High Tide Archives - Green Market Report

Debra BorchardtSeptember 14, 2021
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High Tide Inc. (NASDAQ: HITI) reported its financial results for the third fiscal quarter of 2021 ending July 31, 2021, as revenue increased by 99% to $48.1 million versus $24.1 million in the same quarter last year. High Tide noted that the financial results included the acquisition of META Growth Corp., Smoke Cartel, Fab Nutrition, and DHC Supply LLC. The net loss for the quarter was $1.7 million versus last year’s net income of $3.8 million for the same time period.

Geographically, $38.4 million of revenue was earned in Canada and $9.6 million in the United States. Revenue from the U. S. increased to $9.6 million, versus $5.7 million for the second quarter of 2021, representing a 69% increase sequentially.

” Over the past year, we have been making strategic moves to successfully advance our rising portfolio of companies. We believe we can continue to build upon this momentum and capture a sizeable share of the cannabis market globally. I’m proud of our team’s efforts this quarter which resulted in revenue increasing once again by 99 percent over last year and 18 percent sequentially, despite market disruptions due to pandemic-related lockdowns and a very aggressive pricing strategy adopted by some value players. In Ontario, the largest cannabis market in Canada, due to pandemic-related restrictions, our stores were closed for in-person shopping for about half of the second quarter with only click-and-collect and delivery permitted. Despite these challenges we have been able to remain EBITDA positive by increasing our revenue at a pace consistent with previous quarters,” said Raj Grover, President and Chief Executive Officer of High Tide.

High Tide’s adjusted EBITDA in the quarter fell to $1.5 million versus $3.4 million for the same quarter last year. The company attributed the decrease in adjusted EBITDA to expenses related to the uplisting of the company’s stock to Nasdaq including directors’ and officers’ liability insurance premiums, Nasdaq listing fees, one-time professional fees, and additional human resources to support the integration of newly acquired companies. As a result of the uplisting to Nasdaq, the company became a non-venture issuer resulting in higher compliance requirements.

Grover went on to say, “This last quarter saw us continue our organic growth momentum by opening seven new retail locations across Canada with a total of 93 locations today. While the Canadian retail market remains competitive, our one-stop cannabis shop concept is very well received. This is evidenced by the fact that our Cabana Club membership grew by over 69,000 during the last quarter. Beyond our bricks and mortar organic growth, we doubled down on more accretive e-commerce acquisitions last quarter, in the consumption accessories and hemp-derived CBD space, with a particular focus on the U.S. market. With these acquisitions, our portfolio now includes three of the top five most popular online platforms for consumption accessories in the world. I remain excited about our e-commerce pipeline and look forward to sharing more good news on the M&A front in the very near future.”

Looking Ahead

High Tide said it expects to be at approximately 110 stores by the end of calendar 2021, despite some delays experienced in securing building permits. The company said it has made good progress on its application to enter the British Columbia market, and now expects that to occur by end of its 2021 fiscal year.

The increase in dispensaries in Canada was also mentioned. High Tide wrote, “While competition has increased given material growth in store counts in Ontario and Alberta and the concurrent rise of value players, the Company is focused on maintaining and growing its market share. We have begun leveraging our unique positioning within accessories to attract and retain more customers, and this approach has already yielded meaningful increases to our top line over the past few months. Just this week we announced two initiatives to expand our revenue streams.” The company also noted its plans to increase its business in the U.S.

Finally, High Tide said, “We are currently in discussions with multiple parties across a variety of end markets, with a particular focus on e-commerce within the growing ancillary and hemp-derived CBD markets. With a current annual run rate of revenues in the U.S. exceeding $50 million, we believe we are excellently positioned to lever our U.S. customer base to also sell cannabis once permissible by federal regulations and/or exchange policies – and the Company intends to continue growing its U.S. presence in the meantime.”

