CALGARY, AB, Jan. 27, 2022 /CNW/ - High Tide Inc.
("High Tide" or the "Company") (NASDAQ: HITI) (TSXV:
HITI) (FSE: 2LYA), a leading retail-focused cannabis company with
bricks and mortar as well as global e-commerce assets, announces
its year end unaudited 2021 financial results on January 27, 2022. Due to personnel
challenges arising from the pandemic, the Company has not been able
to finalize its income tax provision to date. However, it
anticipates completing the work related to this matter and filing
its full set of audited consolidated financial statements and
management's discussion and analysis (the "Annual Financials") on
its website at www.hightideinc.com, and its profile pages on SEDAR
at www.sedar.com, and EDGAR at www.sec.gov on or before
January 31, 2022. The Company
does not expect any balances to be materially changed from those
outlined in this press release with the exception of: (i) the
income tax expense; (ii) net loss; (iii) and comprehensive
loss.
The Company will host a webcast and conference call to discuss
their unaudited results and outlook at 6:00
PM Eastern Time today, Thursday,
January 27, 2022.
2021 Fiscal Year – Financial Highlights1:
- Revenue increased by 118% to $181.1
million for the year ended October
31, 2021, and increased sequentially by 12% to $53.9 million in the fourth quarter of 2021. Note
that the quarter only includes 12 days of contribution from Blessed
CBD, and does not include any contribution from NuLeaf
Naturals. The Company is forecasting to generate revenue for the
first fiscal quarter of 2022 in excess of $70 million which, as of today, would be the
third-highest quarterly revenue figure achieved by a Canadian
cannabis company.
- Outside of Canada revenue
run-rate increased from approximately $11
million at the start of the 2021 fiscal year to
approximately $80 million today.
- Gross profit increased by 108% to $64.0
million for the year ended October
31, 2021, and increased sequentially by 5% to
$17.6 million in the fourth
quarter of 2021.
- Gross profit margin was 35% for the year ended October 31, 2021, and was 33% in the fourth
quarter of 2021. Note that the Company strategically launched a
discount club model for its retail stores on October 20, 2021, which resulted in a slight
decline in the gross profit margin for the fourth quarter of
2021.
- Adjusted EBITDA2 was a record $12.4 million for the year ended October 31, 2021, and was $1.6
million for the fourth quarter of 2021.
- Geographically for the year ended October 31, 2021, $150.5
million of revenue was earned in Canada (an increase of 120%), $29.7 million in the
United States (an increase of 109%), and $0.9 million internationally (an increase of
45%). Revenue increased sequentially to $42.9 million in Canada (an increase of 12%), $10.6 million in the
United States (an increase of 11%), and $0.4 million internationally (an increase of
247%) in the fourth quarter of 2021.
- Cabanalytics data sales from the entire retail ecosystem,
including bricks and mortar and e-commerce platforms, were
$12.2 million for the fiscal year
ended October 31, 2021, compared to
$2.2 million for the fiscal year
ended October 31, 2020. Sequentially,
Cabanalytics data sales increased to $4.2
million in the fourth fiscal quarter of 2021 compared to
$3.8 million in the third fiscal
quarter of 2021.
- For locations operational throughout the 2021 and 2020 fiscal
years, same-store sales decreased by 16%. Excluding the same-store
sales from the Ontario locations,
the same-store sales for the remaining locations decreased by 3%.
This metric captures the Company's early stores, particularly in
Ontario, which were destined to
have increased competition. Sequentially, same-store sales
increased by 7% from the third fiscal quarter to the fourth fiscal
quarter of 2021. Given the success of the discount club model, the
Company anticipates same-store sales to accelerate in the first
fiscal quarter of 2022 and beyond.
- Cash on hand as of October 31, 2021 totaled $14.0 million, compared to $7.5 million as of October
31, 2020.
