Can High Tide’s Remexian acquisition turn it into a global cannabis leader? €26.4m deal explained

High Tide Inc. (Nasdaq: HITI | TSXV: HITI | FSE: 2LYA) has officially entered the European cannabis market with the closing of its majority acquisition of Remexian Pharma GmbH, a German-based pharmaceutical company operating in Europe’s federally regulated cannabis sector. The deal, valued at an estimated €26.4 million for a 51% stake, also includes a five-year option to acquire the remaining equity, signaling High Tide’s ambition to become a global cannabis leader.

This acquisition marks a significant milestone in High Tide’s international expansion strategy, which until now had focused largely on North America and select e-commerce verticals. Founder and CEO Raj Grover described the transaction as a “transformational moment” that repositions High Tide from a Canadian success story to a cannabis company with European scale and upside.

“With this acquisition, we are planting our flag in Europe’s largest regulated cannabis market,” said Grover, emphasizing that the deal gives the group a scalable operating footprint across the continent.

How does the Remexian acquisition reflect High Tide’s global cannabis growth strategy?

The acquisition was finalized based on a preliminary enterprise valuation of €53.4 million, derived from a multiple of 3.64065 times Remexian’s annualized adjusted EBITDA for the six months ending March 31, 2025. High Tide’s purchase of the 51% equity stake includes a combination of cash, vendor financing, and stock:

The deal structure comprises €7.65 million in cash, a €7.65 million seller loan with a 7% annual interest rate maturing in December 2029, and approximately 5.86 million High Tide shares valued at €11.1 million. The shares were priced based on a 10-day volume-weighted average on the Nasdaq ending August 8, 2025, and are subject to a standard holding period of four months and one day.

This acquisition also received conditional approval from the TSX Venture Exchange and awaits final confirmation.

Crucially, the structure includes both a Call Option and a Put Option for the remaining 49% of Remexian. High Tide can exercise the Call Option after 24 months at multiples of either 4x or 3.64065x trailing EBITDA, depending on the timing of execution. The Put Option allows Remexian’s sellers to force a sale to High Tide under similar terms. Both options require partial cash settlement, with the Call Option mandating at least 40% in cash and the Put Option at least 30%.

What makes Europe an attractive cannabis market for High Tide’s next growth phase?

Analysts have long viewed Europe—particularly Germany—as the most compelling growth opportunity for cannabis firms seeking regulated expansion beyond North America. Germany, with its mature pharmaceutical infrastructure and clear federal framework, stands apart from fragmented markets in other jurisdictions. According to Prohibition Partners’ 10th Edition European Cannabis Report, Germany represents the largest and most influential regulated market on the continent.

Institutional sentiment toward cross-border cannabis plays has remained cautiously optimistic, especially as more U.S.-based companies eye Europe for its potential scale and legal clarity. High Tide’s early entry via Remexian may give it a first-mover advantage in B2B and B2C channels alike.

By securing a controlling interest, High Tide gains access to Remexian’s regulatory licenses, supply chain relationships, and in-market consumer data—key assets that would take years to develop organically. This also de-risks market entry, allowing High Tide to execute its Canadian-tested operational playbook with local expertise.

How does High Tide plan to integrate Remexian with its global cannabis retail and digital ecosystem?

The Canadian cannabis retailer and operator brings a vertically integrated model that spans physical stores, digital innovation, accessory platforms, and CBD distribution. Its flagship retail brand Canna Cabana is the second-largest cannabis retail chain globally, with 207 outlets across six Canadian provinces.

High Tide’s retail stack also includes Fastendr, a kiosk-based shopping experience that supports streamlined browsing and order fulfillment. This could be localized for European deployment, especially in pharmacy and dispensary contexts.

The company also operates a large digital ecosystem of e-commerce platforms including Grasscity.com, Smokecartel.com, and Dailyhighclub.com, which collectively offer consumption accessories to a global customer base. Its CBD and wellness footprint—anchored by Nuleaf Naturals and Blessed CBD—positions it to cross-sell into the European wellness market while complying with country-specific cannabinoid regulations.

With Remexian’s pharma-level capabilities and European regulatory positioning, High Tide has the opportunity to plug its vertically integrated supply chain into a higher-margin international market. Long-term, analysts expect the group to replicate its Canadian discount club retail model, a format that has gained traction in value-conscious cannabis segments.

What institutional signals and financial metrics should investors focus on after this deal?

The transaction is likely to be viewed positively by institutional investors who have been pushing for Canadian cannabis firms to diversify away from domestic oversupply and plateauing demand. The acquisition provides both geographic and revenue diversification while maintaining exposure to regulated channels.

The €26.4 million upfront investment reflects a calculated use of equity and debt that allows High Tide to preserve liquidity while gaining optionality over full ownership. The blended use of cash, seller financing, and shares also signals balance sheet discipline, a factor that could support positive revisions from analysts tracking debt-to-EBITDA and free cash flow metrics.

The deal’s valuation multiple of 3.64065x adjusted EBITDA appears reasonable for a pharmaceutical-grade operation in Germany, especially given the optionality around the remaining 49% equity. High Tide’s insistence on trailing EBITDA benchmarks—rather than forward projections—suggests a conservative and data-backed approach to valuation.

From a technical standpoint, the transaction remains subject to final TSXV approval, though no material objections have been raised.

What future milestones and expansion signals should cannabis investors watch next?

Looking ahead, investors will be monitoring how quickly High Tide can integrate Remexian’s operations into its global cannabis architecture. Expansion into other EU countries—where regulations are increasingly harmonizing—could follow, particularly if Germany acts as a springboard for broader market entry.

High Tide is also likely to test its accessory and digital retail platforms within the European framework, tapping synergies between wellness, recreational, and pharmaceutical product categories.

Institutional sentiment could improve further if the company issues guidance or data around EBITDA contributions from Remexian in upcoming quarters. Investors may also expect updates around exercising the Call Option for full acquisition, particularly if macroeconomic conditions remain favorable.

Given its operational maturity in Canada, investor visibility on execution risk remains relatively high—an important factor as global cannabis stocks continue to experience valuation pressure and regulatory uncertainty in key markets like the U.S.