the United States and Europe.
Price Performance
In the past six months, HITI shares have gained 1.7% compared with the industry’s rise of 7.5%. The S&P 500 has gained 14.0% in the same time frame.
Image Source: Zacks Investment Research
More on Queen of Bud Brand
Queen of Bud is a premium Canadian cannabis brand whose success stems from its commitment to providing top-notch cannabis products that are expertly crafted, drawing inspiration from the enchanted energy of crystals such as rose quartz, amethyst, shungite, blue topaz, and red jasper.
Superior cannabis cultivars that have been hand-trimmed and hang-dried are used to create Queen of Bud's sophisticated and inventive cannabis products.
Ashley Newman founded the company with the intention of delving deeper into the realm of cannabis and its potential to improve mental and physical health as well as spiritual well-being. Queen of Bud is committed to changing thoughts among individuals and raising awareness of the many advantages of the cannabis plant.
More on the Acquisition
The acquisition is a strategic investment that will strengthen High Tide’s ecosystem. It is anticipated to provide significant value to shareholders while enabling the company to maintain its flexibility without burdening its significant overhead or capital expenditures.
This is a timely move that will allow High Tide to continue growing its ever-expanding portfolio of in-house brands, as white-label brands are currently permitted in Ontario, Manitoba, and Saskatchewan and are being considered in Alberta and British Columbia.
In addition to helping High Tide in the expansion of its line of in-house cannabis brands, Ashley Newman, the global brand ambassador of the Queen of Bud, will play a key role in the creation of Queen of Bud's auxiliary product categories, which include lifestyle, home décor, and consumption accessories in addition to CBD.
Transaction Details
The deal is expected to conclude in the upcoming weeks, contingent on several factors, including the TSX Venture Exchange granting the necessary approvals.
Per the press release, the consideration for the assets acquired is likely to be $1 million. Out of the total amount, $0.1 million is likely to be paid in cash and the remaining amount in common shares of High Tide.
High Tide shares will be subject to a contractual hold period of four months and one day from the date of closing.
Industry Prospects
Per a report by Grand View Research, the global legal cannabis market size was valued at $22.1 billion in 2022 and is expected to grow at a rate of 25.5% from 2023 to 2030.
The increasing rate of legalization of cannabis and acceptance of its use in the medical field are the key factors due to which the market is expected to proliferate.
With the given market potential, High Tide’s acquisition of the Queen of Bud brand is likely to boost its cannabis business and generate additional revenues.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 51.5% compared with the industry’s 3.6% rise in the past year.
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High Tide (HITI) Acquires Queen of Bud to Expand Its Portfolio
High Tide Inc. (HITI - Free Report) recently announced that it has entered into a definitive agreement to acquire Queen of Bud. High Tide is likely to expand its international brand portfolio by the acquisition.
This well-known, carefully chosen range of cannabis products is already available in Canada. Without the need for any legislative revisions, Queen of Bud’s popular ancillary products can be supplied immediately to the United States and Europe.
Price Performance
In the past six months, HITI shares have gained 1.7% compared with the industry’s rise of 7.5%. The S&P 500 has gained 14.0% in the same time frame.
Image Source: Zacks Investment Research
More on Queen of Bud Brand
Queen of Bud is a premium Canadian cannabis brand whose success stems from its commitment to providing top-notch cannabis products that are expertly crafted, drawing inspiration from the enchanted energy of crystals such as rose quartz, amethyst, shungite, blue topaz, and red jasper.
Superior cannabis cultivars that have been hand-trimmed and hang-dried are used to create Queen of Bud's sophisticated and inventive cannabis products.
Ashley Newman founded the company with the intention of delving deeper into the realm of cannabis and its potential to improve mental and physical health as well as spiritual well-being. Queen of Bud is committed to changing thoughts among individuals and raising awareness of the many advantages of the cannabis plant.
More on the Acquisition
The acquisition is a strategic investment that will strengthen High Tide’s ecosystem. It is anticipated to provide significant value to shareholders while enabling the company to maintain its flexibility without burdening its significant overhead or capital expenditures.
This is a timely move that will allow High Tide to continue growing its ever-expanding portfolio of in-house brands, as white-label brands are currently permitted in Ontario, Manitoba, and Saskatchewan and are being considered in Alberta and British Columbia.
In addition to helping High Tide in the expansion of its line of in-house cannabis brands, Ashley Newman, the global brand ambassador of the Queen of Bud, will play a key role in the creation of Queen of Bud's auxiliary product categories, which include lifestyle, home décor, and consumption accessories in addition to CBD.
Transaction Details
The deal is expected to conclude in the upcoming weeks, contingent on several factors, including the TSX Venture Exchange granting the necessary approvals.
Per the press release, the consideration for the assets acquired is likely to be $1 million. Out of the total amount, $0.1 million is likely to be paid in cash and the remaining amount in common shares of High Tide.
High Tide shares will be subject to a contractual hold period of four months and one day from the date of closing.
Industry Prospects
Per a report by Grand View Research, the global legal cannabis market size was valued at $22.1 billion in 2022 and is expected to grow at a rate of 25.5% from 2023 to 2030.
The increasing rate of legalization of cannabis and acceptance of its use in the medical field are the key factors due to which the market is expected to proliferate.
With the given market potential, High Tide’s acquisition of the Queen of Bud brand is likely to boost its cannabis business and generate additional revenues.
High Tide Inc. Price
High Tide Inc. price | High Tide Inc. Quote
Zacks Rank & Stocks to Consider
HITI carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 51.5% compared with the industry’s 3.6% rise in the past year.