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Acquisition

High Tide Continues to Expand U.S. E-Commerce Presence Through Acquisition of Daily High Club

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High Tide Continues to Expand U.S. E-Commerce Presence Through Acquisition of Daily High Club
  • High Tide adds another top e-commerce platform to its portfolio which will now include 3 out of the top 5 most popular e-commerce platforms for consumption accessories globally totaling 91 million site visits in 2020, including 23 million associated with Daily High Club alone.1
  • High Tide gains access to Daily High Club’s over 15,000 subscription box members who are ideal customers for High Tide to potentially launch cannabis subscription boxes in the event of U.S. federal legalization.
  • High Tide bolsters its online presence, by gaining access to Daily High Club’s almost 800,000 followers on Instagram and over 75,000 followers on TikTok.
  • With over one million accessories sold under the Daily High Club name, High Tide adds a company to its portfolio with proven brand equity.
  • Transaction is immediately accretive as Daily High Club generated US$9.4 million in net revenue and US$1.2 million in EBITDA during the 12 months ended April 2021.
  • Pro forma for the acquisition, High Tide’s revenue run rate in the U.S. exceeds CAD$50 million.

High Tide Inc. (“High Tide” or the “Company“) (TSXV: HITI) (Nasdaq: HITI) (FRA: 2LYA), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that it is taking another step towards solidifying itself as the leader within the U.S. e-commerce marketplace for consumption accessories by entering into a definitive agreement (the “Acquisition Agreement“) pursuant to which High Tide USA Inc., a wholly-owned U.S. subsidiary of the Company, will acquire 100% of the issued and outstanding shares of DHC Supply LLC (the “Transaction“) operating as Daily High Club (“Daily High Club“).

“In alignment with our intention to become a dominant player in the U.S. e-commerce marketplace through a combination of organic growth and accretive acquisitions, specifically targeting businesses with strong brand loyalty, I am thrilled to announce the acquisition of Daily High Club,” said Raj Grover, President and Chief Executive Officer of High Tide. “Daily High Club stood out to us because it is an increasingly popular consumption accessories online retailer, with a rapidly growing subscription box model which can easily be tailored to include cannabis products in the event of U.S. federal legalization. This subscription box model is complementary to our existing accessories e-commerce portfolio, and as such creates numerous opportunities for potential synergies. It’s my pleasure to welcome Harrison and the DHC team into our High Tide family,” added Mr. Grover.

“I am extremely excited to be joining the High Tide team and see a huge opportunity to boost High Tide’s brands the same way we built our loyal following for Daily High Club,” said Harrison Baum, Founder and Chief Executive Officer of Daily High Club. “Daily High Club’s social media dominance, coupled with High Tide’s vast manufacturing capabilities and mature e-commerce platforms should yield meaningful synergies. I could not be more thrilled to be part of the High Tide family,” added Mr. Baum.

Strategic Highlights

With over 10 years of experience in the cannabis accessory sector, including through our subsidiaries Grasscity and Smoke Cartel, High Tide is constantly exploring opportunities to further increase its share in the growing consumption accessories market. Daily High Club’s consumption accessories subscription box model, with over 15,000 and growing active monthly subscribers, allows the Company to ensure this Transaction will be immediately accretive through cross-selling opportunities, and offering subscription box memberships across its other e-commerce platforms, including Grasscity.com and Smokecartel.com. Although currently operating in the hemp-derived CBD and consumption accessory space, High Tide intends to expand its cannabis retail network into the U.S. in the event of federal legalization, through cannabis subscription boxes, mature e-commerce sites and bricks and mortar locations.

Acquisition

Digital Paper App Goodnotes Acquires Korean AI Startup, Dropthebit, to Accelerate Development of AI Features

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Goodnotes, the leading digital paper app, has announced that it has acquired Dropthebit, the creators of Traw, a service that automatically organizes meeting, lecture, and video content into summarized notes and videos. Following the acquisition, Traw’s generative AI technology will be further enhanced and adopted into the Goodnotes platform.

Kyumin Sim, former CEO and Co-Founder of Traw (left) and Steven Chan, CEO and Founder of Goodnotes.

