The Company Achieved Significant Sequential
Improvement in Cost Reduction in Line With Its Goal to Achieve
Positive Free Cash Flow by the End of This Calendar
Year
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.
- 13th Straight Quarter of Positive Adjusted EBITDA,
Representing a 174% Increase Year-Over-Year and 20% Sequentially,
Driven by Significant Cost Reductions in General and Administrative
Expenses
- High Tide Reaches 9.5% of Canadian Cannabis Retail Market
Share Outside of Quebec1, Up From
9% in the Previous Quarter
- Same-Store Sales Increased by 30% Year-Over-Year and 1%
Sequentially. Calculated Daily Same-Store Sales Increased by 5%, as
There Were Three Fewer Days in the Quarter, Representing the
Seventh Consecutive Quarter of Same-Store Sales Growth
- High Tide Remains the Highest Revenue Generating Cannabis
Company Reporting in Canadian
Dollars2
- Canna Cabana Continues to be the Largest Non-Franchised
Cannabis Retailer in Canada With
153 Locations and Surpasses 1,040,000 Cabana Club Members, While
High Tide's Global Customer Database Exceeds 4.5
Million
CALGARY,
AB, June 14, 2023 /CNW/ - High Tide Inc.
("High Tide" or the "Company") (Nasdaq: HITI) (TSXV:
HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built
to deliver real-world value across every component of cannabis,
released today its financial results for the second fiscal quarter
of 2023 ended April 30, 2023, the
highlights of which are included in this news release. The full set
of consolidated financial statements for the three and six months
ended April 30, 2023, and the
accompanying management's discussion and analysis can be accessed
by visiting the Company's website at www.hightideinc.com, its
profile pages on SEDAR at www.sedar.com, and EDGAR
at www.sec.gov.
_________________________________
|
1Based on
Statistics Canada for the months of February 2023 March 2023 and
Hifyre data for April 2023, not including the province of
Quebec.
|
2Based on
reporting by New Cannabis Ventures as of May 15, 2023. 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/
|
|
Second Fiscal Quarter 2023 – Financial Highlights:
- Revenue increased to $118.1
million in the second fiscal quarter of 2023 compared to
$81.0 million during the same period
in 2022, representing an increase of 46% year-over-year and was
consistent with the previous quarter. Note that the second fiscal
quarter of 2023 had three fewer days and is a seasonally slower
quarter when compared to the first fiscal quarter of 2023
- Gross profit increased to $31.6
million in the second fiscal quarter of 2023 compared to
$22.7 million during the same period
in 2022, representing an increase of 39% year-over-year and was
down 2% sequentially as there were 3% fewer days
- Gross profit margin in the three months ended April 30, 2023, was 27%, consistent with the
previous three quarters. The Company notes that gross margins
earned in its bricks-and-mortar stores ticked higher
sequentially
- Adjusted EBITDA increased to $6.6
million in the second fiscal quarter of 2023 compared to
$2.4 million during the same period
in 2022, representing increases of 174% year-over-year and 20%
sequentially3
- Continued cost-saving measures implemented by the Company
resulted in a decrease in general and administrative expenses as a
percentage of revenue to 5% in the second fiscal quarter of 2023,
an improvement from 7% in the second fiscal quarter of 2022 and 6%
sequentially
- Salaries, wages and benefits represented 12% of revenue in the
second fiscal quarter of 2023, consistent with the prior four
quarters
- Cabanalytics data sales were $6.4
million in the second fiscal quarter of 2023 compared to
$5.1 million for the same quarter
last year. Sequentially, Cabanalytics data sales decreased by
3%
- For locations operational throughout the second fiscal quarter
of 2023 and 2022, same-store sales significantly increased by 30%
year-over-year. Sequentially, same-store sales increased by 1%.
