CALGARY, Alberta, November 29, 2021 - PRESS RELEASE - High Tide Inc. (High Tide), a retail-focused cannabis company with bricks and mortar as well as global e-commerce assets, is pleased to announce that it has completed its acquisition of an 80% interest in NuLeaf Naturals, LLC (NuLeaf ) for U.S. $31.2 million, and will have a three-year option to acquire the remaining 20% of NuLeaf at any time.
Founded in 2014 with its headquarters in Denver, Colo., NuLeaf focuses on producing and distributing premium cannabinoid wellness products. It has received over 25,000 verified 5-star customer reviews through its e-commerce platform. NuLeaf can produce 60,000 plant-based softgels per hour and is one of few manufacturers in the United States that can make a vegan softgel. With heightened consumer interest in health-focused and sustainable products, plant-based offerings are primed for growth. NuLeaf has a substantial distribution reach in the natural products channel and recently secured an expansion with Sprouts Farmers Market from 33 retail locations to an additional 235 stores. It has quickly grown to become a well-known brand for premium cannabinoid wellness products across the U.S., with its product portfolio including Multicannabinoid tinctures, softgels and topicals. NuLeaf had over 5.1 million site visits and an average order value of U.S. $120 million throughout the last year. Since its inception, NuLeaf has served approximately 330,000 unique customers through its e-commerce platform and hundreds of thousands more through its other distribution channels. Upon closing, NuLeaf will have about U.S. $500,000 of inventory and approximately U.S. $500,000 of cash.
This is High Tide’s sixth acquisition in the global e-commerce space and third in the CBD space in 2021. These transactions have collectively contributed to increasing its annual run-rate international revenue from approximately $10.6 million at the end of Oct. 31, 2020, to roughly $80 million annual run-rate at the end of Nov. 30, 2021.