Since its launch in 2020, Traw has focused its efforts on using technology to automate notes creation, both for a user’s own materials and for the content they find online. Following a seed investment led by Capstone Partners and KB Investment, Dropthebit launched Traw’s initial offering, Traw Whiteboard, in 2022. This smart digital whiteboard for lectures and meetings automatically recorded when a user spoke or drew on the board. Traw then automatically edited the video into meeting minutes with subtitles and distilled the video into a document for easy reading and editing. Last May, the company introduced Traw AI, a tool that automatically organized and summarized YouTube video content. Traw AI could create short video or textual summaries and even extract key information from videos into a table format, transforming the research process.

While this comes as Goodnotes’ first acquisition, this is not the company’s first venture in investment aimed at accelerating improvements to the overall user experience. In late 2023, Goodnotes invested $1.9M into South Korea’s largest digital stationery platform, WeBudding. This strategic investment was the first within a larger initiative to partner with rising startups that offer technology or services that complements the burgeoning digital paper space. AI innovation has been a particular focus for Goodnotes following the 2023 launch of Goodnotes 6, which included the world’s first generative AI for handwritten text and thereby transformed Goodnotes into the world’s first AI-powered digital paper company.

“Like many M&As, the meeting of Goodnotes and Traw was like fitting together forgotten puzzle pieces,” said Kyumin Sim, former Traw co-founder and CEO and now a product lead at Goodnotes. “We’ve put a lot of thought into what digital note-taking should look like, so it’s especially an honor to collaborate with Goodnotes, the world’s most popular note-taking app. I’m excited about the new features this will inspire and the value we’ll bring to many people.”

In addition to leveraging the skilled Traw team to create new ways to enhance AI note-taking features, Goodnotes plans to explore extending its offerings beyond “pen and paper” note-taking, incorporating modalities beyond the stylus, and eyeing new mediums to integrate into the platform.

“When I met the Traw team for the first time in Seoul, I knew right away that the AI tools they’ve built for audio and video recordings are a natural fit for Goodnotes,” said Steven, CEO at Goodnotes. “I was really impressed by not only their innovative ideas, but also their passion and drive. We feel very fortunate to be in a position to acquire small, capable teams like Traw to accelerate our roadmap.”

About Goodnotes
Goodnotes is the leading AI digital paper used by more than 24 million monthly users worldwide. Launched in 2011, Goodnotes started as an improvement to physical paper notes — introducing the ability to take handwritten digital notes, search handwritten text, and organize everything into a digital library. Today, Goodnotes is pioneering generative AI for digital handwriting in the productivity space. Goodnotes was most recently named Apple’s 2022 iPad App of the Year.

About Dropthebit
Dropthebit, established in 2020, is a startup that has been founded to create services to improve everyone’s work efficiency. Its first product, ‘Traw,’ is a service that automatically organizes all content from meetings and lectures on a whiteboard into videos and transcripts. Since this year, it has been launching ‘Traw AI,’ which uses AI technology to organize and convert various data easily.

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Acquisition

PrevTech Innovations acquires Agrivolt to Enforce its Leadership in Electrical Network Safety for the Agricultural Sector

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PrevTech Innovations and Agrivolt have joined forces, introducing an unprecedented offering to the agricultural sector. This acquisition unites their complementary strengths in electrical network safety monitoring and stray voltage control. Together, these two established companies are dedicated to prevention, innovation, and providing solutions and expertise to meet customer needs.

PrevTech Innovations: The leader in Electrical Safety and Prevention
PrevTech is the leader in providing advice-based prevention and power safety solutions. Its dedicated team of experts leverages cutting-edge technology and deep understanding of the industry to help businesses identify and mitigate electrical risks effectively and proactively. The company assists business operators in identifying and mitigating electrical and thermal issues that could evolve into much larger problems. Recognized by leading insurance carriers, PrevTech’s mission is to reduce the risk of electrical fires while providing peace of mind to their clients.

Agrivolt: Experts in Stray Voltage Control for Animal Well-Being
Agrivolt is the established leader and provider of choice in the field of stray voltage detection, control, and mitigation, having served the agricultural market for over 30 years. Their expertise is supported by more than 2,000 customers across North America.  Agrivolt offers a comprehensive range of technologies and certified products designed to detect and neutralize stray voltage, which can be a crucial factor in providing a stress free environment for livestock. Animal welfare and herd productivity are at the heart of Agrivolt’s mission.

