Company Reports Second-Highest Quarterly
Revenue Figure Ever by a Cannabis Company Reporting in Canadian
Dollars
CALGARY, AB, March 17, 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, filed its
financial results for the first fiscal quarter of 2022, ended
January 31, 2022, the highlights of
which are included in this news release. The consolidated financial
statements for the three months ended January 31, 2022 and the accompanying
management's discussion and analysis can be accessed by visiting
the Company's website at www.hightideinc.com, and its profile pages
on SEDAR at www.sedar.com, and EDGAR at www.sec.gov.
Fiscal First Quarter 2022 – Financial Highlights:
- Revenue increased to $72.2
million in the first quarter of 2022 compared to
$38.3 million in the same quarter
last year. Sequentially, revenue increased by 34% compared to the
fourth quarter of 2021.
- Gross profit increased by 56% to $23.0
million in the first quarter of 2022 compared to
$14.8 million in the same quarter
last year. Sequentially, gross profit increased by 31% compared to
the fourth quarter of 2021.
- Gross profit margin in the first quarter of 2022 was 32%
compared to 39% in the same quarter last year. Sequentially, gross
profit margin decreased by 1% compared to the fourth quarter of
2021.
- Adjusted EBITDA[1] for the first quarter
of 2022 was $3.0 million compared to
$4.6 million for the same quarter
last year. Sequentially, Adjusted EBITDA increased by 80% compared
to the fourth quarter of 2021.
- Geographically in the first quarter of 2022, $52.4 million of revenue was earned in
Canada, $17.4 million in the
United States and $2.3 million
internationally. Compared to the first quarter of 2021, revenue
increased by 53% in Canada, 346%
in the United States, and 1,016%
internationally. Sequentially, revenue earned increased by 22% in
Canada, 65% in the United States, and 455% internationally,
compared to the fourth quarter of 2021.
- Annual run rate revenue in the United
States is now $75 million, and
total annual run rate revenue outside of Canada is now $85
million.
- Segment-wise in the first quarter of 2022, $71.0 million of revenue was generated by Retail,
$1.2 million by Wholesale, and an
immaterial amount by Corporate.
- Cabanalytics data sales were $4.7
million in the first quarter of 2022 compared to
$1.5 million for the same quarter
last year. Sequentially, Cabanalytics data sales increased by 17%
compared to the fourth quarter of 2021.
- For locations operational throughout the first fiscal quarter
of 2022 and 2021, same-store sales decreased by 1%. Sequentially,
same-store sales increased by 13% from the fourth fiscal quarter of
2021 to the first fiscal quarter of 2022.
- In assessing performance at the end of the quarter compared to
prior to the implementation of the discount club model, on a
same-store sales basis, the Company's stores in the month of
January 2022 were on a run rate which
was 22% higher than revenue generated by these stores in
October 2021, despite the fact that
the overall size of the Canadian retail cannabis market was
reported to be 3% lower in January
2022 compared to October 2021.
Given the success of the discount club model, the Company
anticipates same-store sales to continue to increase in the second
fiscal quarter of 2022 and beyond.
- Cash on hand as of January 31,
2022 was $10.1 million.
________________________________
|
1 Adjusted
EBITDA is a non-International Financial Reporting Standards
("IFRS") financial measure.