___________________________
|
1 All
financial highlights outlined herein are provided on an unaudited
basis.
|
2 Adjusted
EBITDA is a non-IFRS financial measure.
|
"I'm very pleased to report that High Tide continued to raise
the bar in the Canadian and International cannabis industry
throughout last year by achieving exponential revenue growth,
record EBITDA generation, market share gains and adding top tier
entrepreneurial talent to our Company. This tremendous achievement
was made possible due to the tireless efforts of our entire team
despite the on-going headwinds we face due to the pandemic. 2021
was a very special year for our growth as we further extended and
strengthened our bricks and mortar footprint as well as our online
retail ecosystem as we rapidly grew our business across all three
of the segments we operate in: THC, CBD and consumption
accessories. Our continued growth in THC sales is especially
impressive given the increasingly competitive Canadian retail
landscape. With the launch of our innovative discount club model,
which is the first of its kind in North
America and is tailored to our Company's retail ecosystem,
we continue to rapidly gain Canadian retail market share. Given the
current growth trajectory we believe that our Cabana Club loyalty
program can eventually reach 750,000 members," said Raj Grover,
President and Chief Executive Officer of High Tide. "I am also
equally excited about our international growth trajectory as
through strategic and accretive acquisitions we grew our outside of
Canada run rate to over
$80 million from just $11 million at the start of fiscal 2021. We now
have 3 million international customers in our database which is up
drastically from 650,000 at the start of the year. We expect to
report over $70 million in sales for
Q1 2022 which would result in High Tide achieving the third-highest
quarterly revenue level amongst all Canadian cannabis companies. We
are achieving this massive growth while remaining EBITDA positive
for seven consecutive quarters. Our goal is to lead the global
cannabis industry across all business segments in which we operate,
and I remain excited for our growth prospects throughout 2022 and
beyond. I want to extend my sincere thanks and appreciation to all
our amazing team members for their hard work, our board of
directors for their continued guidance, our partners and vendors
for their continued support and our loyal customers and
shareholders that have supported us throughout 2021. Despite all
the success we experienced last year, I firmly believe the best is
yet to come for High Tide," added Mr. Grover.
Fiscal Fourth Quarter 2021 – Operational
Highlights3:
- The Company increased its database of international customers
to approximately 3 million today, from approximately 650,000 at the
beginning of the 2021 fiscal year. Membership in the Cabana Club
loyalty program increased to over 379,000 members today, from
65,000 members at the beginning of the 2021 fiscal year. Since the
launch of the Company's discount club model on October 20, 2021, the Cabana Club has grown by
55%.
- The Company announced its strategy to convert all of its
locations to an innovative discount club model, which is the first
of its kind in North America and
is tailored to the Company's retail ecosystem. This shift helped to
significantly increase memberships in its Cabana Club loyalty
program.
- The Company opened 15 new stores: 11 in
Ontario, 2 in Saskatchewan, 1 in Alberta, and 1 in Manitoba.
- The Company closed on a non-dilutive credit line, which
included access to $10 million
initially and a $15 million accordion
feature, subject to certain conditions, for a potential total of
$25 million4.
- The Company completed the acquisition of all the common shares
of 102105699 Saskatchewan Ltd., (operating as 102 Saskatchewan),
which included a portfolio of five locations in Regina, Saskatchewan, of which one was
operational and four were unbuilt, for $2.7
million.
- The Company completed the acquisition of 100% of DS
Distribution Inc., (operating as DankStop) for US$3.9 million.
- The Company announced the elimination of all its META
convertible debentures.
- The Globe and Mail's Report on Business
magazine recognized the Company as one of Canada's top growing companies for 2021, with
an audited growth rate of 733% over three years.
- The Company entered the UK market through the acquisition of an
80% interest in Enigmaa Ltd., operating as Blessed CBD, for GB£9.1
million, with an option to acquire the remaining 20% within three
years of closing.
Subsequent Events:
- The Company completed the acquisition of an 80% interest in
NuLeaf Naturals, LLC for US$31.2
million, with an option to acquire the remaining 20% within
three years of closing.
- The Company entered into a definitive agreement to acquire 100%
of Bud Room Inc. ("Bud Room") and all rights to the customized
Fastendr™ retail kiosk and smart locker technology and Bud Room's retail cannabis store located at 1910
St. Laurent Blvd in Ottawa,
Ontario for $3.6 million.
