High Tide buying 80 per cent stake in U.S. CBD company FABCBD for US$20.64M

A cannabis plant approaching maturity is photographed in Fenwick, Ont., on Tuesday, June 26, 2018. THE CANADIAN PRESS/ Tijana Martin
A cannabis plant approaching maturity is photographed in Fenwick, Ont., on Tuesday, June 26, 2018. THE CANADIAN PRESS/ Tijana Martin

CALGARY - Cannabis company High Tide Inc. has signed a deal to buy an 80 per cent stake in U.S. company Fab Nutrition LLC, which is focused on hemp-derived CBD products.

The Calgary-based company says it will pay US$20.64 million in shares and cash for the controlling stake and will have a three-year option to acquire the remaining 20 per cent.

The deal boosts High Tide's presence in the U.S., where it launched its CBDCity subsidiary in May 2020.

Fab Nutrition, which operates as FABCBD, was founded in 2017 and is based in Milwaukee.

Its CBD products include oils, creams, gummies and dog treats.

Under the deal, Josh Delaney, FABCBD's founder and sole shareholder, will join the High Tide team, as general manager of FABCBD.

This report by The Canadian Press was first published May 3, 2021.

Companies in this story: (TSX:HITI)