|
"I'm proud of our team delivering such a strong quarter in a
challenging business environment. This past quarter's results,
showcasing 34% sequential revenue growth and 80% sequential
increase in Adjusted EBITDA, re-affirms our exponential, yet
sustained growth trajectory. We continue to execute on our business
plan quarter after quarter by strategically expanding our business
in Canada and internationally
through organic growth and accretive M&A across our diversified
ecosystem. Our forward-thinking approach makes us a leader amongst
our peer group in Canada, as we
keep introducing innovative retail concepts such as our discount
club model, while remaining agile and pivoting quickly when needed
due to the constantly evolving dynamics in the global cannabis
landscape," said Raj Grover, President and Chief Executive Officer
of High Tide. "With these results, we have now achieved the
second-highest quarterly revenue figure ever reported by a Canadian
cannabis company that reports in Canadian dollars, and with our
growth plans for the remainder of this year, we remain confident in
further meaningful increases to our revenue profile. As
Canada's largest cannabis
retailer, we continue to consolidate the bricks-and-mortar market
at attractive multiples while simultaneously growing our e-commerce
business portfolio. From same-store sales increases to the rapid
growth in our Cabana Club loyalty program, including generating
higher consolidated gross margins through our complimentary
ecosystem, we continue to raise the bar on our operational
execution. Our recent entry into Germany positions us well to take advantage of
significant growth opportunities in Europe's largest cannabis market. Our imminent
entry into British Columbia and
ongoing expansion in Ontario will
further propel our growth over the next few quarters. We
practically doubled our EBITDA this quarter and believe this growth
will continue to accelerate as we remain hyper focussed in
executing on our business plan," added Mr. Grover.
First Fiscal Quarter 2022 – Operational Highlights:
- Membership in the Cabana Club loyalty program increased to over
381,000 members as of January 31,
2022, from 245,000 at the launch of the Company's discount
club model.
- The Company opened 6 new Canna Cabana locations: 3 in
Saskatchewan, 2 in Alberta, and 1 in Ontario.
- On November 29, 2021, the Company
acquired an 80% interest in NuLeaf Naturals LLC, with an option to
acquire the remaining 20% within three years of closing.
- The Company announced a definitive agreement to acquire 100% of
Bud Room Inc., including Fastendr™ retail kiosk and smart locker
technology, on January 5, 2022.
Subsequent Events:
- Retail store expansion continued with 3 new Canna Cabana
locations: 2 in Alberta and 1 in
Ontario. The Company's total store
count as of today is 113 across Canada.
- Cabana Club membership increased to 451,419 members as of
today, representing an increase of 84.3% since the launch of the
discount club model on October 20,
2021.
- The Company closed the acquisition of Bud Room Inc. on
February 10, 2022, securing ownership
of Fastendr™ retail kiosk and smart locker technology.
- The Company celebrated the milestone of 420,000 Cabana Club
members by launching an exclusive car giveaway contest, the results
of which will be announced on April 20,
2022.
- The Company announced a definitive agreement to acquire
Crossroads Cannabis, which includes four established retail
cannabis stores in Ontario, on
March 3, 2022. The transaction is
expected to close in the coming weeks.
- The Company was recognized as one of the top 10 performing
diversified industries stocks in the 2022 TSX Venture 50™, which is
comprised of the top 50 companies from over 1,600 companies on the
TSX Venture Exchange.
- The Company's subsidiary, FAB CBD, launched a
Subscribe-and-Save discount program in the United States on March 7, 2022.
- The Company's subsidiary, Blessed CBD, launched online sales of
its premium hemp-derived CBD products in Germany on March 9,
2022.
- The Company launched cannabis delivery on demand through its
Canna Cabana locations in Ontario,
Manitoba, and Saskatchewan on February 22, 2022, and in Alberta on March 8,
2022.
- All five Canna Cabana locations in Ottawa have been equipped with Fastendr™
technology, which is helping to further differentiate the Company's
already-unique retail concept. The Company expects to have at least
15 additional Canna Cabana locations equipped with this exciting
technology by the end of April.