- The Company announced an at-the-market offering of up to
$40.0 million ("the ATM
Program") for strategic initiatives, which includes the
deployment of Fastendr™ technology across the Company's retail
stores.
- The Company opened 6 new stores: 3 in Saskatchewan, 2 in Ontario, and 1 in Alberta.
- The Company acquired an additional cannabis development permit
for a site in Saskatoon,
Saskatchewan, from the same entity as the
previously-acquired portfolio of retail locations in Regina, Saskatchewan, for $100,000.
- The Company closed its CBDcity website in order to focus on
integrating and expanding its own brands, which include NuLeaf
Naturals, FAB CBD, and Blessed CBD.
- The Company continues to experience gains in same-store sales
despite having dozens of its stores currently impacted by
COVID-19-related closures, reduced hours, and staff shortages.
___________________________
|
3 All
financial highlights outlined herein are provided on an unaudited
basis.
|
4 Largely due to implementing its
discount club model, and related changes to near-term EBITDA, as it
stands currently, the Company is not able to draw more than the $4
million dollars already obtained on the line and will be required
to repay the funds by May 1, 2022. The Company currently
anticipates that it will be in line with all related covenants to
resume withdrawing on the debt facility at the end of fiscal
Q4 2022 or potentially sooner.
|
Selected financial information for the fourth quarter and
year ended October 31, 2021:
(Expressed in thousands of Canadian Dollars)
|
Unaudited Three
Months
Ended October 31,
|
Unaudited Year
Ended
October
31,
|
|
2021
$
|
2020
$
|
%
Change
|
2021
$
|
2020
$
|
%
Change
|
Revenue
|
53,867
|
24,876
|
117%
|
181,123
|
83,265
|
118%
|
Gross Profit
|
17,563
|
8,725
|
101%
|
64,008
|
30,812
|
108%
|
Gross Profit
Margin
|
33%
|
35%
|
(2%)
|
35%
|
37%
|
(2%)
|
Total Operating
Expenses
|
(18,966)
|
(7,592)
|
150%
|
(79,234)
|
(30,016)
|
164%
|
Adjusted
EBITDA(a)
|
1,559
|
3,626
|
(57%)
|
12,421
|
7,974
|
56%
|
(a)
|
Adjusted EBITDA is a
non-International Financial Reporting Standards ("IFRS")
financial measure.
|
Outlook:
High Tide continues to have a leading position in the Canadian
bricks and mortar cannabis market with 109 locations across the
country. The Company's launch of an innovative discount club model
in its retail stores near the end of the fourth fiscal quarter of
2021 has delivered encouraging results to-date, with same-store
sales having continued to accelerate throughout the first fiscal
quarter of 2022. In large part because of this, High Tide expects
to report at least $70 million of
revenue in the first fiscal quarter of 2022, which would equate to
an annual run rate of over $280
million. By the end of the 2022 calendar year, the Company
intends to grow its Canadian retail store portfolio to at least 150
locations, with a primary focus on the Province of Ontario. The Company also plans to enter the
British Columbia market in the
near-term, and will continue growing strategically in other
Provinces where it currently operates. Although High Tide's bricks
and mortar retail operations continue to face significant
challenges as a result of the ongoing COVID-19 pandemic, the
Company is confident that it will be able to remain on a positive
growth trajectory.
Beyond growing its bricks and mortar retail footprint and
same-store sales, the Company also plans to introduce customized
Fastendr™ technology which it expects will both drive greater
efficiency, by lowering overhead and labour costs, and improve the
customer experience. Throughout 2022, High Tide will deploy the
customized Fastendr™ retail kiosk and smart locker technology at
its stores across Canada. The
Company also anticipates that it will be able to launch its
exclusive lineup of Cabana Cannabis Co. white label products by the
end of March, 2022. In Alberta,
where Canna Cabana is the Province's largest retail cannabis chain,
High Tide will launch delivery services once provincial regulations
permitting such operations come into effect on March 8, 2022.
The Company also has firm plans to build upon its existing
momentum in the international hemp-derived CBD and consumption
accessories e-commerce sectors, where it made six acquisitions
during the 2021 calendar year and grew outside of Canada revenue run rate by over seven times,
to approximately $80 million.
