High Tide Enters German Medical Cannabis Market Via Acquisition Of Purecan GmbH
High Tide, a leading community-grown, retail-forward cannabis enterprise, has officially entered the medical cannabis market in Germany through a deal with Purcan GmbH. High Tide’s acquisition will give the company a majority stake in Purecan’s operations, German import license, warehousing and logistics infrastructure, and in-development telemedicine portal.
“High Tide intends to leverage its Canadian Licensed cannabis procurement expertise, built on over $1.5 billion of the Company’s cumulative cannabis sales since Canadian cannabis legalization, to build a significant, market-leading German medical cannabis business unit.” the company stated in a news release.
“With German medical cannabis sales increasing rapidly after the adoption of the Consumer Cannabis Act this past April, this acquisition provides a base for the Company to expand into other European medical cannabis markets in due course.” the company also stated.
Lawmakers in Germany adopted the first provisions of the nation’s new adult-use cannabis legalization model on April 1st, 2024, with cultivation association provisions launching in Germany on July 1st, 2024. Medical cannabis was first legalized in Germany in 2017.
“I am thrilled to announce that High Tide is taking a significant step towards becoming a truly global cannabis company. By acquiring a 51% stake in Purecan, including its European wholesale and import license, its fully built warehousing and logistics infrastructure, and in-development telemedicine platform, we are strategically positioned to leverage our robust networks and relationships with Canadian licensed producers. With almost half of all German medical cannabis imports coming from Canada, this acquisition paves the way for us to emerge as a leading supplier of medical cannabis from Canada into Germany, potentially replicating our market share success in Canada.” said Raj Grover, Founder and Chief Executive Officer of High Tide.
“As I’ve said before, our German strategy is multipronged. This highly accretive acquisition provides immediate market entry into Germany while we explore opportunities for consumer research in collaboration with the Food and Drug Agency, aligning with the ordinance recently signed by Germany’s Agriculture Minister,” he also said.
“In addition to capitalizing on Germany’s rapidly expanding medical cannabis market, the Purecan acquisition brings a company with strong cultural and operational alignment into the High Tide family. This alignment has been reinforced through months of in-depth collaboration and is reflected in Purecan’s impressive financials, high margins, and lean operations. We anticipate this business unit will deliver a healthy margin profile, further strengthening our existing Canadian and international business lines,” added Mr. Grover.
“Since our very first meeting with Raj and the High Tide team a few months ago, it became apparent to us that there were significant cultural and operational alignments between our companies. Given that demand for medical cannabis in Germany is currently outpacing supply, this merger provides Purecan with a unique opportunity to tap into High Tide’s unmatched procurement expertise and relationships with Canadian licensed producers who currently provide half of all medical cannabis imports into Germany. We look forward to a fruitful partnership between our two teams to create long-term value for all stakeholders involved,” said Dr. Ehsan Omari, Chief Medical Officer, Purecan GmbH.