Canadas largest cannabis retailer is now part of High Tide

High Tide Inc. (CSE: HITI) is planning to purchase Meta Growth Corp. (TSXV: META), a business that would create Canada's largest cannabis retail chain. On Friday, Calgary-based High Tide said the combined retail company will have a total of 63 stores in Ontario, Alberta, Manitoba and Saskatchewan. The companies said they plan to nearly double their commercial space to a total of 115 locations by the end of 2021, with a focus on Ontario, Canada's largest weed market. Under the reported full stock deal, Meta Growth shareholders will receive 0.824 High Tide shares for each unit owned, based on a price of $ 0.13. Upon completion of the transaction, Meta Growth shareholders will own an estimated 45.6 percent of the combined company. "The combination with Meta marks a turning point in High Tide's evolution as we become Canada's largest and most powerful cannabis retailer," said Raj Grover, CEO of High Tide, in a statement. Due to the combined efficiency and cross-selling opportunities, both companies expect positive earnings before interest, taxes, depreciation and amortization. Annual cost savings of $ 8-9 million are expected within the first year of closing, and the two companies estimate annual sales at $ 133 million. The new super-retailer would compete with Fire & Flower (TSX: FAF), the current market leader in the country with 46 stores operating. The Edmonton-based company began a pilot with Circle K last month by opening two pot holders next to two convenience stores in Alberta. Circle K owner, Alimentation Couche-Tard Inc. (TSX: ATD.B) made a strategic investment of $ 26 million and a 15 percent interest in Fire & Flower last year. With more than 1,000 cannabis stores operating in Canada, retail sales have grown steadily. The Canadian Bureau of Statistics reported Friday that June sales hit $ 201 million, 7.9 percent more than in May.