Throughout 2022, High Tide will continue to integrate and expand
CBD brands that it acquired in 2021, including NuLeaf Naturals, FAB
CBD, and Blessed CBD. The Company also plans to launch subscription
boxes through FAB CBD in the near-term, and will significantly
expand the reach of Blessed CBD over the coming months by entering
the German and US markets. In addition to growing its brands which
are already in-house, High Tide intends to continue growing its
online retail portfolio through further strategic and accretive
acquisitions.
Webcast and Conference Call:
The Company will host a webcast and conference call to discuss
their unaudited results and outlook at 6:00
PM (Eastern Time) today, Thursday,
January 27, 2022.
Webcast Link for High Tide Earnings Event:
https://events.q4inc.com/attendee/701958923
Participants may pre-register for the webcast by clicking on the
link above prior to the beginning of the live webcast. Three hours
after the live webcast, a replay of the webcast will be available
at the same link above.
Participants may access the audio of the High Tide earnings
event through either the new webcast format, or the conference call
line below. However, any participant who wishes to ask a question
must access the event via conference call, as the webcast does not
support live questions.
Dial-In Information:
Canada Dial-In Number (Toll-Free): +1 833 950 0062
Canada Dial-In Number (Local): +1 226 828 7575
United States Dial-In Number (Toll-Free): +1 844 200 6205
United States Dial-In Number (Local): +1 646 904 5544
Dial-In Number for All Other Locations: +1 929 526 1599
Participant Access Code: 037197
*Participants will need to enter the participant access code
before being met by a live operator*
ABOUT HIGH TIDE INC.
High Tide is a leading retail-focused cannabis company with
bricks and mortar as well as global e-commerce assets. The Company
is the largest Canadian retailer of recreational cannabis as
measured by revenue5, with 109 current locations
spanning Ontario, Alberta, Manitoba and Saskatchewan, and was featured in the third
annual Report on Business Magazine's ranking of Canada's Top Growing Companies in 2021. The
Company is also North America's
first and only cannabis discount club retailer, featuring Canna
Cabana, Meta Cannabis Co., and Meta Cannabis Supply Co. banners,
with additional locations under development across the country.
High Tide has been serving consumers for over a decade through its
established e-commerce platforms including Grasscity.com,
Smokecartel.com, Dailyhighclub.com, and Dankstop.com and more
recently in the hemp-derived CBD space through Nuleafnaturals.com,
FABCBD.com, and BlessedCBD.co.uk, as well as its wholesale
distribution division under Valiant Distribution, including the
licensed entertainment product manufacturer Famous Brandz. 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
For more information about High Tide Inc., please visit
www.hightideinc.com and its profile pages on SEDAR at
www.sedar.com and EDGAR at www.sec.gov.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities legislation. These
statements relate to future events or future performance. The use
of any of the words "could", "intend", "expect", "believe", "will",
"projected", "estimated" and similar expressions and statements
relating to matters that are not historical facts are intended to
identify forward-looking information and are based on the Company's
current belief or assumptions as to the outcome and timing of such
future events.