Calculated daily, same-store sales increased by 5%, as there were 3
fewer days in the quarter, representing the seventh consecutive
quarter of same-store sales growth
- The Company continued the rollout of ELITE, the
first-of-its-kind cannabis paid loyalty program in Canada, with membership reaching over 13,500
as of June 14, 2023 representing a
42% increase since March 17,
2023
- Loss from operations improved to ($2.6)
million in the second fiscal quarter of 2023, compared to
($7.6) million during the same period
in 2022, and ($3.9) million
sequentially, representing a reduction in losses of 65% and 33%
respectively
- Net loss improved to ($1.6)
million in the second fiscal quarter of 2023, compared to
($8.3) million during the same period
in 2022 and ($3.9) million
sequentially, representing reductions in net losses of 81% and 59%,
respectively
- The Company generated fully diluted earnings per share of
($0.02) in the second fiscal quarter
of 2023, compared to ($0.14) during
the same period in 2022 and ($0.05)
sequentially, representing improvements of 86% and 60%,
respectively
- Free cash flow was ($2.0) million
in the second fiscal quarter of 2023 compared to ($0.8) million in the first fiscal quarter of
2023. Importantly, this includes a meaningful reduction of
$6.8 million dollars in accounts
payable and accrued liabilities during the second fiscal quarter.
Free cash flow also represented a 66% improvement versus
($5.8) million in the second fiscal
quarter of 20224
- Cash on hand as of April 30,
2023, totalled $22.5
million
_______________________
|
3Adjusted
EBITDA is a non-IFRS measure. This measure, as well as other
non-IFRS measures reported by the Company, are defined in the
EBITDA and Free Cash Flow sections of this news release.
|
|
"I'm delighted to report continued positive momentum in all
aspects of our business, including the third consecutive quarter of
record revenue generation and Adjusted EBITDA, despite this being a
seasonally slower quarter and having three fewer days when compared
to the previous quarter. Importantly, this growth was achieved
organically, with gross margins remaining consistent. We
accomplished this by continuing to focus on our business
fundamentals through our superior retail concept, including
expanding our higher margin white label offerings in Ontario, Manitoba and Saskatchewan, increasing customer adoption of
our Fastendr kiosks across our Canadian bricks-and-mortar
stores, driving meaningful cost savings in areas such as G&A
expenses, and by temporarily scaling back on our aggressive growth
strategy. We remain on track towards achieving our communicated
goal of generating positive free cash flow by the end of calendar
2023. Our focus on operating efficiencies and the continued
execution of our business plan has set us apart from many of our
competitors, some of whom continue to experience significant
operational and financial headwinds," said Raj Grover, President
and Chief Executive Officer of High Tide.
"Our unique membership-based innovative discount club model has
proven yet again to be superior strategically in both attracting
and retaining new customers, having surpassed one million members
in our Cabana Club loyalty program, which remains the largest
cannabis bricks-and-mortar loyalty plan in Canada. ELITE, which is the next evolution of
our discount club model, has experienced 42% growth since we last
reported, strengthening our bottom line and solidifying our loyalty
loop with our club members. Our bricks-and-mortar margins have
increased by approximately 1% every quarter for the last 5
quarters, and we feel there is further opportunity to increase
margins in most markets where we operate. Our same-store sales
growth shows no sign of slowing down, as we saw a 5% sequential
increase when calculated daily. While we are very proud to have
achieved nearly 10% of the Canadian retail market share outside of
Quebec, we believe there remains a
significant opportunity to continue moving towards our goal of
capturing 15% of this market. I consider these results a huge
accomplishment given the extremely competitive market conditions in
Canada, and full credit must go to
our team, which I firmly believe is the best in the cannabis
space," added Mr. Grover.
__________________________________
|
4Free Cash
Flow is a non-IFRS measure. This measure as well as other non-IFRS
measures reported by the Company, are defined in the EBITDA and
Free Cash Flow sections of this news release. The Company has
adjusted how it calculates Free Cash Flow in this quarter and has
provided a table of the calculations for the second fiscal quarter
of 2022, the first fiscal quarter of 2023, and the second fiscal
quarter of 2023 in its filing. The Company believes this new
calculation more accurately represents the cash generation
activities of the Company from ongoing operations and Free Cash
Flow available for growth. See note (2) below in the Free Cash Flow
sections of this news release for additional definitions and
explanations.
