Stocks of Canadian pot company High Tide Inc (TSXV:HITI) skyrocketed by as much as 1,400 per cent after it announced 15:1 stock consolidation on Wednesday, May 12.
The cannabis-focused drug retailer has consolidated 15 shares at C$ 0.60 apiece to one share at C$9 apiece. The company has taken this move to meet the minimum share price requirement pegged by NASDAQ.
High Tide is likely to debut on the New York-based exchange by the end of this month. Its consolidated shares will start trading on the Toronto Stock Exchange Venture (TSXV) on or about Friday, May 14.
The company concluded the 80 per cent stake acquisition of Fab Nutrition LLC, a US-based e-commerce platform of hemp-made cannabidiol (CBD) goods, On May 10. The company paid US$ 20.64 million to close this deal and with a window of three years to buy the remaining 20 per cent of the online retailer at any time.
The company expects to solidify its presence within the US digital CBD marketplace through this acquisition.
Let us take a glance at this pot stock’s price movement and financials:
High Tide Inc (TSXV:HITI)
The Alberta-based firm manufactures cannabis products and provides pot wholesale services. It also commercializes pot accessories and related lifestyle products.
After shares consolidation, its price stock price stands at C$ 9 apiece, up 328.57 per cent from its 52-week low of C$ 2.1 apiece (Recorded on July 31, 2020). However, it has dropped nearly 47 per cent compared to its 52-week high of C$ 16.95 apiece (Noted on February 8, 2021).
It has zoomed almost 208 per cent since its debut in November 2020, guided by the green wave. It has a 50-day average trading volume of 2.55 million shares and a market cap of nearly 6 billion.
The pot distributor completed its business merger with cannabis retailer Meta Growth Corp in August 2020 to build a leading pot outlet chain in Canada, covering 65 locations and adding C$ 148 million in revenue yearly.
High Tide's One-Year Price Versus Moving Average Outlook Chart. (Source: Refinitiv)
At the previous close price, High Tide’s shares were trading around four per cent down from its 20 Moving Average (20 MA) of C$ 9.37 apiece, representing a short-term bear market. However, the stock could rebound to its 52-week high once it goes public on the NASDAQ Exchange and begins capitalizing on the US cannabis market through its subsidiary, Fab Nutrition.