 


StaffJuly 13, 2021
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High Tide Inc. (TSXV: HITI) (Nasdaq: HITI) is buying a dispensary chain with six stores owned by 102105699 Saskatchewan Ltd. for C$2,900,000. High Tide will acquire a portfolio of six retail cannabis locations in Regina, Saskatchewan, out of which one is operational and five are in various stages of construction and development and are all expected to be operational by the end of 2021.

“I am excited that we are adding these six new locations which will bring High Tide’s total retail footprint in Saskatchewan to ten stores upon completion and solidify our position as a leading cannabis retailer in the province,” said Raj Grover, High Tide’s President & Chief Executive Officer. “Furthermore, within the City of Regina, there are currently only 13 operating retail cannabis stores of which one will be ours, with five more to come shortly. This transaction is especially beneficial to High Tide because retail cannabis margins in Saskatchewan are higher than the Canadian average, and new licenses are difficult to come by given various municipal zoning restrictions in Regina,” added Mr. Grover.

The payment will consist of C$2,150,000 in common shares of High Tide and C$750,000 in cash. The cash portion of the transaction will be funded entirely with cash on hand.

Acquisitions

High Tide has been busy acquiring companies. In June, the company said it was buying DHC Supply LLC operating as Daily High Club in a deal valued at $10 million. It was expected to close around the end of June 2021. The transaction consisted of  $6.75 million in common shares of High Tide and $3.25 million in cash. Daily High Club is an online retailer of glass water pipes, vaporizers, and other in-demand consumption accessories.

In March, High Tide completed the acquisition of Smoke Cartel Inc.  (OTCQB: SMKC) in a deal valued at $8 million. At the time, the company said it operated both the largest and second-largest e-commerce platforms for consumption accessories in the world with a combined total of 33 million site visits in 2020. As a result of the acquisition, High Tide said it has considerably expanded its footprint in the United States market and is very enthusiastic about its position to begin online cannabis sales should the United States move forward with federal legalization.

 


StaffJune 25, 2021
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High Tide Inc. (Nasdaq: HITI)  is buying DHC Supply LLC operating as Daily High Club in a deal valued at $10 million. It is expected to close around the end of June 2021. The transaction will consist of  $6.75 million in common shares of High Tide and $3.25 million in cash.

Daily High Club is an online retailer of glass water pipes, vaporizers, and other in-demand consumption accessories. Daily High Club provides a marketplace with a wide variety of high-quality products and subscription boxes. Daily High Club has an active social media presence with numerous influencer and celebrity endorsements including deals with Tommy Chong, Chanel West Coast, and more. Daily High Club boasts over 800,000 followers on Instagram and 75,000 followers on TikTok.

“In alignment with our intention to become a dominant player in the U.S. e-commerce marketplace through a combination of organic growth and accretive acquisitions, specifically targeting businesses with strong brand loyalty, I am thrilled to announce the acquisition of Daily High Club,” said Raj Grover, President and Chief Executive Officer of High Tide. “Daily High Club stood out to us because it is an increasingly popular consumption accessories online retailer, with a rapidly growing subscription box model which can easily be tailored to include cannabis products in the event of U.S. federal legalization. This subscription box model is complementary to our existing accessories e-commerce portfolio, and as such creates numerous opportunities for potential synergies. It’s my pleasure to welcome Harrison and the DHC team into our High Tide family,” added Mr. Grover.

High Tide also announced that Harrison Baum will be joining the High Tide team on closing as Director of Digital Marketing to oversee all social media initiatives for High Tide globally.

“I am extremely excited to be joining the High Tide team and see a huge opportunity to boost High Tide’s brands the same way we built our loyal following for Daily High Club,” said Harrison Baum, Founder and Chief Executive Officer of Daily High Club. “Daily High Club’s social media dominance, coupled with High Tide’s vast manufacturing capabilities and mature e-commerce platforms should yield meaningful synergies. I could not be more thrilled to be part of the High Tide family,” added Mr. Baum.

High Tide is the most profitable Canadian retailer of recreational cannabis as measured by Adjusted EBITDA, with 87 current locations spanning Ontario, Alberta, Manitoba, and Saskatchewan. High Tide’s retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide’s strategy as a parent company is to extend and strengthen its integrated value chain while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Tilray Inc. (TSX:TLRY) (Nasdaq:TLRY) and Aurora Cannabis Inc. (TSX:ACB) (Nasdaq:ACB).


