Canadian cannabis retailers High Tide Inc. and Meta Growth Corp. announced plans to merge on Friday, a move that would create the country's largest pot shop network amid increased spending for recreational cannabis.
The two companies said in a statement Friday that the combined retailer will have 63 licensed cannabis stores across Canada with plans to double that in a year. The companies expect the deal to result in operational savings of about $8 million to $9 million and is expected to result in the company reporting positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
High Tide chief executive officer Raj Grover told BNN Bloomberg in a phone interview that the deal will help the retailer penetrate the Ontario market after exhausting its options in Alberta.
"The growth prospects are very limited in Ontario right now, but this deal will give us 10 stores until Ontario gets its act together," Grover said.
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