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SNDL Inc. (NASDAQ: SNDL) said in regulatory filings that it picked up 5.4% of High Tide’s shares on March 10. The company disclosed the purchase in a Schedule 13G form that reported SNDL acquired 4.35 million shares of the Canadian retailer.
The transaction was first reported by StratCann.
While neither company issued a press release, Raj Grover, CEO of High Tide, acknowledged the transaction in a post on X on March 13:
We acknowledge today’s filing from SNDL, which underscores the significant undervaluation of our shares and serves as further validation of the superior business we have built compared to our peers.
Our board and management team have carefully reviewed this matter, and we remain fully committed to acting in the best interests of our shareholders. We will continue to closely monitor the situation and take decisive action as necessary to protect and enhance shareholder value.”
Users on X responded to Grover’s post with concern that SNDL could be angling for a takeover.
SNDL is Canada’s largest private-sector cannabis retailer by store count. The company operates 187 locations across several provinces with stores under the Value Buds, Spiritleaf and Superette brands. The company last reported its earnings in September 2024, with total revenue in the third quarter of C$236.9 million.
At the time, Green Market Report wrote that SNDL told investors it completed its acquisition of Nova Cannabis on Oct. 21 by buying the remaining 35% for roughly C$40 million. In August, SNDL also told the market that its stalking horse bid was chosen in the acquisition of the Indiva Group‘s business and assets, a deal that SNDL said on Nov. 4, 2024, successfully closed for approximately C$22.7 million.
The company is scheduled to report fourth-quarter and annual results on March 18.
High Tide is the largest single cannabis retail brand in Canada with more than 190 Canna Cabana stores. The company last reported earnings in January with revenue for the fourth quarter coming in at C$138.3 million, up sequentially from C$131.7 million.
Green Market Report wrote that High Tide reported that its same-store sales increased just 0.4% year-over-year and 4% sequentially. If not for “non-cash impairment charges,” High Tide reported, it would have ended the year in the black, with C$1.2 million in net income.
High Tide is scheduled to report its first-quarter results on March 17.
“}]] [[{“value”:”Social media commenters speculated that SNDL could be angling for a takeover.
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