Final month, one in every of Canada’s largest hashish retailers, Excessive Tide, thrust its approach into the booming German medical hashish market by buying a majority stake in Remexian Pharma GmbH in a deal value over €27m.
On September 02, this deal closed, with Excessive Tide’s CEO Raj Grover calling one of many largest hashish M&As of 2025 a ‘transformational second’ for his firm, which now has a direct and vital foothold within the European hashish market.
Simply hours after the completion was introduced, stories emerged of a authorized warning (Abmahnung) levelled towards Remexian by Berlin-based competitor Vayamed GmbH, miring each the corporate and the transaction in controversy.
Nonetheless, the timing of this authorized problem and the piling in of quite a few main German hashish operators suggests different motivations could possibly be at play right here.
On X, Excessive Tide’s CEO Raj Grover acknowledged in a collection of posts: “These allegations surfaced simply days earlier than Excessive Tide closed a 51% acquisition of Remexian. It’s laborious to see this as a coincidence.
“The timing, coordinated letters and press campaigns from rivals counsel they’re afraid of how this transaction may influence their companies, quite than legit issues relating to regulatory breaches.”
Earlier than we discover these allegations, let’s take a step again…
Excessive Tide’s acquisition of Remexian
Excessive Tide closed the acquisition of a 51% fairness stake in Remexian earlier this month, with the preliminary buy value for almost all stake set at €27.2m
The cost is being made in three components: simply over two-fifths in Excessive Tide shares, practically a 3rd in money, and the rest as a mortgage from Remexian’s sellers, which Excessive Tide will repay by the top of 2029 with 7% annual curiosity. The corporate additionally has the choice to purchase the remaining 49% of Remexian at any level after two years, giving it the chance to take full management sooner or later.
Managed by Francesco Baganz and Stefan Adomeit, Remexian is licensed to import from 19 international locations, and reported annualised income of €70 million and adjusted EBITDA of €15 million for the six months ended March 2025.
The corporate has grown quickly in current months, changing into one of many largest distributors of hashish flower in Germany, promoting seven tonnes within the second quarter of 2025, equal to 16% of the 43 tonnes imported nationally in the course of the interval.
What has Excessive Tide stated?
“Excessive Tide’s acquisition of a majority stake in Remexian Pharma brings collectively one in every of Germany’s main distributors with Canada’s largest hashish retailer, strengthening provide for sufferers and pharmacies.
We’re conscious of current allegations raised by sure rivals. These claims have already been challenged in courtroom filings, and Remexian has obtained a binding endeavor from one competitor, Cansativa GmbH, to not repeat such assertions in public. Remexian’s merchandise are totally compliant with German regulation, rigorously examined, and approved beneath legitimate approvals issued by the Federal Institute for Medication and Medical Units (BfArM). No regulatory authority has raised any compliance issues.
As with all acquisitions, the Share Buy Settlement contains protections that protect Excessive Tide from potential legacy liabilities.
It isn’t shocking that challenges emerged shortly after Excessive Tide introduced the bulk acquisition, when Remexian’s sturdy fundamentals and aggressive valuation grew to become clear. Remexian’s profitability and market share stand in distinction to many friends who’ve commanded increased valuations regardless of decrease earnings, and we consider that dynamic helps clarify each the timing and tone of the current allegations.
Importantly, Remexian already owns one of many largest wholesale distribution routes to market in Germany and doesn’t depend on rivals to entry pharmacies, which additional underscores the aggressive pressures behind these claims.
Excessive Tide and Remexian stay targeted on serving sufferers, supporting pharmacies, and constructing one of many strongest provide chains in Germany’s medical hashish sector.”
- Excessive Tide’s Chief Communications and Public Affairs Officer, Omar Khan
Is there extra at play right here?
One trade insider informed Enterprise of Hashish that, given its sturdy financials and market attain, Remexian’s valuation was an indication of a ‘fireplace sale’.
Certainly, extremely particular indemnities (which relate to the following authorized problem) negotiated by the customer seem within the transaction paperwork, suggesting that Excessive Tide recognized clear regulatory dangers throughout due diligence.