The forward-looking information and forward-looking statements
contained herein include, but are not limited to, statements
regarding: the Company's business objectives and milestones and the
anticipated timing of, and costs in connection with, the execution
or achievement of such objectives and milestones (including,
without limitation, the proposed acquisition of Bud Room); the Company's future growth prospects
and intentions to pursue one or more viable business opportunities;
the development of the Company's business and future activities
following the date hereof; expectations relating to market size and
anticipated growth in the jurisdictions within which the Company
may from time to time operate or contemplate future operations;
expectations with respect to economic, business, regulatory and/or
competitive factors related to the Company or the cannabis industry
generally; the impact of the COVID-19 pandemic on the Company's
current and future operations; the market for the Company's current
and proposed product offerings, as well as the Company's ability to
capture market share; the Company's strategic investments and
capital expenditures, and related benefits; the distribution
methods expected to be used by the Company to deliver its product
offerings; the competitive landscape within which the Company
operates and the Company's market share or reach; the performance
of the Company's business and the operations and activities of the
Company; the Company will add the number of additional cannabis
retail store locations the Company proposes to add to the Company's
business, with a primary focus on the Province of Ontario and near-term British Columbia market focus and remaining on
a positive growth trajectory; the Company completing the
development of its cannabis retail stores; the Company's ability to
generate cash flow from operations and from financing activities;
the Company's ability to obtain, maintain, and renew or extend,
applicable authorizations, including the timing and impact of the
receipt thereof; the realization of cost savings, synergies or
benefits from the Company's recent and proposed acquisitions
(including Bud Room), and the
Company's ability to successfully integrate the operations of any
business acquired within the Company's business; the Company's
intention to devote resources to the protection of its intellectual
property rights, including by seeking and obtaining registered
protections and developing and implementing standard operating
procedures; the anticipated annual sales from continuing operations
for the financial year of the Company ending October 31, 2022; the intention of the Company to
complete the ATM Program and any additional offering of securities
of the Company and the aggregate amount of the total proceeds that
the Company will receive pursuant to the ATM Program and/or any
future offering; the Company's expected use of the net proceeds
from the ATM Program and/or any future offering; the listing of
Common Shares offered in the ATM Program and/or any future
offering; the Company completing and filing their Annual Financials
on the timelines indicated herein; the Annual Financials' results
not materially changing from what has been disclosed herein, with
the exception of: (i) the income tax expense; (ii) net income and;
and (iii) comprehensive income; the Company hitting its forecasted
revenue and sales projections for the first quarter of 2022,
attaining the third-highest quarterly revenue level amongst all
Canadian cannabis companies and achieving an annual run rate of
over $280 million; the Cabana Club
loyalty program reaching 750,000 members; the Company reaching its
goal of leading global cannabis across all business segments in
which they operate; the Company acquiring Bud Room and deploying Fastendr™ technology
across the Company's retail stores, resulting in greater
efficiencies, by lowering overhead and labour costs, and improving
the customer experience; the Company launching its exclusive lineup
of Cabana Cannabis Co. white label products on the timelines
indicated herein; the Company launching delivery services in
Alberta once provincial
regulations permitting such operations come into effect; the
Company building upon its existing momentum in the international
hemp-derived CBD and consumption accessories e-commerce sectors;
the Company continuing to integrate and expand its CBD brands; the
Company launching subscription boxes through FABCBD and
significantly expanding the reach of Blessed CBD by entering the
German and US markets on the timelines disclosed herein; and the
Company continuing to grow its online retail portfolio through
further strategic and accretive acquisitions.
_____________________
|
5 On an
unaudited basis.
|
Forward-looking information in this press release are based on
certain assumptions and expected future events, namely: current and
future members of Management will abide by the Company's business
objectives and strategies from time to time established by the
Company; the Company will retain and supplement its board of
directors and management, or otherwise engage consultants and
advisors having knowledge of the industries (or segments thereof)
within which the Company may from time to time participate; the
Company will have sufficient working capital and the ability to
obtain the financing required in order to develop and continue its
business and operations; the Company will continue to attract,
develop, motivate and retain highly qualified and skilled
consultants and/or employees, as the case may be; no adverse
changes will be made to the regulatory framework governing
cannabis, taxes and all other applicable matters in the
jurisdictions in which the Company conducts business and any other
jurisdiction in which the Company may conduct business in the
future; the Company will be able to generate cash flow from
operations, including, where applicable, distribution and sale of
cannabis and cannabis products; the Company will be able to execute
on its business strategy as anticipated; the Company will be able
to meet the requirements necessary to obtain and/or maintain
authorizations required to conduct the business; general economic,
financial, market, regulatory, and political conditions, including
the impact of the COVID-19 pandemic, will not negatively affect the
Company or its business; the Company will be able to successfully
compete in the cannabis industry; cannabis prices will not decline
materially; the Company will be able to effectively manage
anticipated and unanticipated costs; the Company will be able to
maintain internal controls over financial reporting and disclosure,
