High Tide Inc. has paused its previously announced acquisition of 51% of Germany’s Purecan GmbH.

The deal, announced for approximately €4.8 million in January, would have given the Canadian cannabis retailer commercial exposure to the German market. However, during the company’s due diligence, High Tide said it had “reassessed the optimal structure for this transaction and is now exploring alternative arrangements” with Purecan that would allow High Tide to maintain its planned commercial entrance into the German market.

There is no guarantee that a new deal will go through, and High Tide plans to update the market as required. In a press release, the Calgary-based company says it continues to be committed to the German medical cannabis market and will explore both alternative structures with Purecan and other opportunities for entry into Germany.

High Tide’s retail chain, Canna Cabana, is the largest cannabis retail chain in Canada. It currently has nearly 200 locations in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.

The new announcement comes just days after German Conservative Party leader Friedrich Merz won the German election on Sunday, February 23. The Conservatives had previously said they would overturn Germany’s legalization of cannabis if they took control.

Germany legalized cannabis in March 2024. The law came into effect in two main phases: the first phase, which allowed for personal cannabis cultivation and possession, came into force on April 1, and cultivation clubs were allowed in July. 

Phase two was supposed to allow for a medical sales model, but shifting domestic politics slowed that process down. However, a limited pilot project for medical sales announced in December could allow for cannabis to be sold in retail stores in up to 25 different German cities, supplied by authorized cannabis wholesalers in the country. 

The status of that program and cannabis legalization in general, following the recent elections, remains in question.

Germany is one of the world’s largest importers of medical cannabis, with a significant number of those imports coming from Canada. Canada’s Tilray/Aphria and Aurora operate two of the three approved medical cannabis production facilities in the country.

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