Class VI Partners is pleased to announce the acquisition of NuLeaf Naturals, LLC (“NuLeaf”, or the “Company”) by High Tide, Inc. (“High Tide”) NASDAQ: HITI. Class VI served as the exclusive financial advisor to NuLeaf. “We were thrilled to work with the impressive ownership group at NuLeaf to help them achieve their dreams by finding a partner who valued their best-in-class manufacturing and brand development in the CBD space. With market-leading profitability and rapid growth recognized by back-to-back Inc. 5000 fastest growing private companies awards, NuLeaf has an incredible story. We could not be more excited for the next chapter and their continued success with High Tide.” said Zack Gibson, Executive Vice President for Class VI.
Founded in 2014 with its headquarters in Denver, Colorado, NuLeaf (https://nuleafnaturals.com/) is a market leader focused on the production and distribution of premium cannabinoid wellness products. It has received over 25,000 verified 5-star customer reviews through its e-commerce platform. NuLeaf can produce 60,000 plant-based softgels per hour and is one of only a few manufacturers in the United States that can produce a vegan softgel. With a heightened consumer interest in health focused and sustainable products, plant-based offerings are primed for growth.
NuLeaf has a strong distribution reach in the natural products channel and recently secured an expansion with Sprouts Farmers Market from 33 retail locations to an additional 235 stores. The Company has quickly grown to become one of the most popular brands for premium cannabinoid wellness products across the U.S., with its product portfolio including Multicannabinoid™ tinctures, softgels, and topicals.
Bo Shirley, Co-founder, commented, “Selling your business is a major decision for an entrepreneur and it is essential you have an investment banking partner you can trust. Our journey through this process was far from ordinary and Class VI rose to the challenge with the highest levels of professionalism. The team at Class VI worked around the clock to ensure that our best interests were met and we are incredibly grateful for their expertise as we navigated this transaction.”
The Company’s partnership with High Tide will further enable NuLeaf’s organic value-creation initiatives and expand its presence into new end-markets and verticals to support the next phase of its growth. The current management team, led by Co-founders Jaden Barnes and Bo Shirley, and Ian Kelly, CEO, will continue to lead the operations of the business and will be meaningful shareholders in High Tide.
“We are excited to partner with Raj and the High Tide team to deliver the highest quality cannabinoid products in the world,” said Bo Shirley, Co-founder of NuLeaf Naturals. “Utilizing the latest in cannabinoid research, we continue to drive innovation and growth by launching unprecedented products that revolutionize the market. High Tide is a global leader in cannabis and together we look forward to expanding our market share and building the future of this industry.”
“With this announcement, we have doubled down on our efforts to become a global market leader with respect to hemp-derived CBD production and e-commerce sales. Our strategy is backed by numerous studies which predict that the global CBD market is set to grow exponentially over the coming years, with Fortune Business Insights projecting that it will reach US$56 billion by 2028, equating to a compound annual growth rate of 47%. High Tide is growing across all three categories within the cannabis ecosystem, including THC, CBD, and accessories. With the purchase of NuLeaf, we are now further vertically-integrated in our CBD business, just like we have been with regard to consumption accessories. As international markets open up and as export regulations evolve, NuLeaf’s cGMP-certified facility positions us to take advantage of the global CBD business opportunity,” said Raj Grover, President and CEO of High Tide. “Additionally, NuLeaf has developed customized manufacturing technology for vegan softgels, establishing them as one of very few manufacturers in the U.S. with this capability. Their portfolio also includes other innovative products including their Multicannabinoid™ oils and softgels. This transaction will provide us with meaningful cross-selling synergies and margin enhancement opportunities for FAB and Blessed CBD. Bo, Jaden, and the entire NuLeaf team have 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,” added Mr. Grover.
The Company will continue to operate under the NuLeaf Naturals name, providing industry leading products out of its location in Denver, CO.
The transaction closed on November 29, 2021. Squire Patton Boggs LLP served as legal counsel to NuLeaf, KPMG LLP conducted financial due diligence on behalf of High Tide, and Garfinkle Biderman LLP and Sichenzia Ross Ference LLP served as legal counsel to High Tide in connection with the Transaction.
For more information about the transaction, please contact Zack Gibson at (303) 243-5623 or zgibson@classvipartners.com.
Class VI provides middle-market investment banking services, including mergers and acquisitions advisory, corporate advisory, business valuation, and private capital raising services through its affiliate, Class VI Securities, LLC and Member FINRA. Class VI is also affiliated with and offers wealth management services through Class VI Family Office, LLC, a Registered Investment Advisor with the Securities & Exchange Commission.