Canada's High Tide rethinks entry into Germany after CDU/CSU victory

The Canadian High Tide, one of Canada's largest cannabis companies, announced that it is putting the acquisition of a majority stake in Purecan GmbH, a German company specializing in medical cannabis.

First announced in January 2025, the transaction was valued at approximately 4.8 million euros. Following a due diligence period and in the wake of the German Conservative Party’s victory, High Tide has decided to reassess the structure of the transaction and is now considering other arrangements with Purecan.

Uncertainty Surrounding the Transaction

In its official statement, High Tide stated that he There was no guarantee until a new agreement is finalized. Despite this, the company remains determined to enter the German medical cannabis market, either through a revised agreement with Purecan or by exploring other business opportunities in the country.

Purecan, based in Frankfurt, holds a European wholesale and import license, as well as a warehousing and logistics infrastructure and a telemedicine platform. These assets would have enabled High Tide to establish a strong foothold in the German market.

High Tide's decision comes at a time of uncertainty for the’German cannabis industry. The country legalized cannabis in March 2024, the law taking effect in two phases. The first phase, introduced in April 2024, authorizes the personal cultivation and possession, while Cultural clubs have become legal at July.

The second phase, intended to establish a model structured sale of medical cannabis, was delayed due to developments in domestic politics.

The the recent election of Conservative leader Friedrich Merz, the February 23, 2025, raises some concerns about the future of the cannabis reform in Germany. Mr. Merz's party has already expressed its opposition to legalization and hinted that he might reconsider existing laws.

Canada's Role in the German Cannabis Market

Germany is currently one of the largest importers of medical cannabis worldwide, a large portion of these imports from Canada.

Companies such as Tilray/Aphria and Aurora are already operating two of the three cannabis production facilities medical devices approved in the country. Potential regulatory changes in Germany could therefore have significant consequences for the Canadian cannabis exporters, which offset domestic overproduction with a dynamic foreign market.

High Tide operates Canna Cabana, which is among the Canada's largest cannabis retail chains, with nearly 200 stores in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.