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Canadian cannabis giant High Tide Inc. announced its acquisition of Harrison Baum‘s DHC Supply LLC, the operator of Daily High Club, for $10 million on Friday, June 25.
Daily High Club, a U.S. based subscription service that sends a variety of cannabis-related products to its patrons’ doors, is now completely owned by High Tide via its subsidiary High Tide USA Inc.
With more than 15,000 members to the service, Daily High Club has built in the “ideal customers for High Tide to potentially launch cannabis subscription boxes in the event of U.S. federal legalization.”
“This subscription box model is complementary to our existing accessories e-commerce portfolio, and as such creates numerous opportunities for potential synergies,” said High Tide’s President and Chief Executive Officer Raj Grover.
The deal consists of $6.8 million in common shares of High Tide and a further $3.3 million in cash.
As Baum’s Daily High Club is the country’s #1 marijuana-related subscription service, the deal is almost guaranteed to be a worthwhile long-term investment for High Tide.
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