- The global cannabis seeds market was valued at USD $1.3 billion in 2021 and is projected to reach
USD $6.5 billion by 2031 with an
expected CAGR of 18.4% from 2022-20231
- Over the last 12 months, GrassCity.com generated close to 24
million page views with 3.8 million users
- Over the last 12 months, GrassCity.com forums, which include a
significant number of users with an interest in seeds, has seen 6.2
million users on its platform with nearly 12 million page
views
- Over the last 12 months, SmokeCartel.com generated 42.6 million
page views with 6.5 million users
CALGARY,
AB, Dec. 13, 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 it has begun selling cannabis seeds in the United States, initially through its
wholly owned subsidiaries Grasscity and Smoke Cartel, which are the
two most popular e-commerce platforms for consumption accessories
in the world.2 The Company plans to expand
seed sales to additional online retail platforms within its
portfolio in 2023.3 This launch comes on
the heels of the American Drug Enforcement Agency's recent official
determination that cannabis seeds fall under the legal definition
of hemp and can therefore be sold openly in the United
States.
![High Tide Inc. December 13, 2022 (CNW Group/High Tide Inc.) High Tide Inc. December 13, 2022 (CNW Group/High Tide Inc.)](https://mma.prnewswire.com/media/1967236/High_Tide_Inc__High_Tide_Enters_New_Vertical_in_the_United_State.jpg)
"With our entry into this new and exciting complementary
vertical, we continue to extend and strengthen our integrated value
chain, providing our customers with a complete cannabis experience,
in addition to the opportunity to further enhance our consolidated
gross margin profile. This new business venture will greatly expand
our U.S. customer base, which already sits at 2.4 million through
our ancillary cannabis business lines, and sets us up well to take
advantage of federal legalization in the
United States when it comes. This further diversification
into the U.S. seeds market also strengthens our Canadian discount
club model, as this new vertical is expected to generate
significantly higher gross margins than our core brick-and
mortar-business, which will help us continue to offer unbeatable
prices to our Cabana Club members," said Raj Grover, President and
Chief Executive Officer of High Tide.
_________________________________
|
1 Source: Cannabis Seeds Market Size,
Share | Industry Forecast Till 2031
(alliedmarketresearch.com)
|
2 Based
on 2022 site traffic data from SEMRush
|
3 The
Company has secured a legal opinion from a leading US law firm, to
commence sales of cannabis seeds in the US
|
"GrassCity and Smoke Cartel, due to their top SEO rankings,
organically built over the last twenty-two and eight years,
respectively, generate some of the highest online traffic in the
consumption accessories space, which is why it makes sense for us
to leverage this strength as we launch this new vertical in
the United States. Innovation has
always been a cornerstone of High Tide's strategy, and today's
announcement is yet another example of how we will never stop
looking for ways to enhance shareholder value while differentiating
ourselves from the competition," added Mr. Grover.
GRANT OF RESTRICTED SHARE
UNITS
The Company also announced that its Board of Directors has
approved a grant of 106,635 restricted share units ("RSUs") to
directors of the Company pursuant to the Company's restricted share
unit plan. Each RSU entitles the holder to acquire one common share
of the Company upon vesting.
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 cannabis retail chain in Canada, with 142 current locations spanning
British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. The Company is also North America's first cannabis discount club
retailer, under the Canna Cabana banner, which is the
single-largest cannabis retail brand in Canada, with additional locations under
development across the country. High Tide's portfolio also includes
retail kiosks 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, BlessedCBD.de, and Amazon United
Kingdom, as well as its wholesale distribution division under
Valiant Distribution, including the licensed entertainment product
manufacturer Famous Brandz. High Tide was featured in the Report on
Business Magazine's ranking of Canada's Top Growing Companies in both 2021
and 2022 and was named as one of the top 10 performing diversified
industries stocks in the 2022 TSX Venture 50™. 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.
For more information about High Tide, please visit
www.hightideinc.com and its profile pages on SEDAR at www.sedar.com
and EDGAR at www.sec.gov.
Neither the TSX Venture Exchange 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.
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, proposed acquisitions);
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
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
making meaningful increases to its revenue profile; the expansion
of the Company's U.S. customer base; the federal legalization of
cannabis in the U.S. and the ability of the Company to succeed in
that market; and the Company building upon its existing momentum in
the international hemp-derived CBD and consumption accessories
e-commerce sectors.
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: risks surrounding the legality of delta-8 tetrahydrocannabinol
("Delta-8") derived from hemp; risks surrounding the
uncertainty and legality of Delta-8 and delta-9
tetrahydrocannabinol ("Delta-9") state to state; risk that
the United States Drug Enforcement Administration could consider
the Company's Delta-8 products an illegal controlled substance
under the Controlled Substances Act (the "CSA") or Federal
Analogue Act in the United States;
risk that that state or federal regulators or law enforcement could
take the position that the Delta-8 and Delta-9 products and/or
in-process hemp extract are/is a Schedule I controlled substance in
violation of the CSA and similar state laws; risk that the
Company's Delta-9 products could be considered by state law
enforcement and state regulators to be marijuana illegal under
state laws criminalizing the possession, distribution, trafficking
and sale of marijuana; risk that should the Company become subject
to enforcement action by federal or state agencies, the Company
could: (i) be forced to stop offering some or all of it Delta-8 and
Delta-9 products or stop all business operations, (ii) be subject
to other civil or criminal sanctions, (iii) be required to defend
against such enforcement and if unsuccessful could cause the
Company to cease its operations; and risk that enforcement or
regulatory action at the United
States federal and/or state level could adversely impact the
listings of the Common Shares on the TSXV and Nasdaq. A discussion
of some of the material risk factors applicable to High Tide can be
found in the "Non-Exhaustive List of Risk Factors" section in
Schedule A to the Company's current annual information form, as
such factors may be further updated from time to time in its
periodic filings, available at www.sedar.com and
www.sec.gov.
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 disclaims any 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.