|
|
Second Fiscal Quarter 2023 – Operational Highlights
(February 1- April 30):
- The Company ranked 31st out of 500 on the Financial Times
Americas' Fastest Growing Companies 2023 List and took the top spot
in the retail category
- The Company announced that certain officers, directors, and
consultants led by the Company's President and Chief Executive
Officer, in the aggregate, acquired 258,921 common shares in the
capital of High Tide on the open market between March 24 and March 29 at an average price
of $1.59 per Common Share
- The Company presented virtually at the Sequire Cannabis &
Psychedelics Conference
- Organic retail store expansion continued with 1 new Canna
Cabana location opening in Edmonton,
Alberta
- The Company continued the rollout of its higher-margin Cabana
Cannabis Co products in Saskatchewan, Manitoba and Ontario, with 13 white label SKUs currently
being sold in these markets
- The Company also announced that on April
20, 2023 '4/20', it generated over $2
million in total retail gross revenues across all retail
platforms, representing a 64% increase from the previous Thursday.
The Company's Canadian bricks-and-mortar stores reported a 46%
increase, while sales across its e-commerce platforms
(Grasscity.com, Smokecartel.com, Dailyhighclub.com, Dankstop.com,
Nuleafnaturals.com, FABCBD.com, BlessedCBD.co.uk, and
BlessedCBD.de) reported an increase of 216% over the previous
Thursday
- The Company celebrated Earth Day 2023 by announcing it has
contributed to the diversion of over 20,000 pounds of plastic waste
from landfills through its partnership with [Re] Waste
- The Company maintained its status as the highest
revenue-generating cannabis company in Canada²
Subsequent Events (May 1 -
present):
- Memberships in the Cabana Club loyalty program have increased
to over 1,040,000 from 550,000 an increase of 89% year-over-year
and 7% sequentially
- ELITE memberships for the second fiscal quarter totalled over
13,500 members, representing an increase of 42% from 9,500 on
March 17, 2023
- Organic retail store expansion continued with 1 new Canna
Cabana location opening in Grande
Prairie, Alberta
- The Company now sponsors 306 children internationally through
World Vision as per its previously stated commitment to sponsor two
children for every new store opened
- The Company announced that the founder of FABCBD exercised his
put option for the remaining 20% of FABCBD not owned by High Tide.
Accordingly, the Company acquired the remaining 20% ownership in
FABCBD by issuing 386,035 common shares of High Tide valued at
$747,827 on the basis of a deemed
price per High Tide Share of $1.9372
- The Company welcomed the passage of Bill 10 by the Manitoba legislature resulting in the repeal
of Manitoba's 6% Social
Responsibility Fee on legal cannabis sales retroactive to
January 1st, 2022
Selected financial information for the second quarter ended
April 30, 2023:
(Expressed in thousands of Canadian Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended April 30
|
|
Six Months Ended
April 30
|
|
|
|
|
2023
|
|
2022
|
Change
|
|
2023
|
|
2022
|
|
|
Change
|
|
|
|
|
$
|
|
$
|
|
|
$
|
|
$
|
|
|
|
Revenue
|
|
|
|
118,136
|
|
81,031
|
46 %
|
|
236,212
|
|
153,249
|
|
|
54 %
|
Gross Profit
|
|
|
|
31,569
|
|
22,694
|
39 %
|
|
63,751
|
|
45,676
|
|
|
40 %
|
Gross Profit
Margin
|
|
|
|
27 %
|
|
28 %
|
(1 %)
|
|
27 %
|
|
30 %
|
|
|
(3 %)
|
Total Operating
Expenses
|
|
|
|
(34,211)
|
|
(30,272)
|
(13 %)
|
|
(70,314)
|
|
(59,401)
|
|
|
(18 %)
|
Adjusted
EBITDA
|
|
|
|
6,589
|
|
2,401
|
174 %
|
|
12,089
|
|
5,357
|
|
|
126 %
|
Loss from
Operations
|
|
|
|
(2,642)
|
|
(7,578)
|
65 %
|
|
(6,563)
|
|
(13,725)
|
|
|
52 %
|
Net loss
|
|
|
|
(1,568)
|
|
(8,277)
|
81 %
|
|
(5,429)
|
|
(15,629)
|
|
|
65 %
|
Loss per share
(Basic)
|
|
|
|
(0.02)
|
|
(0.14)
|
86 %
|
|
(0.07)
|
|
(0.28)
|
|
|
