- The Company closes the year as the top revenue-generating
cannabis company in Canada
- The Company also announces the opening of its 150th Canna
Cabana location
CALGARY,
AB, Dec. 30, 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, is pleased
to reflect on its key milestones for 2022, a year that saw record
growth for the company. From becoming the top revenue-generating
cannabis company in Canada to
being recognized as one of Canada's "Top Growing Companies" for the
second year in a row by the Globe and Mail, to the growth of its
unique Cabana Club loyalty program to over 900,000 members, to
entering a new lucrative vertical in the
United States with the launch of cannabis seed sales, the
Company continuously demonstrated that it is committed to the
further diversification of its ecosystem while remaining a leader
in bringing innovation to the cannabis retail landscape.
High Tide's 2022 Highlights:
- Total revenue for the nine months ended July 31, 2022, increased to CAD$248.6 million from CAD$127.3 million for the nine months ended
July 31, 2021. Concurrent with the
release of the Company's fiscal third quarter results, it disclosed
that annualizing the revenue generated in the month of August 2022 results in a current revenue run rate
exceeding CAD$400 Million. High
Tide has become the top revenue-generating1
cannabis company in Canada,
according to New Cannabis Ventures2.
- Generated same-store sales increases of 46% during the three
months ended July 31, 2022, compared
to the same quarter in the prior year and 18% compared to the prior
quarter.
- Delivered rapid growth in its unique Cabana Club loyalty
program, which is the largest bricks-and-mortar cannabis loyalty
program in Canada with over
900,000 members.
- Launched Cabana Elite, the first-of-its-kind cannabis paid
membership loyalty program in Canada.
- Entered the British Columbia
market, with six stores operating at the end of 2022. The
Company also anticipates the organic opening of its location in
Kamloops, BC,
imminently.
- Added 45 new Canadian stores, both organically and through
accretive acquisitions, closing the year at 150 stores across
Ontario, Manitoba, Saskatchewan, Alberta and British
Columbia.
- Achieved a top 10 ranking in the diversified industries stocks
category by the TSX Venture 50 for 2022.
- Ranked 21st out of 430 in the Globe and Mail's annual ranking
of Canada's "Top Growing
Companies" with 1970% revenue growth over three years. This marks
the second year in a row the Company has earned a spot on this
prestigious list.
- Closed a $19 million senior
secured credit facility with connectFirst Credit Union Ltd., with
an initial 5-year term, at connectFirst's floor interest rate.
- Rolled out 175 proprietary Fastendr Kiosks across 120 Canna
Cabana stores.
- Launched its Cabana Cannabis Co. white-label offerings in the
Canadian provinces of Ontario,
Manitoba and Saskatchewan.
- Entered a new lucrative vertical in the United States with the launch of cannabis
seed sales through its subsidiaries GrassCity and Smoke
Cartel.
- Launched first-of-its-kind exclusive annual '420' prize package
car giveaway valued at over $42,000.
- Increased international customer database to over 3 million,
including approximately 2.4 million customers in the United States through its ancillary
cannabis e-commerce platforms.
- Grew its World Vision sponsorship support to 300 children
internationally after committing to sponsoring two additional
children for every new store that opens in Canada.
- Increased its total employment footprint from just over 900 to
over 1,400 during 2022 in order to manage growth.
COMPANY TO OPEN NEW STORE IN
ETOBICOKE, ONTARIO
The Company also announced today that its Canna Cabana retail
cannabis store located at 170 Queen Street North, Etobicoke, Ontario, will begin selling
recreational cannabis products and consumption accessories for
adult use tomorrow, December 31,
2022. This first Etobicoke
store is Canna Cabana's 150th in Canada and the 49th in Ontario. Anchored by two major discount
retailers, this store is located within a major commercial plaza in
the inner Toronto suburb of
Etobicoke, containing a national
arts and crafts retail chain. It is also a short drive away from
Sherway Gardens, a large mall in the Greater Toronto Area that brings in customers
from surrounding municipalities, like Mississauga, Canada's seventh largest city,
which do not permit bricks-and-mortar cannabis sales within their
boundaries.
"Once again, I would like to thank our loyal customers, team
members and our shareholders for their ongoing support as we
delivered yet another landmark year for High Tide, despite
geopolitical, supply chain and economic challenges worldwide. With
their support, we were able to execute our business plan, which saw
us emerge as the top revenue-generating cannabis company in
Canada. Our rapid
revenue growth and positive adjusted EBITDA continue to
expand as we leveraged the strengths of our diversified
cannabis ecosystem, and experienced
strong growth in our Cabana Club loyalty program, which now sits at
over 900,000 members. I am optimistic that this continued growth in
both revenue and customer loyalty will be recognized by the capital
markets as macro-level global challenges outside of our control
ease through 2023," said Raj Grover, President and Chief Executive
Officer of High Tide.
"Despite most cannabis companies facing fierce challenges across
the cannabis value chain, we have continued on our forward
trajectory, delivering on our goals which included opening 150
locations in 2022 through laser-focused execution. The results
we've yielded in Canada over the
last couple of years give me confidence that our team will continue
to execute and deliver in large and exciting markets like
the United States and Germany as relevant laws and regulations
materialize. I have said it before and want to re-iterate now that
our ambition is to become a top-five MSO with significant retail
operations beyond North America.
We continue to strengthen our business with every
passing year, and look forward to delivering yet
another year of solid growth and significant market share gains
heading into 2023," added Mr. Grover.
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 150 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)
accept 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
and store openings); 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 adding the number of additional cannabis
retail store locations the Company proposes to add to the Company's
business upon the timelines indicated herein, and the Company
remaining on a positive growth trajectory; the Company making
meaningful increases to its revenue profile; the Company completing
the development of its cannabis retail stores; 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; and the Company
continuing to grow its online retail portfolio through further
strategic and accretive acquisitions.
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. 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 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 annualized revenue and current revenue
run rate, which is all subject to the same assumptions, risk
factors, limitations, and qualifications as set out in the above
"Cautionary Note Regarding Forward-Looking Statements". FOFI is not
presented in the format of a historical balance sheet, income
statement or cash flow statement. FOFI does 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, 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 of the applicable date. However, because this
information is highly subjective and subject to numerous risks,
readers are cautioned not to place undue reliance on the FOFI as
necessarily indicative of future results. Except as required by
applicable law, the Company undertakes no obligation to update such
FOFI.
1
Ranking relates to companies reporting in CAD
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2 Based
on reporting by New Cannabis Ventures as of November 14, 2022. For
the New Cannabis Ventures' senior listing, segmented cannabis-only
sales must generate more than US$25 million per quarter (CAD$31
million) – for full details, see:
https://www.newcannabisventures.com/cannabis-company-revenue-ranking/
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SOURCE High Tide Inc.