StaffMarch 24, 2021
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High Tide Inc. (OTCQB: HITIF) has completed the acquisition of Smoke Cartel Inc.  (OTCQB: SMKC) in a deal valued at $8 million. The company said it now operates both the largest and second-largest e-commerce platforms for consumption accessories in the world with a combined total of 33 million site visits in 2020. As a result of the acquisition, High Tide said it has considerably expanded its footprint in the United States market and is very enthusiastic about its position to begin online cannabis sales should the United States move forward with federal legalization.

“The acquisition of Smoke Cartel is part of our strategy to aggressively pursue M&A targets that can be immediately accretive to shareholders. Now that the transaction has closed, High Tide will move quickly to take advantage of Smoke Cartel’s proprietary and licensable drop-shipping technology to enhance all our e-commerce businesses and further drive vertical integration across all accessory business lines, while continuing to make progress on our application to list on the Nasdaq,” said Raj Grover, President and Chief Executive Officer of High Tide. “This deal immediately gives High Tide access to Smoke Cartel’s 550,000 customers, driving more sales opportunities and increased profit margin,” added Mr. Grover.

Sean Geng, Founder, and CTO of Smoke Cartel, has joined the High Tide team as Chief Technology Officer to oversee all IT and e-commerce initiatives for High Tide globally. The company also recently promoted Aman Sood to the position of Chief Operating Officer of the Company, effective March 15th, 2021. Mr. Sood has been serving as Senior Director, IT & Retail Operations since transitioning to High Tide after the Company’s acquisition of META Growth.

A few days ago, High Tide announced that the Canna Cabana retail store located at 1702 Bow Valley Trail, in Canmore, Alberta, would begin selling recreational cannabis products for adult use today. This opening represents High Tide’s 77th branded retail location across Canada selling recreational cannabis products and consumption accessories. Located one hour west of Calgary and only 5 minutes from the Banff National Park, the new Canmore store is strategically located within walking distance of several ski resorts and other tourist attractions.


Kaitlin DomangueMarch 2, 2021
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It’s time for your Daily Hit of cannabis financial news for March 2nd, 2021. 

On the Site

Collecting and Storing Cannabis Pollen

Most growers these days are only interested in female plants, but if you want to cross different strains and breed new combinations, you’ll need the pollen. And in fact, few companies sell pollen so it’s actually much more practical to just collect your own. For indoor growers, collecting it is the only option, since nature’s elements are not present to spread the pollen for them.

Pro tip: If you are storing seeds for later pollen collection, best to occasionally pull one out and give it a germination test to make sure the little babies are still active and viable.

 

The Massachusetts Cannabis Industry is a Billion Dollar Marketplace

Cannabis business consulting firm Nucleus One recently released the findings of their February 2021 Massachusetts Adult-Use Marijuana Market Report. Nucleus-One tracks and analyzes data from the Cannabis Control Commission of Massachusetts. February’s report heralded good news for the Commonwealth’s cannabis industry after a short-lived decline in sales in 2020. Since the decline, December and January 2021 saw unprecedented sales, with over 98 active retailers in the state. This growth is due to higher sales in product categories other than flower shares, which hit an all-time low in December. 

 

CBN Market Targets Sleep

The demand for sleep aids and medications has seen a similar surge, and with it the debut of products containing Cannabinol (CBN), a minor cannabinoid with what some claim is a uniquely sedative effect.

Unlike CBD, CBN is not present in significant quantities in fresh marijuana, but when unheated marijuana ages or is exposed to air and light, the THC in it turns to CBN.

