High Tide $HITI Acquires 51% of Remexian, Adding C$100M Revenue and C$24M Annualised EBITDA

High Tide Inc., a prominent player in the cannabis retail and distribution sector, has made a significant strategic push into the European market with its latest acquisition. The company announced on 14 August 2025 the signing of a definitive agreement to acquire a 51% stake in Remexian Pharma GmbH, a key distributor in Germany’s burgeoning medical cannabis industry. This move not only marks High Tide’s entry into one of Europe’s largest and most dynamic cannabis markets but also promises to substantially enhance its revenue streams and profitability metrics. With Germany’s recent regulatory reforms easing access to medical cannabis, the acquisition positions High Tide to capitalise on a market projected to grow exponentially in the coming years.

Strategic Rationale and Market Context

The German medical cannabis market has undergone transformative changes following the partial legalisation of cannabis in April 2024, which removed it from the narcotics list and simplified prescriptions for medical use. This has led to a surge in demand, with imports of cannabis flower reaching 43 tonnes in the second quarter of 2025 alone. Remexian Pharma, based in Germany, has established itself as a major importer and wholesaler, reportedly accounting for 16% of those imports by volume in that period. High Tide’s acquisition of a controlling stake in the firm aligns perfectly with these trends, providing immediate access to a well-entrenched distribution network and a portfolio of high-demand products.

From a financial perspective, the deal is accretive. Remexian generated approximately €65 million in revenue over the trailing 12 months ending in the first quarter of 2025, translating to an annualised figure of around C$100 million at current exchange rates. More compelling is the EBITDA contribution: Remexian posted €7.5 million in EBITDA for the six months ending 31 March 2025, suggesting an annualised run rate of about €15 million, or roughly C$24 million. For High Tide, which reported fiscal 2024 revenues of C$522.3 million, this acquisition could boost top-line growth by nearly 20% on a pro forma basis, assuming full consolidation of the majority stake.

Analysts have noted the favourable valuation of the transaction. High Tide is acquiring the 51% stake for €27.2 million, structured as 42% in shares, 29% in cash, and 29% in loans. This equates to an enterprise value multiple of approximately 3.6 times Remexian’s trailing EBITDA, a discount compared to industry averages for similar assets in mature cannabis markets. Such pricing reflects High Tide’s negotiating leverage and the synergies expected from integrating Remexian’s operations with its existing retail-forward model.

Implications for High Tide’s Growth Trajectory

High Tide has built its reputation on a diversified business model encompassing retail stores under brands like Canna Cabana, e-commerce platforms, and ancillary services. The company’s Cabana Club loyalty programme, boasting over 5 million members including 76,000 elite subscribers as of its fiscal 2024 results, underscores its strength in customer retention and data-driven marketing. Entering Germany via Remexian extends this ecosystem into wholesale distribution, potentially opening doors to pharmacy partnerships and direct-to-patient sales channels.

Germany’s medical cannabis sector is poised for robust expansion. According to industry estimates, the market could reach €1.5 billion by 2027, driven by increasing physician prescriptions and patient access. High Tide’s move comes at a pivotal time, as competitors like Aurora Cannabis and Tilray have also ramped up their European presence. However, Remexian’s established footprint—having sold 7 tonnes of cannabis flower in Q2 2025—gives High Tide a competitive edge in supply chain reliability and product variety.

On the profitability front, High Tide has demonstrated operational discipline. The company achieved its sixth consecutive quarter of positive free cash flow in fiscal 2024, generating C$5.9 million in the final quarter. Integrating Remexian’s high-margin wholesale operations could further bolster margins, which stood at around 28% in High Tide’s core retail segment last year. Analyst models suggest that post-acquisition, High Tide’s adjusted EBITDA could rise by 15-20% annually, assuming modest synergies in procurement and logistics.

Financial Metrics and Market Reaction

As of 14 August 2025, High Tide’s shares traded at US$2.55 on the Nasdaq, reflecting a 3.66% increase from the previous close of US$2.46. The stock opened at US$2.53, with a daily range of US$2.49 to US$2.60 and volume exceeding 1.19 million shares—well above the 10-day average of 359,970. This uptick aligns with positive investor sentiment surrounding the acquisition news, pushing the share price above its 50-day moving average of US$2.30.

Valuation-wise, High Tide trades at a forward price-to-earnings ratio of 63.75 based on expected earnings per share of US$0.04 for the current year. While this multiple appears elevated, it factors in the company’s growth prospects, including the German expansion. The trailing-twelve-month EPS stands at -US$0.09, but forward estimates point to breakeven or slight profitability. With a market capitalisation of US$207 million and 81.2 million shares outstanding, the stock’s price-to-book ratio of 1.48 suggests it is reasonably valued relative to its book value of US$1.73 per share.

