This news release constitutes a "designated news release" for
the purposes of the Company's prospectus supplement dated
December 3, 2021 to its short form
base shelf prospectus dated April 22,
2021.
CALGARY,
AB, May 20, 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, announced
today that its Cabana Club loyalty program has surpassed the
milestone of 515,000 members. This figure represents 110% growth
from the 245,000 members the Cabana Club had when the Company
launched its innovative cannabis discount club model less than
seven months ago.
OPENING OF CANNA CABANA STORE IN
KITCHENER, ONTARIO
The Company also announced that its Canna Cabana retail cannabis
store located at 1375 Weber Street East in Kitchener, Ontario, has begun selling
recreational cannabis products for adult use. This opening
represents High Tide's 121st branded retail location across
Canada, and 39th in Ontario, selling recreational cannabis
products and consumption accessories. This store further grows High
Tide's footprint in the Kitchener-Waterloo Region, which is
Ontario's fifth-largest
metropolitan area with a population of over 575,000, and is home to
multiple large post-secondary institutions including Wilfred
Laurier University, the University of
Waterloo, and Conestoga College. The store is located in a
retail plaza, adjacent to Ontario Highway 8, that is anchored by a
major national grocery chain and discount retailers.
"I know that the last several months have been incredibly
difficult in the capital markets, including our own equity
performance. As the largest shareholder of High Tide, I have also
been feeling the effects of these trying times. Despite these
challenges, I have yet to sell a single share, and continue to view
High Tide as an undervalued company - a sentiment which is shared
by the entire senior management and board of directors of the
Company. Our business continues to grow further from the highs we
set in Q1 2022 and our business fundamentals remain strong, as
evidenced by the exponential increase in our Cabana Club
membership, which now stands at over 515,000," said Raj Grover,
President and Chief Executive Officer of High Tide. "We also
continue to grow our presence in strategic markets, such as through
the opening of our new store in Kitchener, which builds on our success in the
Kitchener-Waterloo area, a region
with favourable cannabis demographics where we have strong brand
recognition and a foothold from our three established locations. As
a hub for tech talent and higher education, the Kitchener-Waterloo region's quick growth and
younger population, relative to the provincial average makes it an
ideal market for our company. High Tide's Canadian
bricks-and-mortar discount club model has continued to exceed
expectations in both revenue and customer volume, and throughout
the remainder of 2022, we plan to further grow our Canna Cabana
store network, with the goal of ending the year with 150
locations," added Mr. Grover.
CLOSING OF CROSSROADS CANNABIS
ACQUISITION LOCATED IN WOODSTOCK
The Company is also pleased to announce that further to its
press releases dated March 3, 2022
and April 27, 2022, the Company has
completed its acquisition (the "Acquisition") of the final
remaining operating cannabis store in Ontario (the "Store") operating under
the name Crossroads Cannabis ("Crossroads"), for
CAD$0.6 Million. The Store is located
in Woodstock, Ontario, in a
shopping centre anchored by a large national home improvement
store. The closing of the Acquisition, together with the
aforementioned opening of the new Canna Cabana store in
Kitchener, grows the number of
High Tide's branded retail cannabis stores to 122 across
Canada, and 40 in Ontario.
TRANSACTION DETAILS
The Acquisition was completed pursuant to the terms of an asset
purchase agreement dated March 2,
2022, as amended on April 22,
2022 (the "Acquisition Agreement"). High Tide
acquired the Store for 138,656 common shares of High Tide (each a
"High Tide Share") valued at CAD$634
Thousand (the "Share Consideration"), at a deemed
price of CAD$4.573 per High Tide
Share, being equal to the Discounted Market Price (as such term is
defined in the TSX Venture Exchange ("TSXV") policies) as of
the date the Acquisition was initially announced. The closing of
the Acquisition remains subject to final approval from the
TSXV.
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 non-franchised Canadian retailer of recreational
cannabis as measured by revenue, with 122 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 TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) 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; 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 and market conditions 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 and 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 and remain 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
Cabana Club loyalty program continuing to gain traction and growing
its membership; the Company reaching its goal of leading global
cannabis across all business segments in which they operate; the
Company continuing to integrate and expand its brands; the Company
receiving TSXV approval for the Acquisition; 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 Cabana Club loyalty program will continue to gain traction and
grow its membership; the Company will reach its goal of leading
global cannabis across all business segments in which they operate;
the Company will continue to integrate and expand its brands; the
Company will add the additional cannabis retail store locations to
the Company's business and remain on a positive growth trajectory;
the Company will receive TSXV approval to complete the Acquisition;
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 Cabana Club loyalty
program will not continue to grow its membership and stagnate; 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 continue to integrate and expand its
brands; 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; risk that the Company will
not receive approval from the TSXV to close the Acquisition; 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.
This news release does not constitute an offer to sell or
a solicitation of an offer to buy any of the securities in
the United States of America. The
securities have not been and will not be registered under the
United States Securities Act of 1933 (the "1933 Act") or any state
securities laws and may not be offered or sold within the United States or to U.S. Persons (as
defined in the 1933 Act) unless registered under the 1933 Act and
applicable state securities laws, or an exemption from such
registration is available.
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SOURCE High Tide Inc.