 

Circle K Ramps Up Cannabis Ownership

Alimentation Couche-Tard Inc. or ACT, the owners of Circle K have increased its equity stake in Canadian cannabis company Fire & Flower Holdings Corp.  (OTCQX: FFLWF). ACT announced that it plans to convert all of its approximately $28.5 million outstanding principal amount of 8.0% secured convertible debentures issued in April 2020 as well as the conversion of approximately $23.6 million principal amount of 8.0% unsecured convertible debentures issued to 2707031 Ontario Inc. Following the conversion, ACT will have converted a total of approximately $52 million principal amount of debt to equity and ACT will hold 19.9% of the issued and outstanding shares of Fire & Flower.

 

High Tide Crushes Fourth Quarter, 166% Increase in Revenue

Canadian cannabis retailer, High Tide Inc., (TSXV: HITI) (OTCQB: HITIF), announced their Q4 earnings yesterday for 2020. Despite the curveballs 2020 threw, High Tide landed on top, and reported a 118% increase in revenue bringing the total to $24.9 million for the fourth quarter. The revenue increase accounted for a 166% year-over-year growth, and brought the year’s total earnings to $83.3 million. 

In Other News

NeonMind Biosciences Inc. Files for Four Additional Provisional Patents

NeonMind Biosciences Inc. (CSE: NEON) (OTC:NMBDF) (FRA: 6UF) announced that they have filed four additional provisional patents on psilocybin preclinical data. NeonMind has a consumer products division focusing on medicinal mushroom infused products, as well as a pharmaceutical division focused on drug development of psychedelic compounds. 

The provisional patent features data derived from the company’s initial preclinical trial that began in November 2020. This trial examined the potential use of psilocybin as a treatment for weight loss. NeonMind’s proprietary preclinical data shows promise that both low and high dose psilocybin may reduce weight gain and that the reduction in weight gain can occur in a short period of time. 

“We are encouraged with the preliminary results obtained from our preclinical trial,” says NeonMind President & CEO Robert Tessarolo. “Through an expanded portfolio of patent applications, NeonMind is uniquely positioned to pursue exciting drug development opportunities in the enormously underserved weight management market. There have been so many solutions developed in the past that have disappointed; a new approach is desperately needed. We are actively building out our capabilities to execute the critical phases of drug development needed to support new drug applications to the FDA.” 

 

TILT Holdings Inc. Approved for Cultivation Expansion at Massachusetts Facility 

TILT Holdings Inc. (CSE: TILT) (OTCQX: TLLTF), announced its approval for expanding cultivation at their Massachusetts cultivation and manufacturing facility. The request was approved by Massachusetts Cannabis Control Commission and set for eight additional grow rooms at its subsidiary, Commonwealth Alternative Care, Inc. The new operations are set to begin later this month. 

“We are pleased to announce the regulatory approval of the second phase of the planned expansion of our 117,000 sq ft cultivation and manufacturing facility in Taunton, Massachusetts,” said Gary Santo, president of TILT. “We now have more than 56,000 sq. ft. of cultivation space with the ability to add a second grow tier to each of the eight new rooms, pending regulatory approval. Once planted, these additional rooms will fortify the supply of premium flower for our Taunton dispensary, and together with our award-winning kitchen and state-of-the art extraction and processing lab, will support the production and distribution of high-quality, consistent products for our brand partners. As we continue to solidify CAC’s presence in the state, we remain committed to working with the CCC to achieve final state licenses permitting medical dispensary operations at our Brockton and Cambridge locations, as well as adult-use operations at both our Brockton and Taunton locations.”

 

Canopy Growth Launches CBD Beverage Brand

Canopy Growth Corporation has launched a CBD beverage brand. The drink is already a top seller in the category after a successful Canadian launch. The brand is called Quatreau, and it contains 20 milligrams of U.S. grown hemp-derived CBD. Quaetreau comes in four refreshing flavors:

  • Quatreau CBD-infused Sparkling Water in Cucumber + Mint
  • Quatreau CBD-infused Sparkling Water in Passionfruit + Guava
  • Quatreau CBD-infused Sparkling Water in Ginger + Lime
  • Quatreau CBD-infused Sparkling Water in Blueberry + Acai

“We have proven our beverage strategy in Canada, where we are currently the market share leader in CBD-infused ready-to-drink beverages,” said Canopy Growth President and Chief Product Officer Rade Kovacevic. “Beverages are fueling growth in the CBD category and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero sugar option.”