Over the past 52 weeks, High Tide’s shares have ranged from US$1.64 to US$3.62, with the current price sitting comfortably in the upper half. The 200-day moving average of US$2.55 indicates stability, though the stock has yet to recapture its yearly high. Investor sentiment, as gauged by recent analyst reports, remains bullish; for instance, sources like Yahoo Finance highlight the acquisition as a catalyst for re-rating the stock towards peers in the international cannabis space.

Risks and Forward Outlook

While the acquisition offers clear upside, it is not without risks. Regulatory hurdles in Germany, such as ongoing debates over recreational legalisation and import quotas, could impact growth. Currency fluctuations between the euro and Canadian dollar may also affect reported figures, given High Tide’s financial reporting in CAD. Additionally, integration challenges—merging Remexian’s operations with High Tide’s—could lead to short-term disruptions.

Looking ahead, analyst-led forecasts project High Tide’s revenue to exceed C$600 million in fiscal 2025, incorporating the partial-year contribution from Remexian. EBITDA margins are expected to improve to 10-12%, driven by scale efficiencies. If Germany progresses towards full recreational legalisation, as some policymakers advocate, High Tide could pivot Remexian towards adult-use distribution, unlocking further value.

In a sector often plagued by overpromising and underdelivering, High Tide’s disciplined approach—evidenced by consistent cash flow positivity—sets it apart. This acquisition not only diversifies its geographic footprint but also reinforces its position as a consolidator in the global cannabis industry. Investors eyeing exposure to Europe’s cannabis boom may find High Tide’s latest manoeuvre a compelling entry point, provided they weigh the inherent volatilities of the space.

Key Financial Highlights

This table summarises High Tide’s key trading metrics, underscoring the market’s initial endorsement of the German expansion. As the deal closes—expected in the coming months—further updates on synergies and performance will be crucial for sustaining momentum.

References

• High Tide Inc. (2025, August 14). High Tide to become major player in German medical cannabis market through acquisition of majority stake in Remexian Pharma GmbH. PR Newswire. https://www.prnewswire.com/news-releases/high-tide-to-become-major-player-in-german-medical-cannabis-market-through-acquisition-of-majority-stake-in-remexian-pharma-gmbh-302530131.html
• Stratcann. (2025). High Tide to acquire a majority stake in Remexian Pharma GmbH, marking entry into the German market. https://stratcann.com/news/high-tide-to-acquire-a-majority-stake-in-remexian-pharma-gmbh-marking-entry-into-the-german-market/
• Yahoo Finance. (2025). High Tide to become major player in German medical cannabis market. https://finance.yahoo.com/news/high-tide-become-major-player-120000332.html
• Cannabis Business Times. (2025). High Tide to acquire Remexian; merger details and strategic implications. https://www.cannabisbusinesstimes.com/business-issues-benchmarks/mergers-and-acquisitions/news/15753040/high-tide-to-become-major-player-in-german-medical-cannabis-market-through-272-million-acquisition
• MJBizDaily. (2025). Cannabis retailer High Tide entering German market via acquisition. https://mjbizdaily.com/cannabis-retailer-high-tide-entering-german-market-via-acquisition/
• New Cannabis Ventures. (2025). German retail acquisition pending for High Tide. https://www.newcannabisventures.com/german-retail-acquisition-pending-for-high-tide/
• StockTitan. (2025). High Tide acquisition announcement and market response. https://www.stocktitan.net/news/HITI/high-tide-to-become-major-player-in-german-medical-cannabis-market-7vvlahjgt812.html
• IT-Boltwise. (2025). High Tide stärkt Marktposition durch Übernahme von Remexian Pharma. https://it-boltwise.de/high-tide-staerkt-marktposition-durch-uebernahme-von-remexian-pharma.html
• Börsen-Zeitung. (2025). High Tide erwirbt Mehrheitsbeteiligung an Remexian Pharma GmbH. https://www.boersen-zeitung.de/ticker/irw-press-high-tide-inc-high-tide-erwirbt-mehrheitsbeteiligung-an-remexian-pharma-gmbh-und-wird-damit-zum-hauptakteur-im-deutschen-markt-fuer-medizinisches-cannabis
• Ad-Hoc News. (2025). Analyst commentary and share performance. https://ad-hoc-news.de/boerse/news/analysen/high-tide-inc-ca42981e4013/68114605
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