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, Feb. 15, 2023 /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 the Company and Rahim
Kanji, Chief Financial Officer of the Company, have mutually
agreed to part ways effective February 28,
2023. The Company wishes to thank Rahim for his
contributions over his tenure and for his continued help and
efforts in the transition of his role and responsibilities. We wish
him success in his future endeavors.
To fill the vacancy following Mr. Kanji's departure, the Company
is pleased to announce the appointment of Sergio Patino as interim Chief Financial
Officer, effective February 28, 2023.
Mr. Patino is a Chartered Professional Accountant (CPA, CMA), and
has a Master's in business from University of
Alberta. He joined High Tide as a Financial Consultant in
November of 2022 bringing more than 20 years of global experience
across multiple industries. Prior to joining High Tide, he was the
America's Chief Financial Officer of a large Mining Construction
company. Prior to that he led the transformation of a global Supply
Chain group. He has work experience in Finance, Strategy, Supply
Chain, Project Accounting & Controls, Process and Systems
improvement, gained from roles held in large publicly traded
companies, in the Oil & Gas, Mining and Heavy Construction
industries.
CORRECTED DISCLOSURE
Further to the Company's press release dated January 30, 2023, the Company has refiled its:
(i) audited consolidated financial statements for the fiscal years
ended October 31, 2022 and 2021 (the
"Amended Annual Financial Statements") and (ii)
associated management's discussion and analysis for the fiscal
years ended October 31, 2022 and 2021
(the "Amended MD&A"), which were originally filed on
January 30, 2023.
The Amended Annual Financial Statements were filed to
correct the following typographical errors:
- Note 26 – Segmented Information: erroneously
referred to an amount of "$269,853"
for the "Total assets" in the retail segment as at October 31, 2022, which has been corrected to
"$241,394" (in thousands of Canadian
dollars);
- Note 8 – Intangible Assets and Good Will:
erroneously disclosed the forecasted growth rates of revenue for
the years after the first year for each of the following E-commerce
cash generating units:
-
- under the subheading "Ecommerce retail", the forecasted
growth rate range of revenue for the years after the first year has
been corrected from "4.7% to 10.7%" to "5% to 6%";
- under the subheading "Grasscity", the forecasted growth
rate range of revenue for the years after the first year has been
corrected from "-3.3% to 6.0%" to "3% to 5%";
- under the subheading "Smoke Cartel", the forecasted
growth rate range of revenue for the years after the first year has
been corrected from "3.0% to 20.3%" to "3% to 5%";
- under the subheading "FABCBD", the forecasted growth
rate range of revenue for the years after the first year has been
corrected from "0.7% to 6.6%" to "5% to 7%";
- under the subheading "Blessed CBD", the forecasted
growth rate range of revenue for the years after the first year has
been corrected from "-0.1% to 6.8%" to "5% to 7%"; and
- under the subheading "NuLeaf", the forecasted growth
rate range of revenue for the years after the first year has been
corrected from "5.7% to 27.6%" to "6% to 7%".
The Amended MD&A was filed to correct the following
typographical errors under the following headings:
- Retail Segment Performance, under the subheading
"Fabcbd.com", the number of orders processed for the during
2022 has been corrected from "51,920" to "69,845";
- Impairment Loss, under the subheading "Ecommerce
retail", the forecasted growth rate range of revenue for the years
after the first year has been corrected from "4.7% to 10.7%" to "5%
to 6%";
- Indefinite life intangible assets: erroneously
disclosed the forecasted growth rates of revenue for the years
after the first year for each of the following E-commerce cash
generating units:
-
- under the subheading "Grasscity", the forecasted growth
rate range of revenue for the years after the first year has been
corrected from "-3.3% to 6.0%" to "3% to 5%";
- under the subheading "Smoke Cartel", the forecasted
growth rate range of revenue for the years after the first year has
been corrected from "3.0% to 20.3%" to "3% to 5%";
- under the subheading "FABCBD", the forecasted growth
rate range of revenue for the years after the first year has been
corrected from "0.7% to 6.6%" to "5% to 7%";
- under the subheading "Blessed CBD", the forecasted
growth rate range of revenue for the years after the first year has
been corrected from "-0.1% to 6.8%" to "5% to 7%"; and
- under the subheading "NuLeaf Naturals", the forecasted
growth rate range of revenue for the years after the first year has
been corrected from "5.7% to 27.6%" to "6% to 7%".
These changes have no material impact on the Company's revenues,
earnings or financial position. All other information, including
numbers and totals, contained in the Amended Annual Financial
Statements and Amended MD&A remains unchanged. Although the
Company does not consider these to be material errors, the Company
has filed the Amended Annual Financial Statements and Amended
MD&A in the interest of full disclosure and transparency.
The Amended Annual Financial Statements and Amended
MD&A 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. The Amended Annual
Financial Statements and Amended MD&A replace and supersede the
previously filed annual financial statements and associated
management's discussion and analysis and therefore the original
annual financial statements and associated management's discussion
and analysis should be disregarded. Concurrent with filing the
Amended Financial Statements and Amended MD&A, the Chief
Executive Officer and Chief Financial Officer have filed the
appropriate Form 52-109F1R – Certification of Refiled Annual
Filings.
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 151 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 ("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.
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 development and performance 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; the market for the
Company's current and proposed product offerings, as well as the
Company's ability to capture market share; 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; same-store sales
and consolidated gross margins continuing to increase in the first
fiscal quarter of 2023 and beyond; the Company making meaningful
increases to its revenue profile; the Company continuing to
increase its revenue through the first fiscal quarter of 2023, and
the remainder of the year; the anticipated sales from continuing
operations for the financial year of the Company ending
October 31, 2023; the Company hitting
its forecasted revenue and sales projections for the first fiscal
quarter of 2023; Mr. Kanji stepping down as Chief Financial Officer
and Mr. Patino serving as interim Chief Financial Officer,
effective February 28, 2023; 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
(including, without limitation, Mr. Kanji stepping down as Chief
Financial Officer and Mr. Patino serving as interim Chief Financial
Officer, effective February 28,
2023); 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, the 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, 2023; the Company will
complete its proposed acquisitions and transactions; the Company
will hit its forecasted revenue and sales projections for the first
fiscal quarter of 2023; same-store sales and consolidated gross
margins will continue to increase in the first fiscal quarter of
2023 and beyond; the Company will make meaningful increases to its
revenue profile; the Company will continue to increase its revenue
through the first fiscal quarter of 2023, and the remainder of the
year; and the Company will continue 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, 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 sales from continuing operations for the
financial year of the Company ending October
31, 2023; risk that the Company will not hit its forecasted
revenue and sales projections for the first fiscal quarter of 2023;
risk that same-store sales and/or consolidated gross margins 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 first
fiscal quarter of 2023, and the remainder of the year, but that it
will decease and/or plateau; risks surrounding Mr. Kanji's
departure as Chief Financial Officer and Mr. Patino stepping in as
interim Chief Financial Officer, effective February 28, 2023; and risk that the Company will
be unable to grow its online retail portfolio through further
strategic and accretive acquisitions.
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, (iv) net proceeds from the Company's financings,
including, without limitation the at-the-market program and
available credit facilities. 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/high-tide-announces-management-change-and-corrects-disclosure-301746981.html
SOURCE High Tide Inc.