CALGARY, AB, Feb. 2, 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 that it
has completed the process of filing its audited annual financial
statements and management discussion & analysis for the
financial years ended October 31,
2021 and 2020, and the CEO and CFO certificates, all as
required by National Instrument 51-102 and National Instrument
52-109 (collectively, the "Annual Financials"). The Annual
Financials are available on the Company's website at
www.hightideinc.com, its profile pages on SEDAR at www.sedar.com,
and EDGAR at www.sec.gov.
With the filing of these Annual Financials, along with the
Company's annual information form, as required by National
Instrument 51-102, the Company has now filed all the documents
which were late, bringing it back into good standing with
applicable securities commissions and stock exchanges, and avoiding
any regulatory actions, including the possible management cease
trade order outlined in the news release dated February 1, 2022, .
The Company is pleased to now be in a position to confirm the
financial results announced on January 27,
2022, on an audited basis, other than an adjustment to the
following selected financial information for the fourth quarter and
year ended October 31, 2021, which
now includes impairment losses within Total Operating Expenses:
Selected financial information for the fourth quarter and
year ended October 31, 2021:
(Expressed in thousands of Canadian Dollars)
|
Three Months
Ended
October
31
|
Year
Ended
October
31
|
|
2021
$
|
2020
$
|
%
Change
|
2021
$
|
2020
$
|
% Change
|
Revenue
|
53,867
|
24,876
|
117%
|
181,123
|
83,265
|
118%
|
Gross
Profit
|
17,538
|
8,725
|
101%
|
63,983
|
30,812
|
108%
|
Gross Profit Margin
(i)
|
33%
|
35%
|
(2%)
|
35%
|
37%
|
(2%)
|
Total Operating
Expenses
|
(22,332)
|
(8,050)
|
177%
|
(82,657)
|
(30,721)
|
169%
|
Adjusted EBITDA
(ii)
|
1,641
|
3,625
|
(55%)
|
12,503
|
7,974
|
57%
|
Net (Loss) Income
from Operations
|
(4,794)
|
675
|
NM
|
(18,674)
|
91
|
NM
|
Net loss
|
(4,176)
|
(1,323)
|
216%
|
(35,037)
|
(6,354)
|
451%
|
Loss per share
(Basic)
|
(0.09)
|
(0.46)
|
(80)%
|
(0.84)
|
(0.46)
|
83%
|
Loss per share
(Diluted)
|
(0.09)
|
(0.46)
|
(80)%
|
(0.84)
|
(0.46)
|
83%
|
|
|
(i)
|
Gross Profit Margin
is a non-IFRS financial measure. Gross Profit Margin is calculated
by dividing total Gross Profit by total Revenue.
|
(ii)
|
Adjusted Earnings
before interest, taxes, depreciation and amortization ("EBITDA") is
a not a recognized measure under IFRS, and accordingly, the
Company's use of such term may not be comparable to similarly
defined measures presented by other entities. A
reconciliation of the Adjusted EBITDA to Net (Loss) income is found
under "EBITDA and Adjusted EBITDA" in this MD&A.
|
"I would like to apologize to all of High Tide's shareholders
for the delay in completing the filing of our 2021 audited annual
financial statements, which confirmed the unaudited results that we
shared last week," said Raj Grover, President and Chief Executive
Officer of High Tide. "Although this delay occurred due to
personnel shortages related to the ongoing COVID-19 pandemic, I
have never been one to make excuses, and I will be taking steps to
ensure that systems are put in place to prevent this from occurring
in the future" added Mr. Grover.
The Company intends to file its Q1 2022 financial statement, for
the period ending January 31, 2022,
on or before the deadline of March 17,
2022, and as disclosed in the January
27, 2022 news release, the Company expects to report over
$70 million in sales which would
result in High Tide achieving the third-highest quarterly revenue
level amongst all Canadian cannabis companies.
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 revenue, 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; 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, 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 Company completing and
filing their first quarter of 2022 financials statements on the
timelines indicated herein; and 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.
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 and file their first quarter of 2022 financial statements
on the timelines indicated herein; and 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.
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
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 first quarter of 2022 financial statements
on the timelines indicated herein; and 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.
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.
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SOURCE High Tide Inc.