Kaitlin DomangueMarch 2, 2021
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Canadian cannabis retailer, High Tide Inc., (TSXV: HITI) (OTCQB: HITIF), announced their Q4 earnings yesterday for 2020. Despite the curveballs 2020 threw, High Tide landed on top, and reported a 118% increase in revenue bringing the total to $24.9 million for the fourth quarter. The revenue increase accounted for a 166% year-over-year growth, and brought the year’s total earnings to $83.3 million. 

High Tide’s revenue by geographic location

  • $20.6 million of total company revenue was earned in Canada in Q4
  • $4.1 million of total revenue was earned in the United States in Q4
  • $0.2 million of total revenue was internationally in Q4

 

  • $68.4 million of total revenue was earned in Canada in fiscal year 2020
  • $14.3 million of total revenue was earned in the United States in fiscal year 2020
  • $0.6 million of total revenue was earned internationally in fiscal year 2020

High Tide’s gross profit increased by 112%

The company’s gross profit increased by 112% to reach $8.7 million in the fourth quarter of 2020, and 172% to $30.8 million for the year. The company’s CEO and President, Raj Grover, said 2020 was their best year yet. “Despite the global slump in retail sales associated with the pandemic, and thanks to the tireless efforts of our team, we closed the year with approximately $8 million in Adjusted EBITDA making 2020 the best year in High Tide’s history,” said Raj Grover, President and Chief Executive Officer. High Tide’s Adjusted EBITDA for the fourth quarter was $3.6 million, and the $8 million represents the fiscal year ended October 31st, 2020. 

High Tide’s cash on hand

The company reported $7.5 million cash on hand as of October 31st, 2020, and a significant cash balance increase to approximately $38 million as of today. 

Revenue segments

  • $22.6 million in total revenue was generated by retail in Q4
  • $2.2 million in total revenue was generated by wholesale in Q4 
  • An immaterial amount by corporate was generated in Q4

 

  • $75 million in total revenue was generated by retail in fiscal year 2020
  • $7.9 million in total revenue was generated by wholesale in fiscal year 2020
  • $0.4 million in total revenue was generated by corporate in fiscal year 2020 

These figures compare to $24 million, $6.69 million, and $0.6 million, respectively, for the previous year.

More thoughts from High Tide’s CEO 

“We continued to run our operations tightly, ending the year off with the record levels of revenue and Adjusted EBITDA.,” said Grover. “We are excited about our trajectory in the United States and continue to prioritize and look for opportunities in that market. Our integrated value chain which includes Cannabis Bricks & Mortar stores, e-commerce platforms for consumption accessories and hemp derived CBD products, along with manufacturing and distribution of licensed and proprietary consumption accessories, experienced sizable growth on all fronts. We plan to continue to further strengthen our chain through organic growth and strategic acquisitions creating even more value for our shareholders.  Since the end of the fiscal year, we have already nearly doubled our size in Canada with the closing of the META Growth acquisition. For the fiscal first quarter of 2021 we expect to report revenue in the range of $37 million to $38 million.”

Operational highlights

In addition to monetary achievements, High Tide made some operational moves last year to set the company up for success in 2021 and beyond. 

  • Canna Cabana (High Tides retailer) opens location in tourist destination Banff, Alberta in August
  • META shareholders overwhelmingly approve High Tide’s acquisition of META Growth Corp. (META. V) in October 2020
  • Over 50% of the company’s brick-and-mortar revenue came from Cabana Club members, emphasizing the brand’s value 

Additional Events

  • High Tides entered a loan agreement for $6.75 million ending on December 31st, 2024 of an undrawn balance on a $20 million credit facility, which was obtained through the acquisition of META
  • Approximately $29 million worth of company debt was converted into common shares after October 31st, 2020
  • Company common shares moved up to the TSX Venture Exchange
  • The company submitted an initial application to be listed on the NASDAQ 
  • High Tides closed on an unsubscribed bought deal equity financing, gross proceeds $23 million 
  • All branded locations have remained operational throughout the COVID-19 crisis, despite difficult issues facing Canada. 