and procedures in order to ensure compliance with applicable laws;
the Company will be able to conduct its operations in a safe,
efficient and effective manner; general market conditions will be
favourable with respect to the Company's future plans and goals;
the Company will reach the anticipated annual sales from continuing
operations for the financial year of the Company ending
October 31, 2022; the Company will
complete the ATM Program; the Company's will use of the net
proceeds from the ATM Program and/or any future offering as
outlined herein and in the Company's public disclosures; and the
Company will list the common shares offered in the ATM Program
and/or any future offering; the Company will complete the
acquisition of Bud Room; the Company
will complete and file their Annual Financials on the timelines
indicated herein; the Annual Financials' results will not
materially changing from what has been disclosed herein, with the
exception of: (i) the income tax expense; (ii) net income and; and
(iii) comprehensive income; the Company will hit its forecasted
revenue and sales projections for the first quarter of 2022, attain
the third-highest quarterly revenue level amongst all Canadian
cannabis companies and achieve an annual run rate of over
$280 million; the Cabana Club loyalty
program will reach 750,000 members; the Company will reach its goal
of leading global cannabis across all business segments in which
they operate; the Company will acquire Bud
Room and deploying Fastendr™ technology across the Company's
retail stores, resulting in greater efficiencies, by lowering
overhead and labour costs, and improve the customer experience; the
Company will launch its exclusive lineup of Cabana Cannabis Co.
white label products on the timelines indicated herein; the Company
will launch delivery services in Alberta once provincial regulations permitting
such operations come into effect; the Company will build upon its
existing momentum in the international hemp-derived CBD and
consumption accessories e-commerce sectors; the Company will
continue to integrate and expand its CBD brands; the Company will
launch subscription boxes through FABCBD and significantly expand
the reach of Blessed CBD by entering the German and US markets on
the timelines disclosed herein; the Company will continue to grow
its online retail portfolio through further strategic and accretive
acquisitions; the Company will add the additional cannabis retail
store locations to the Company's business and remain on a positive
growth trajectory; and the Company will complete the development of
its cannabis retail stores.
These statements involve known and unknown risks, uncertainties
and other factors, which may cause actual results, performance or
achievements to differ materially from those expressed or implied
by such statements, including but not limited to: the Company's
inability to attract and retain qualified members of management to
grow the Company's business and its operations; unanticipated
changes in economic and market conditions (including changes
resulting from the COVID-19 pandemic) or in applicable laws; the
impact of the publications of inaccurate or unfavourable research
by securities analysts or other third parties; the Company's
failure to complete future acquisitions or enter into strategic
business relationships; interruptions or shortages in the supply of
cannabis from time to time available to support the Company's
operations from time to time; unanticipated changes in the cannabis
industry in the jurisdictions within which the Company may from
time to time conduct its business and operations, including the
Company's inability to respond or adapt to such changes; the
Company's inability to secure or maintain favourable lease
arrangements or the required authorizations necessary to conduct
the business and operations and meet its targets; the Company's
inability to secure desirable retail cannabis store locations on
favourable terms; risks relating to projections of the Company's
operations; the Company's inability to effectively manage
unanticipated costs and expenses, including costs and expenses
associated with product recalls and judicial or administrative
proceedings against the Company; risk that the Company will not
complete the ATM Program; risk that the Company will be unable to
list the Common Shares offered in the ATM Program and/or any future
offering; the Company's failure to utilize the use of proceeds from
the ATM Program and/or any future offering as expected and/or
disclosed; risk that the Company will not acquire Bud Room; risk that the Company will not reach
the anticipated annual sales from continuing operations for the
financial year of the Company ending October
31, 2022; risk that the Company will not complete and file
their Annual Financials on the timelines indicated herein; risk
that the Annual Financials' results will materially changing from
what has been disclosed herein; risk that the Company will not hit
its forecasted revenue and sales projections for the first quarter
of 2022, be unable to attain the third-highest quarterly revenue
level amongst all Canadian cannabis companies and be unable to
achieve an annual run rate of over $280
million; risk that the Cabana Club loyalty program will not
reach 750,000 members; risk that the Company will not reach its
goal of leading global cannabis across all business segments in
which they operate; risk that the Company will be unable to acquire
Bud Room and deploy Fastendr™
technology across the Company's retail stores; risk that the
Company will be unable to launch its exclusive lineup of Cabana
Cannabis Co. white label products on the timelines indicated herein
or at all; risk that the Company will not launch delivery services
in Alberta; risk that the Company
will be unable to build upon its existing momentum in the
international hemp-derived CBD and consumption accessories
e-commerce sectors; risk that the Company will be unable to
continue to integrate and expand its CBD brands; risk that the
Company will be unable to launch subscription boxes through FABCBD
and significantly expand the reach of Blessed CBD; risk that the
Company will not enter into the German and US markets on the
timelines disclosed herein or at all; risk that the Company will be
unable to grow its online retail portfolio through further
strategic and accretive acquisitions; risk that the Company will be
unable to add additional cannabis retail store locations to the
Company's business and remain on a positive growth trajectory; and
risks that the Company will be unable to complete the development
of any or all of its cannabis retail stores.
Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those
anticipated.
Forward-looking statements contained in this press release are
expressly qualified by this cautionary statement and reflect the
Company's expectations as of the date hereof and are subject to
change thereafter. The Company undertakes no obligation to update
or revise any forward-looking statements, whether as a result of
new information, estimates or opinions, future events or results or
otherwise or to explain any material difference between subsequent
actual events and such forward-looking information, except as
required by applicable law.
CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL
INFORMATION
This press release may contain future oriented financial
information ("FOFI") within the meaning of Canadian securities
legislation, about prospective results of operations, financial
position or cash flows, based on assumptions about future economic
conditions and courses of action, which FOFI is not presented in
the format of a historical balance sheet, income statement or cash
flow statement. The FOFI has been prepared by management to provide
an outlook of the Company's activities and results and has been
prepared based on a number of assumptions including the assumptions
discussed under the heading above entitled "Cautionary Note
Regarding Forward-Looking Statements" and assumptions with respect
to the costs and expenditures to be incurred by the Company,
capital expenditures and operating costs, taxation rates for the
Company and general and administrative expenses. Management does
not have, or may not have had at the relevant date, firm
commitments for all of the costs, expenditures, prices or other
financial assumptions which may have been used to prepare the FOFI
or assurance that such operating results will be achieved and,
accordingly, the complete financial effects of all of those costs,
expenditures, prices and operating results are not, or may not have
been at the relevant date of the FOFI, objectively
determinable.
Importantly, the FOFI contained in this press release are, or
may be, based upon certain additional assumptions that management
believes to be reasonable based on the information currently
available to management, including, but not limited to, assumptions
about: (i) the future pricing for the Company's products, (ii) the
future market demand and trends within the jurisdictions in which
the Company may from time to time conduct the Company's business,
(iii) the Company's ongoing inventory levels, and operating cost
estimates, (iv) the Company's net proceeds from the ATM Program,
(v) the Company's unaudited financial results for the year ended
October 31, 2021, and (vi) the Annual
Financials' results not materially changing from what has been
disclosed herein, except as outlined herein. The FOFI or financial
outlook contained in this press release do not purport to present
the Company's financial condition in accordance with IFRS as issued
by the International Accounting Standards Board, and there can be
no assurance that the assumptions made in preparing the FOFI will
prove accurate. The actual results of operations of the Company and
the resulting financial results will likely vary from the amounts
set forth in the analysis presented in any such document, and such
variation may be material (including due to the occurrence of
unforeseen events occurring subsequent to the preparation of the
FOFI). The Company and management believe that the FOFI has been
prepared on a reasonable basis, reflecting management's best
estimates and judgments as at the applicable date. However, because
this information is highly subjective and subject to numerous risks
including the risks discussed under the heading above entitled
"Cautionary Note Regarding Forward-Looking Statements" and under
the heading "Risk Factors" in the Company's public disclosures,
FOFI or financial outlook within this press release should not be
relied on as necessarily indicative of future results.
Readers are cautioned not to place undue reliance on the FOFI,
or financial outlook contained in this press release. Except as
required by Canadian securities laws, the Company does not intend,
and does not assume any obligation, to update such FOFI.
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SOURCE High Tide Inc.