SNDL Inc. has purchased just over five percent of High Tide, the company behind the largest brand of cannabis stores in Canada, Canna Cabana. 

A notice of High Tide Inc. issuing the 4,350,000 shares to SNDL Inc. was posted on March 10, 2025. This is 5.4% of class, based on 80,896,105 common shares reported by the Issuer to be outstanding as of January 29, 2025.

Raj Grover, CEO of High Tide, posted about the issuance 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.”

Through its subsidiary Canna Cabana, High Tide is the largest cannabis retail chain in Canada. As of March 10, there are 194 Canna Cabana branded retail cannabis locations in Canada, with 79 in Ontario and 84 in Alberta. 

In addition to Canna Cabana Inc., High Tide’s subsidiaries include companies like Canadian vape and bong supplier Valiant Distribution Canada Inc., Grasscity, META Growth Corp., Jimmy’s Cannabis Shop in BC, and the Queen of Bud brand, among many others.

In its most recent quarterly report, High Tide, which is located in Calgary, Alberta, reported $522.3 million in revenue for the year ending October 31, 2024, gross profits of $142.5 million, and a net loss of $3.8 million. High Tide plans to release its financial and operational results for Q1 fiscal 2025 after market close on March 17, 2025.

SNDL Inc., which is also headquartered in Calgary, is also one of Canada’s largest private-sector cannabis retailers by store count, operating 187 locations in the most recent quarter under its three retail banners: “Value Buds”, “Spiritleaf”, and “Superette.” 

As of November 4, 2024, the Spiritleaf store count was 81 (20 corporate stores and 61 franchise stores), the Superette store count was four corporate stores, and the Value Buds store count was 102 corporate stores.

SNDL also produces and markets cannabis products for the Canadian adult-use market and the international medical cannabis market. It operates a facility in New Brunswick.

SNDL posted $236.9 million in revenue in the third quarter of 2024, with an $18.5 million loss and is expected to release its Q4 2024 report on March 18.

The company has taken, at times, what some have said is an aggressive approach to deploying its capital through direct and indirect investments and partnerships throughout the cannabis industry, which has led to numerous acquisitions. 

In Canada, the rights of shareholders with a 5% ownership interest can include the requisition of meetings and nominating directors. “The mere existence of this right is a significant source of leverage,” notes a document from Faskens [PDF], an international business law firm. “The requisition notice must give sufficient information regarding the proposed business to be discussed.”

In 2024, SNDL closed its acquisition of all remaining shares of Nova Cannabis. Around the same time, the company also announced that its stalking horse bid had been chosen as the successful bid to acquire Indiva’s business and assets. 

SNDL also announced in 2024 that it had completed the acquisition of the principal indebtedness of Delta-9 Cannabis Inc. As a result of the debt acquisition, SNDL became Delta 9’s senior secured creditor with a first priority security interest in all of the assets of Delta 9 and certain Delta 9 subsidiaries.

Delta 9 operated numerous retail locations in Manitoba and Saskatchewan, as well as a production facility in Manitoba. Another company, Simply Solventless, recently acquired Delta 9’s production facility, while retail chain FIKA acquired the company’s retail locations. 

FIKA has said it will provide up to $13 million to repay Delta 9’s secured obligations owing to SNDL Inc. A judge also recently allowed an extension for concluding Delta 9’s financial dispute with SNDL Inc.SNDL has also acquired cannabis producers like Zenabis Ltd. and Valens.

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