Debra BorchardtNovember 23, 2020
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The number of cases of COVID-19 has spiked in the province of Ontario causing new lockdown orders. It was reported that more than 1,400 new coronavirus cases had been recorded in Ontario on Friday. Toronto has been the hot zone for the latest outbreak as the city broke its record for new infections on Tuesday and has reported several hundred new cases each day this week.

On Friday, November 20, 2020, Attorney General Doug Downey approved an emergency order placing the Toronto and Peel regions under a new lockdown to combat COVID-19. On Sunday, Ontario Regulation 654/20 was made allowing cannabis retail stores located in the lockdown regions to operate through e-commerce, curbside pickup, and home delivery services causing cannabis stores to once again pivot to online orders.

High Tide

High Tide Inc.  (OTCQB: HITIF) announced that it is fully compliant with the order issued by the Province of Ontario to place Toronto and Peel under lockdown. The company noted that in Toronto, the affected locations have been adjusted to offer only curbside pickup with delivery services to follow shortly thereafter for the announced 28-day period. High Tide currently operates 60 other retail cannabis stores across Canada and it does not have any locations in the Peel Region.

“Throughout the pandemic, we have remained agile in our operations to prioritize the needs of our customers across the country in a safe and compliant manner. Our curbside pickup services available at CannaCabana.com and MetaCannabis.com will continue to provide our Toronto-based customers with access to our full catalog of cannabis products throughout the 28-day lockdown,” said Raj Grover, President and Chief Executive Officer of High Tide. “As a diversified cannabis company with 66 retail locations in four provinces, a robust e-commerce portfolio and extensive operations in the US and abroad, we expect the lockdown to minimally impact our business. We will continue to optimize our business and are taking appropriate action to manage our operating costs accordingly,” added Mr. Grover.

Fire & Flower

Fire & Flower Holdings Corp.  (OTC: FFLWF)has said that its stores will once again offer free home delivery and curbside pick-up to safely and responsibly service its customers during the newly-mandated Toronto and Peel region lockdown in the Province of Ontario. “We applaud Attorney General Doug Downey for the practical solution of allowing provincially-licensed cannabis retailers the same e-commerce abilities of delivery and curbside pick-up that all other retailers have during this period of lockdown,” said Trevor Fencott, Chief Executive Officer, Fire & Flower. “This act allows us to safely provide service to our customers and continue to combat the burgeoning illegal market during these challenging times.”

“As the legal industry steps up for the second time and invests in safe delivery for our customers, we hope the Provincial government will recognize that the Ontario Cannabis Store’s monopoly on delivery is an unnecessary burden on public health, taxpayers, customers and economic growth in the Province” continued Fencott. “Lockdowns will eventually end, but the road to economic recovery for private business will be difficult and the large illegal market will continue unchallenged unless the government makes these changes permanent. Our customers expect e-commerce and delivery options from every other kind of retailer in the Province, and deserve to receive equitable treatment for licensed cannabis retailers.”


StaffSeptember 16, 2020
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High Tide Inc. (OTCQB: HITIF)  reported revenue for its third quarter of fiscal 2020 of $23.20 million an increase of 180% from $8.29 million for the same quarter last year. High Tide also delivered income from operations of $2.11 million versus a loss from operations of $4.04 million for the same period of 2019. The adjusted EBITDA for the quarter was $3.96 million compared to an adjusted EBITDA loss of $3.37 million for the same quarter last year.

“This exceptional combination of quarterly financial metrics, specifically the record levels and continued growth trends in revenue, gross profit margin, operating income, positive adjusted EBITDA and net income, reinforces our conviction that High Tide is one of the top-performing cannabis companies in Canada today. High Tide’s diversified and integrated businesses, including its best-in-class e-commerce platform, were strategically positioned to generate the Company’s strongest results since inception,” said Raj Grover, President, and Chief Executive Officer.