In Part 12.1, the sellers agreed to indemnify Excessive Tide towards damages arising from the ‘use of AMRadV licences throughout a number of hashish cultivars, or advertising and marketing totally different strains beneath one pharmaceutical identify’.
An extra clause (Part 12.2) makes clear that indemnification applies even when Excessive Tide knew about these dangers earlier than signing.
Nonetheless, a second nameless supply recommended the timing of the authorized problem could level to a unique state of affairs.
Remexian’s valuation, which means roughly a €53.3 million fairness worth for 100% of the enterprise, is decrease than many within the German market had anticipated, threatening the upper headline valuations of firms with weaker profitability.
Excessive Tide’s acquisition, paying lower than 1x in gross sales and ~3.6× EBITDA for a worthwhile wholesaler with significant market share, implies notably decrease multiples than many hashish property have commanded traditionally.
This, in flip, anchors expectations downward for German distributors eyeing M&A offers because the market prepares for long-predicted consolidation.
Cansativa GmbH Spokesperson
“As Europe’s largest hashish distributor, we feature a excessive degree of duty and due to this fact keep a detailed and ongoing trade with all our companions to make sure compliance and a dependable affected person provide. For causes of confidentiality and business sensitivity, we don’t touch upon particular person enterprise relationships.”
Sanity Group Spokesperson
“Sanity Group and its subsidiary, Vayamed GmbH, are dedicated to upholding excessive regulatory requirements within the German medical hashish market.
As a part of our ongoing efforts to make sure a good and compliant market, we monitor trade practices to safeguard affected person security and defend market integrity. On this context Vayamed GmbH, by way of its authorized representatives, has raised issues about potential violations of Germany’s Medicines Act.
These issues have been primarily based on present regulatory necessities set by Germany’s Federal Institute for Medication and Medical Units (BfArM).
The timing of our actions was dictated solely by the supply of proof essential to substantiate our issues. Will probably be as much as the competent authorities and courts to evaluate and resolve on this matter. As this matter pertains to ongoing authorized proceedings, we’re unable to remark additional at this time limit.”
- Enterprise of Hashish has additionally contacted Remexian and Vayamed for remark, however has acquired no responses on the time of publication.
September 23, 2025
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September 23, 2025
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September 22, 2025
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The authorized problem
First reported by Canadian hashish information publication Stratcann, the authorized problem accuses Remexian of breaching Germany’s Medicines Act (AMG) by advertising and marketing totally different hashish cultivars beneath the identical authorisation numbers, allegedly bypassing necessities that every pressure requires a person approval.
Vayamed’s criticism, filed by worldwide regulation agency Hogan Lovells simply days earlier than the acquisition closed (August 26), highlights merchandise bought beneath the model Madrecan the place a number of distinct cultivars similar to Granddaddy OG, Marvel Punch, Mac Driver, and Shark Assault have been listed beneath a single registration quantity.
Whereas this could represent a breach of the laws, it’s extensively accepted that the rule is overly bureaucratic with appreciable overlap within the data of every software, which then takes months to be accredited, dropping firms’ income.
Provided that the authorized problem was submitted across the time Remexian’s valuation was made public, questions come up over when these firms knew in regards to the potential breaches, and why they selected to behave on them once they did.
In response to Stratcann, German distributor Cansativa has pulled Remexian’s merchandise from its pharmacy cabinets, and Sanity Group has despatched a letter on to Remexian questioning these alleged practices.
Grover stated Remexian holds legitimate product licences from BfArM and that these stay in power regardless of current modifications to licensing guidelines. He added that Remexian obtained a authorized opinion from Hen & Hen LLP confirming the corporate’s compliance, and pressured that no regulator has raised issues.
Grover criticised the general public circulation of warning letters and notices to pharmacies, calling them ‘slander’ beneath German unfair competitors regulation. Excessive Tide, he stated, is taking authorized motion to cease such techniques.
The submit Are Rival’s Challenges to Excessive Tide’s German Entry About Compliance Or Competitors? appeared first on Enterprise of Hashish.