74 %
|
The following is a reconciliation of Adjusted EBITDA to Net
Loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended April 30
|
|
Six Months Ended
April 30
|
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Net (loss)
income
|
|
(1,568)
|
|
(8,277)
|
|
|
(5,430)
|
|
(15,629)
|
|
Income taxes
(recovery)
|
|
(2,041)
|
|
(800)
|
|
|
(3,277)
|
|
(1,864)
|
|
Accretion and
interest
|
|
1,759
|
|
1,541
|
|
|
3,572
|
|
3,092
|
|
Depreciation and
amortization
|
|
7,699
|
|
7,627
|
|
|
15,685
|
|
14,738
|
|
EBITDA
(1)
|
|
5,849
|
|
91
|
|
|
10,550
|
|
337
|
|
Foreign exchange loss
(gain)
|
|
2
|
|
107
|
|
|
(13)
|
|
204
|
|
Transaction and
acquisition costs
|
|
435
|
|
669
|
|
|
1,100
|
|
1,578
|
|
(Gain) loss revaluation
of derivative liability
|
|
(1,288)
|
|
(728)
|
|
|
(2,549)
|
|
(1,253)
|
|
Loss (gain) on
extinguishment of debenture
|
|
-
|
|
(133)
|
|
|
-
|
|
(115)
|
|
Impairment
loss
|
|
-
|
|
-
|
|
|
-
|
|
89
|
|
Share-based
compensation
|
|
1,532
|
|
2,353
|
|
|
2,968
|
|
4,255
|
|
Loss (gain) on
revaluation of marketable securities
|
|
(19)
|
|
43
|
|
|
(27)
|
|
262
|
|
Gain on extinguishment
of financial liability
|
|
78
|
|
-
|
|
|
60
|
|
-
|
|
Adjusted EBITDA
(1)
|
|
6,589
|
|
2,401
|
|
|
12,089
|
|
5,356
|
|
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.
|
Free Cash Flow
(²)
|
Q2
2023
|
Q1
2023
|
Q2
2022
|
Net cash provided by
(used in) operating activities
|
1,365
|
2,114
|
(2,236)
|
Sustaining
Capex
|
(625)
|
(246)
|
(1,614)
|
Lease Liability
Payments
|
(2,691)
|
(2,715)
|
(1,934)
|
Free Cash
Flow
|
(1,951)
|
(846)
|
(5,784)
|
Note:
|
(2)
|
The Company defines
free cash flow as net cash provided by (used in) operating
activities, minus sustaining capex, minus lease liability payments.
Sustaining Capex is defined as leasehold improvements and
maintenance spending required in the existing business. The most
directly comparable financial measure is net cash provided by
operating activities, as disclosed in the consolidated statement of
cash flows. It should not be viewed as a measure of liquidity or a
substitute for comparable metrics prepared in accordance with IFRS.
The Company has revised how it calculates Free Cash Flow from the
previously disclosed definition to further clarify for investors
the subset of Capex that relates to growth versus sustaining Capex
and to better reflect the cash flow generation from ongoing
operations of the existing business. The Company believes this new
calculation more accurately represents the cash generation
activities of the Company from ongoing operations and Free Cash
Flow available for growth. It should be noted that these
performance measures are not defined under IFRS and may not be
comparable to similar measures used by other entities.
|
Outlook
High Tide is the market leader in Canadian bricks-and-mortar
cannabis retail, with 153 locations operating across the country
and a loyalty base exceeding 1,040,000 Cabana Club members. Having
generated rising positive EBITDA for 13 straight quarters and with
national market share outside Quebec approaching 10%, the Company is now
working towards its goal of generating positive free cash flow by
the end of calendar 2023. The Company expects this to be achieved
by increasing same-store sales, continued incremental upward
momentum in gross margins in its Canadian bricks-and-mortar
business, and strong cost controls. The Company plans to roll out
more white-label SKUs of its Cabana Cannabis Co. brand through the
course of the year, which should be additive to gross margins. We
are pleased with the initial uptake of Cabana ELITE, our premium
paid membership offering, with over 13,500 customers having signed
up to date. We expect this number to climb steadily in the coming
quarters, which should add a recurring high-margin revenue line and
further enhance customer loyalty.