The company broke down its results as follows:

  • Segment-wise for the three months ended July 31, 2020, revenue was earned 89% ($20.54 million) by Retail, 11% ($2.63 million) by Wholesale, and an immaterial percentage ($0.04 million) by Corporate, which compares to 80% ($6.64 million), 17% ($1.42 million) and 3% ($0.23 million), respectively, for the same period of 2019.
  • Geographically for the three months ended July 31, 2020, revenue was earned 75% ($17.41 million) in Canada, 23% ($5.32 million) in the United States, and 2% ($0.48 million) internationally, which compares to 79% ($6.51 million), 20% ($1.63 million) and 1% ($0.15 million), respectively, for the same quarter last year.

Store Update

Despite the COVID-19 pandemic, existing Canna Cabana and KushBar locations remained operational. The company opened four new Canna Cabana retail locations in OntarioNiagara FallsToronto – Parliament, Burlington, and Toronto – Bayview, bringing the current total to 7 branded stores in the province. The company opened a KushBar store in Medicine Hat, Alberta. It also opened a Canna Cabana store in the year-around tourist destination of Banff, Alberta.

The portfolio includes a total of 37 branded retail cannabis locations in OntarioAlberta, and Saskatchewan. Currently, there are approximately 57,000 members of the Cabana Club, which has resulted in over 50% of the Company’s average daily retail cannabis transactions being conducted by Club members.

Looking Ahead

High Tide said it believes that by achieving positive cash flow from operations, the restructuring of $10.8 million of debt into an interest-free debenture due in 2025 and the pending acquisition of META Growth has strongly positioned it to execute on its strategic growth objectives for the remainder of fiscal 2020 and beyond. The company said it is well funded and operationally prepared to further its expansion in Ontario, as Canada’s largest and most underserved market.  Key industry investors in High Tide include Aphria Inc. (TSX: APHA) (NYSE: APHA) and Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB).


Debra BorchardtJune 17, 2020
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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.

Canna Cabana

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.”

Looking Ahead

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.


Debra BorchardtApril 22, 2020
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High Tide Inc. (OTCQB:HITIF) reported announced approximately $789,000 in systemwide gross revenues from April 18-20, 2020 (“4/20 Weekend”), which is a 79% increase over the $441,000 recorded from April 19-21, 2019, despite the COVID-19 pandemic limiting the Company’s scope of bricks-and-mortar operations. This is certainly positive news as the company closed its stores due to COVID-19 for two weeks at the end of March and in early April.

As a share of total sales, High Tide’s 31 branded retail cannabis stores across Canada contributed 68%, while e-commerce accessory sales primarily generated on Grasscity.com comprised the remaining 32%. An approximate blended gross margin of 39% was generated over the 4/20 Weekend by the business-to-consumer aspects of the Company’s assets.

The brands include Canna Cabana Inc., KushBar Inc., Grasscity.com, Smoker’s Corner Ltd., RGR Canada Inc. and Famous Brandz Inc. High Tide’s strategy as a parent company is to extend and strengthen its integrated value chain while providing complete customer experience and maximizing shareholder value.

“Our achievement of these record 4/20 Weekend results is evidence of the strong retail ecosystem of cannabis products and accessories that we have been building in brick-and-mortar and online over the last year,” said Raj Grover, President, and Chief Executive Officer. “High Tide continues to develop and enhance its retail brands, leveraging our decade of experience in the industry to attract, connect and retain loyal customers throughout North America and worldwide,” added Mr. Grover. High Tide continues to monitor the COVID-19 situation closely, while respecting the orders and guidance of public health and other government officials, as it operates its retail and wholesale business segments both locally and abroad.

Shares Issued

High Tide also issued an aggregate of 1,966,666 common shares of High Tide to certain holders of unsecured convertible debentures of the Company, in satisfaction of the annual amount of interest due to the holders. Key industry investors in High Tide include Aphria Inc. (TSX:APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).


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