High Tide has signed an LOI with Berlin-based health and life science company Sanity Group to better take advantage of potential German adult-use cannabis legalisation.
With progress on recreational cannabis legislation expected in Germany this spring, the LOI is designed to leverage synergies between both complementary companies.
High Tide believes that Sanity Group is the best-positioned potential partner in its home market of Germany as is has a well-established track record in Germany with respect to medical cannabis, finished pharmaceuticals and cannabinoid-based consumer goods.
Founder and CEO of High Tide, Raj Grover, stated: “We want to be well positioned to bring this success to the German market, should the government proceed with its publicly stated goal to legalise cannabis adult use.
“This is why we are proud to partner with a top player in the German medical cannabis space like Sanity Group, particularly since our business models are complementary in nature.”
Sanity Group and High Tide intend to work together on go-to-market strategies, identification of quality M&A opportunities, sourcing of high-quality real estate, expansion within European markets, and regulatory compliance topics such as licensing and government outreach.
Subject to relevant laws and regulations, High Tide, aims to support Sanity Group in building a retail consumer brand strategy using its decade-long experience serving cannabis consumers in Canada, the United States and Europe. It will also be providing targeted assistance in product display and advertising opportunities across High Tide’s assets in Germany and other European markets in due course.
CEO of Sanity Group, Finn Hänsel, added: “We are very excited and proud to lay the foundation for a strong and trustful partnership in case of recreational cannabis legalisation in Germany with a top player like High Tide through this letter of intent.
“High Tide stands for great experience and expertise in building retail cannabis brand strategies like no other player. We strongly believe in the mutual value of this partnership.”