A Partnership Rooted in Comprehensive Solutions
Uniting PrevTech Innovations and Agrivolt will provide an unparalleled opportunity in today’s protein industry. Combining PrevTech’s advanced monitoring and risk prevention approach with Agrivolt’s specialized solutions for managing stray voltage, these two companies are poised to deliver comprehensive and integrated solutions for electrical network safety and animal welfare.

“Modern farms use a variety of advanced equipment to maximize productivity, resulting in a significant increase in power consumption. The integration of Agrivolt’s cutting-edge products and unique expertise with PrevTech’s proactive approach enables us to provide a complete solution for the safety and integrity of our customers’ electrical network. By raising awareness of the importance of a safe electrical network on farms, we improve their prevention strategy, increase their resilience to the risk of fire and ensure an electrically stress-free environment for animals”, said Pierre-André Meunier, president and founder of PrevTech innovations, who will also take on the role of president of Agrivolt.

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Acquisition

Digital Solutions Company Marlabs Acquires Onebridge

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Strengthens AI and data analytics capabilities in life sciences and healthcare

Marlabs LLC., a digital solutions company, announced that it has acquired Indianapolis-based Onebridge to accelerate its growth in AI and data analytics space.

Thomas Collins, CEO Marlabs, is all smiles at the successful acquisition of Onebridge, an Indianapolis-based AI and data analytics company

“Marlabs is thrilled to welcome the Onebridge team into the Marlabs family and is excited about the potential the company brings in the AI and data analytics space. Our businesses are highly complementary, each with a rich technological services heritage and a strong focus on life sciences and healthcare. This union will enable our clients to solve their most complex data challenges through a design-first consulting mindset. Onebridge’s proprietary Modern Analytics Platform (MAP) and Comprehensive MAP Assessment (COMPASS) frameworks are genuinely groundbreaking and will contribute significantly to accelerating decision intelligence for clients in their transformation initiatives. These are truly exciting times for us,” said Thomas Collins, CEO, Marlabs LLC.

The acquisition is a significant milestone in Marlabs’ journey toward accelerating its data analytics consulting and execution expertise. Onebridge presents a wealth of specialized expertise in data analytics and AI, with two decades of experience, particularly focusing on sectors such as life sciences, healthcare, and government.

Paul Rothwell, CEO Onebridge, added, “As an Indy-born company with a passion for data analytics and AI, we at Onebridge are thrilled to join Marlabs. This partnership is more than growth; it’s a reflection of shared values and culture. It’s a credit to our team’s dedication, proving that a Midwestern tech firm can make a global splash. We’re eager to bring our expertise to a wider stage and innovate alongside a partner who mirrors our commitment to excellence. This venture with Marlabs is a pivotal step in enabling us to better serve our clients in the rapidly evolving world of data and AI, bringing innovative solutions to the forefront.”

Marlabs highlighted that the acquisition is part of its global expansion strategy. Onebridge was chosen because of its cultural alignment and strong focus on people, its track record of technology excellence in developing a strong data and AI consulting practice, and a strong presence in the life sciences and healthcare industries.

Marlabs has been on an accelerated path toward growth in recent years, having acquired the Brazilian software and data and analytics company Monitora Soluções Tecnológicas in May 2023. The acquisition of Onebridge is expected to enable the company—serving global clients across life sciences and healthcare—explore opportunities across other industry verticals such as manufacturing, retail, telco, media, and financial services. This expansion leverages our deep capabilities in data to deliver accelerated business outcomes.

About Marlabs:

Marlabs helps leading companies around the world make operations sleeker, keep customers closer, transform data into decisions, de-risk cyberspace, boost legacy systems, and capture novel opportunities and digital-led revenues. Marlabs has a global workforce that includes highly experienced technology, platform, and industry specialists from the world’s leading technical universities. The company provides digital-first strategy and advisory services, rapid solution incubation, and agile digital solution engineering. Marlabs is headquartered in New Jersey, with a presence in the US, UK, Canada, Germany, Brazil, and India.

About Onebridge :

Onebridge is an Indianapolis-based full-lifecycle data consulting firm serving some of the largest healthcare, life sciences, manufacturing, financial services, and government entities in the U.S. since 2005. Entirely employee-owned and -operated, Onebridge has been a top “Best Places to Work” in Indianapolis since 2015. The company is also the go-to partner for Strategy, Execution, Enablement (SEE) across Strategic Data Management, Integration and Architecture, Business Intelligence (BI) & Analytics, and Enterprise Application Development.

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This News has been Published in Partnership with PR Newswire

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