In a deal worth more than $31.2 million, Canadian-based High Tide, a cannabis retailer, CBD, and cannabis accessory company, will acquire 80% of Denver-based NuLeaf Naturals. NuLeaf Naturals has an 18-month option to sell the remainder to High Tide. High Tide is paying via shares and has a three-year call option for the remaining 20%. High Tide will pay cash if it chooses to acquire the rest of NuLeaf.

Through sales in retail stores and an e-commerce website, NuLeaf generated $19.4 million in revenue from its hemp-derived CBD and other cannabinoid products – soft gels, tinctures, and topicals. The bulk of their sales – $16.3 million – was from direct-to-consumer e-commerce.

Founded in 2014, NuLeaf has become a market leader in the production and distribution of CBD wellness products and is one of a few U.S. manufacturers that can produce a vegan soft gel.

President and Chief Executive Officer of High Tide, Raj Grover, said the purchase of NuLeaf expands the vertical integration of its CBD business. High Tide currently operates over 100 Canadian retail cannabis stores and owns numerous online cannabis accessory retailers. Previously this year, High Tide acquired United Kingdom-headquartered brand Blessed CBD and Milwaukee-based FabCBD. This most recent acquisition is a significant step towards establishing High Tide as a significant player in the global hemp-derived CBD product marketplace.

“This transaction will provide us with meaningful cross-selling synergies and margin enhancement opportunities for FAB and Blessed CBD,” said Grover. “The entire NuLeaf team has done an exceptional job in building NuLeaf into one of the most popular and leading CBD brands in the U.S., and I am very excited to welcome them into our growing High Tide family.”