rewrite this title and make it good for SEOCannabis retailer High Tide entering German market via acquisition

After a false state earlier this year, Canadian cannabis retailer High Tide said Thursday it will finally enter German medical marijuana market.

In a 27.2 million-euro deal ($31.7 million), High Tide will acquire 51% of Remexian Pharma GmbH, an established pharmaceutical company created to import and wholesale medical marijuana.

The deal follows an earlier move for a German company High Tide announced and abandoned earlier this year.

“Remexian is an ideal match for us – not only in its commitment to discount pricing but also in its operational approach, which mirrors our lowest price guarantee in Canada,” High Tide founder and CEO Raj Grover said.

“We took our time evaluating potential partners and couldn’t be more excited to join forces with the best-in-class team that built Remexian into a national leader.”

New partner after previous deal fails

The estimated 2.72 million euro purchase price is broken down as follows:

42% in common shares of High Tide priced at US$2.19
29% in cash
and 29% in loans from the sellers, which will mature on Dec. 31, 2029 and bear 7% annual interest paid quarterly.

The deal will add about $100 million in revenue to High Tide, Grover said.

Remexian has a fully certified European Union Good Distribution Practices warehouse and is licensed to import cannabis into Germany from 19 countries, including Canada which represents about 33% of its total imports.

Earlier this year, High Tide stepped back from a deal it had with cannabis importer Purecan GmbH to enter Germany’s medical market after conducting due diligence.

Since Germany passed the Consumer Cannabis Act in April 2024, the demand for medical marijuana in the country has continued to accelerate.

Germany’s high demand for cannabis

The number of medical marijuana patients has risen from 250,000 to nearly 900,000 over the last year, resulting in a threefold increase in import volumes and annual revenue approaching 1 billion euros.

Germany imported a record of about 41 tons of medical cannabis during the first quarter this year – nearly 4.6 times the amount it imported in the same quarter of 2024, according to the nation’s Federal Institute for Drugs and Medical Devices (BfArM).

Second-quarter exports increased to more than 47 tons, according to recent data.

A number of Canadian companies are exporting their products overseas in the face of a saturated market and intense domestic competition.

Canada’s volume of cannabis exports to Germany doubled from 16,895 kilograms (roughly 37,247 pounds) in 2023 to 33,155 kilograms in 2024, according to BfArM.