High Tide Inc. (OTCQB: HITIF) reported its financial and operating results for the second quarter of fiscal 2020 ending April 30, 2020 with revenue increasing by 197%, to $19.57 million from $6.60 million for the same quarter last year. The company delivered a net loss of $5 million for the quarter versus a net loss of $3.3 million for the same time period in 2019. The company reported a loss per share of $0.02, which was flat from last year’s second quarter.
“The second fiscal quarter of 2020 marks a historic moment in High Tide’s history. I am fiercely proud of our team for delivering adjusted EBITDA well ahead of the Company’s peer group and positive cash flow from operations through their unwavering commitment to our core strategy, especially throughout the pandemic. A decade of experience with cannabis consumers has been the key ingredient to our substantial year-over-year increase in revenue and enhanced gross margin.” said Raj Grover, President, and Chief Executive Officer.
The company delivered an adjusted EBITDA for the quarter that increased by 156%, to $1.94 million from an Adjusted EBITDA loss of ($3.49 million) for the same quarter last year.
The company bought and integrated the branded Canna Cabana locations in Hamilton and Sudbury. The company has since opened four new Canna Cabana retail locations in Ontario: Niagara Falls, Toronto – Parliament, Burlington, and Toronto – Bayview Avenue, bringing the current total to 7 Ontario stores and achieving 9% provincial market share by location as of June 9, 2020.
Despite the challenging conditions of COVID-19 pandemic the company said that existing Canna Cabana locations have remained operational and efficient. High Tide said it has approximately 47,000 members in the Cabana Club, with 55% of our average daily transactions conducted by Club members.
Grover added, “We are grateful to the many customers, employees, shareholders, and other stakeholders who believed in High Tide’s vision and today share in our success. We remain focused on continuing to strengthen our balance sheet and delivering value by furthering our retail expansion across Ontario.”
High Tide said it remains focused on the fundamentals of profitable retail, while continuing to leverage cannabis and its related accessories through the company’s manufacturing and e-commerce portfolio. The company said it believes that the senior secured credit facility advanced by Windsor Capital, the proceeds from the sale of the common shares of Halo Labs, and achieving positive cash flow from operations has positioned High Tide to execute on its strategic growth objectives in 2020. The company is well-positioned and funded to further its expansion in Ontario, as Canada’s largest and most underserved market.