Selected financial information for the first quarter ended
January 31, 2022:
(Expressed in thousands of Canadian Dollars)
|
Three Months
Ended
January
31,
|
|
2022
$
|
2021
$
|
%
Change
|
Revenue
|
72,218
|
38,319
|
88%
|
Gross
profit
|
22,982
|
14,768
|
56%
|
Total operating
expenses
|
(29,129)
|
(16,813)
|
73%
|
Adjusted
EBITDA
|
2,955
|
4,601
|
(36%)
|
Loss from
operations
|
(6,147)
|
(2,045)
|
201%
|
Net loss
|
(7,352)
|
(16,845)
|
(56%)
|
Loss per share (basic
and diluted)
|
(0.14)
|
(0.62)
|
(77%)
|
The following is a reconciliation of Adjusted EBITDA to Net
Loss:
|
Three Months
Ended
January
31,
|
|
2022
|
2021
|
Net loss
|
(7,352)
|
(16,845)
|
Income
taxes
|
(1,064)
|
588
|
Accretion and
interest
|
1,551
|
2,702
|
Depreciation and
amortization
|
7,111
|
6,094
|
EBITDA(1)
|
246
|
(7,461)
|
Foreign
exchange
|
97
|
89
|
Transaction and
acquisition costs
|
909
|
1,581
|
Debt restructuring
gain
|
-
|
(1,145)
|
Revaluation of
derivative liability
|
(525)
|
10,484
|
Loss on settlement of
debenture
|
18
|
-
|
Loss on
extinguishment of debenture
|
-
|
515
|
Impairment
loss
|
89
|
-
|
Share-based
compensation
|
1,902
|
553
|
Revaluation of
marketable securities
|
219
|
(15)
|
Adjusted
EBITDA(1)
|
2,955
|
4,601
|
Note:
(1)
|
Earnings before
interest, taxes, depreciation, and amortization ("EBITDA") and
Adjusted EBITDA. These measures do not have a standardized meaning
prescribed by IFRS and are therefore unlikely to be comparable to
similar measures presented by other issuers. Non-IFRS measures
provide investors with a supplemental measure of the Company's
operating performance and therefore highlight trends in Company's
core business that may not otherwise be apparent when relying
solely on IFRS measures. Management uses non-IFRS measures in
measuring the financial performance of the Company.
|
Outlook:
High Tide continues to have a leading position in the Canadian
bricks-and-mortar cannabis market with 113 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. As previously stated, the Company reported revenue
of $72.2 million in the first fiscal
quarter of 2022, which is the second-highest quarterly revenue
figure ever reported by a Canadian cannabis company that reports in
Canadian dollars. Through organic growth and accretive M&A, the
Company expects to continue to increase its revenue through the
second fiscal quarter of 2022, and the remainder of the year. 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 challenges still
remain as a result of the ongoing COVID-19 pandemic, the Company is
confident and has demonstrated 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 has started implementing its
customized Fastendr™ technology, which it expects will both drive
greater efficiency, by lowering overhead and labour costs, and
improve customer experience. All five of the Company's stores in
Ottawa are now equipped with the
Fastendr™ technology, with expectations to have this exciting
technology added to another 15 stores by the end of April 2022. The Company expects to have all of
its Canna Cabana locations outfitted with this technology by the
end of the 2022 calendar year. The Company also anticipates that it
will be able to launch its exclusive lineup of Cabana Cannabis Co.
white label products in April 2022.
Canna Cabana launched its cannabis delivery on demand service in
all provinces where it operates and anticipates a future launch in
British Columbia upon its entry
into that province's market.
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 its revenue outside of
Canada 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 recently launched a
subscribe-and-save service in the United
States through its subsidiary, FAB CBD. Through its
United Kingdom-based subsidiary,
Blessed CBD, the Company entered the German market with the organic
sale of premium hemp-derived CBD products on its e-commerce
platform. In addition to growing its in-house brands, High Tide
intends to continue growing its online retail portfolio through
further strategic and accretive acquisitions.
High Tide Earnings Event Webcast:
The Company will host a webcast and conference call to discuss
their unaudited results and outlook at 5:30
PM (Eastern Time) today, Thursday,
March 17, 2022.
Webcast Link for High Tide Earnings Event:
https://events.q4inc.com/attendee/372657250
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.
