What is the implied valuation multiple for Remexian based on its €65 million revenue and the deal price?

Implied valuation multiple

The deal price disclosed for the majority‑stake acquisition is €200 million. With Remexian’s reported €65 million of revenue over the last 12 months, the price‑to‑sales (P/S) multiple implied by the transaction is:

[
\text{P/S multiple} = \frac{€200 \text{m}}{€65 \text{m}} \approx 3.1\times
]

Trading and market implications

A ~3.1× sales multiple places the transaction at the higher end of the valuation range for European‑focused medical‑cannabis operators, where peers typically trade at 2–3× sales. The premium reflects High Tide’s strategic intent to secure a dominant supply position in Germany—a market that is still nascent but expected to double in size over the next 3‑5 years as regulatory caps are lifted and physician‑prescribing expands. If the German market materialises as projected, the multiple could be justified by accelerated top‑line growth; however, any slowdown in import‑volume growth or tighter regulatory constraints would pressure the valuation and could trigger a correction in High Tide’s stock (HTID) if the acquisition’s upside is not realized.

Actionable insight

From a technical standpoint, HTID has been trading near its 50‑day moving average with modest upside momentum. Given the relatively elevated multiple, a prudent approach is to accumulate on pull‑backs (e.g., 5–10 % below current levels) while monitoring German market developments and quarterly updates on Remexian’s sales pipeline. A breach of the 200‑day moving average to the upside could signal market confidence in the growth thesis, whereas a sustained decline may warrant a defensive trim to protect against valuation compression.