Retail-focused cannabis corporation High Tide Inc. is purchasing Daily High Club, one of the five most popular global consumption accessories e-retailers.
With this acquisition, High Tide USA Inc., a wholly-owned U.S. subsidiary of Canada-based High Tide, will acquire 100% of the issued and outstanding shares of DHC Supply LLC, operating as Daily High Club. High Tide’s portfolio will include three out of the five top e-commerce platforms for consumption accessories globally, totaling 91 million site visits in 2020, including 23 million associated with Daily High Club.
High Tide will bolster its social media presence by gaining access to Daily High Club's almost 800,000 followers on Instagram and over 75,000 followers on TikTok. The company will also gain access to Daily High Club's more than 15,000 Canadian subscription box members, creating a customer base for the potential launch of cannabis subscription boxes in the event of U.S. federal legalization.
"In alignment with our intention to become a dominant player in the U.S. e-commerce marketplace through a combination of organic growth and accretive acquisitions, specifically targeting businesses with strong brand loyalty, I am thrilled to announce the acquisition of Daily High Club," said Raj Grover, president and CEO of High Tide. "Daily High Club stood out to us because it is an increasingly popular consumption accessories online retailer, with a rapidly growing subscription box model which can easily be tailored to include cannabis products 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."
Harrison Baum, founder and CEO of Daily High Club, will join the High Tide team on closing as director of digital marketing to oversee all social media initiatives for High Tide globally.
Although currently operating in the hemp-derived CBD and consumption accessory space, High Tide intends to expand its cannabis retail network into the U.S. in the event of federal legalization, through cannabis subscription boxes, mature e-commerce sites, and brick-and-mortar locations. Based in Alberta, High Tide operates 87 stores in Canada, as well as several e-commerce and wholesale brands and a subscription box offering.
The transaction is expected to close around the end of June 2021.