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: 019155
*Participants will need to enter the participant access code
before being met by a live operator*
ABOUT HIGH TIDE
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 113 current locations spanning
Ontario, Alberta, Manitoba, and Saskatchewan. High Tide was featured in the
third annual Report on Business Magazine's ranking of Canada's Top Growing Companies in 2021 and was
named as one of the top 10 performing diversified industries stocks
in the 2022 TSX Venture 50™. 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's portfolio also
includes retail kiosk and smart locker technology – Fastendr™. 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, BlessedCBD.co.uk, and BlessedCBD.de, 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, its profile page on SEDAR at www.sedar.com,
and its profile page on 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 Crossroads Cannabis); 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; same-store sales continuing to
increase in the second quarter of 2022 and beyond; the Company
making meaningful increases to its revenue profile; the Company
growing in the German market; the results of the car giveaway
contest being announced on April 20,
2022; the Company deploying Fastendr™ technology across the
Company's retail stores in Ottawa
and other provinces, upon the timelines disclosed herein, resulting
in greater efficiencies, by lowering overhead and labour costs, and
improving the customer experience; the Company
continuing to increase its revenue through the second fiscal
quarter of 2022, and the remainder of the year; the Company
launching its exclusive lineup of Cabana Cannabis Co. white label
products on the timelines disclosed herein; the Company launching
delivery services in British
Columbia upon its entry into the province; 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 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, without limitation, Bud Room and
Crossroads Cannabis), 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 sales
from continuing operations for the financial year of the Company
ending October 31, 2022; Cabana Club
loyalty program membership continuing to increase; the Company
reaching its goal of leading global cannabis across all business
segments in which they operate; the anticipated sales from
continuing operations for the financial year of the Company ending
October 31, 2022; the Company hitting
its forecasted revenue and sales projections for the second quarter
of 2022; and the Company continuing to grow its online retail
portfolio through further strategic and accretive
acquisitions.
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 sales from continuing
operations for the financial year of the Company ending
October 31, 2022; the Company will
complete the acquisition of Crossroads Cannabis; the Company will
hit its forecasted revenue and sales projections for the second
quarter of 2022; Cabana Club loyalty program membership will
continue to increase; the Company will reach its goal of leading
global cannabis across all business segments in which they operate;
the Company will deploy Fastendr™ technology across the Company's
retail stores, upon the timelines disclosed herein, 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 disclosed herein; same-store sales will continue to
increase in the second quarter of 2022 and beyond; the Company will
make meaningful increases to its revenue profile; the Company will
grow in the German market; the Company will give away a car; the
Company will continue to increase its revenue through the second
fiscal quarter of 2022, and the remainder of the year; the Company
will launch delivery services in British
Columbia upon its entry into the province; 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 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 (including,
without limitation, the proposed acquisition of Crossroads
Cannabis) 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 acquire Crossroads
Cannabis; risk that the Company will not reach the anticipated
sales from continuing operations for the financial year of the
Company ending October 31, 2022; risk
that the Company will not hit its forecasted revenue and sales
projections for the second quarter of 2022; risk that Cabana Club
loyalty program membership will decrease and/or plateau; 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 deploy Fastendr™ technology across the
Company's retail stores or upon the timelines disclosed herein;
risk that the Company will be unable to launch its exclusive lineup
of Cabana Cannabis Co. white label products on the timelines
disclosed herein or at all; risk that same-store sales will not
increase, but decease and/or plateau; risk that the Company will be
unable to increase its revenue profile; risk that the Company will
be unable to increase its revenue through the second fiscal quarter
of 2022, and the remainder of the year, but that it will decease
and/or plateau; risk that the Company will be unable to grow in the
German market; risk that the Company will be unable to give away a
car; risk that the Company will be unable to expand into
British Columbia; risk that the
Company will not launch delivery services in British Columbia upon entry into the province;
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 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, and (iv) the Company's unaudited financial results for
the three months ended January 31,
2022. 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.