High Tide's commitment to operational excellence, including its
real estate strategy and its differentiated discount club model,
has made it a clear standout in the industry which has
unfortunately seen firms of all sizes struggle. The Company expects
that this shakeout will likely continue over the coming 12 months
as we pass the pivotal five-year anniversary of cannabis
legalization and many expiring leases are not renewed. The Company
currently plans to open more stores in the second half of calendar
2023 than in the first half of the year. However, considering the
macro environment, this growth will still be relatively muted
compared to its historical pace. Regarding potential future
M&A, there is currently a heightened level of opportunities
coming to market. While we continue to feel that our share price
does not currently reflect the Company's true value, we continue to
evaluate every opportunity. That said, we plan to be very
selective, as we believe we are very well positioned to engage only
on opportunities which are truly the most strategic, attractive and
accretive and thus create lasting, meaningful value for
shareholders.
High Tide Earnings Event Webcast
The Company will host a webcast and conference call to discuss
the Financial Statements at 11:30 AM
(Eastern Time) Thursday, June 15, 2023.
Webcast Link for High Tide Earnings Event:
https://events.q4inc.com/attendee/233560441
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 webcast replay will be available at the
same link above.
Participants who wish to ask questions during the event may do
so through the call-in line, the access information for which is as
follows:
Participant Details:
Joining by Telephone:
Canada (Toll-Free):
1 833 950 0062
Canada (Local):
1 226 828 7575
United States (Local):
1 404 975 4839
United States (Toll-Free):
1 833 470 1428
Access Code:
475667
*Participants will need to enter the participant access code
before being met by a live operator*
ATM PROGRAM QUARTERLY UPDATE
Pursuant to the Company's at-the-market equity offering program
(the "ATM Program") that allows the Company to issue up to
$40 million (or the equivalent in
U.S. dollars) of common shares ("Common Shares") from
treasury to the public from time to time, at the Company's
discretion and subject to regulatory requirements, as required
pursuant to National Instrument 44-102 – Shelf Distributions
and the policies of the TSX Venture Exchange (the "TSXV"),
the Company announces that, during its second fiscal quarter ended
April 30, 2023, the Company has
issued an aggregate of 22,000 Common Shares over the TSXV and
Nasdaq Capital Market ("Nasdaq"), for aggregate gross
proceeds to the Company of less than $0.1
million.
Pursuant to an equity distribution agreement dated December 3, 2021, entered into among the Company,
ATB Capital Markets Inc. and ATB Capital Markets USA Inc. (the "Agents"), associated
with the ATM Program (the "Equity Distribution Agreement"),
a cash commission of less than $0.01
million on the aggregate gross proceeds raised was paid to
the Agents in connection with their services under the Equity
Distribution Agreement during the second fiscal quarter ended
April 30, 2023.
The Company intends to use the net proceeds of the ATM Program,
if any, and at the discretion of the Company, to fund strategic
initiatives, it is currently developing, to support the growth and
development of the Company's existing operations, funding future
acquisitions as well as working capital and general corporate
purposes.
Common Shares issued pursuant to the ATM Program will be issued
pursuant to a prospectus supplement dated December 3, 2021 (the "Canadian Prospectus
Supplement") to the Company's final base shelf prospectus dated
April 22, 2021, filed with the
securities commissions or similar regulatory authorities in each of
the provinces and territories of Canada (the "Canadian Shelf
Prospectus") and pursuant to a prospectus supplement dated
December 3, 2021 (the "U.S.
Prospectus Supplement") to the Company's U.S. base prospectus
dated September 17, 2021 (the
"U.S. Base Prospectus") included in its registration
statement on Form F-10 (the "Registration Statement") and
filed with the U.S. Securities and Exchange Commission (the
"SEC"). The Canadian Prospectus Supplement and Canadian
Shelf Prospectus are available for download from SEDAR
at www.sedar.com, and the U.S. Prospectus Supplement, the U.S.
Base Prospectus and Registration Statement are accessible via EDGAR
on the SEC's website at www.sec.gov.
The ATM Program is effective until the earlier of (i) the date
that all Common Shares available for issue under the ATM Program
have been sold, (ii) the date the Canadian Prospectus Supplement in
respect of the ATM Program or Canadian Shelf Prospectus is
withdrawn and (iii) the date that the ATM Program is terminated by
the Company or Agents.
ABOUT HIGH TIDE
High Tide, Inc. is the leading community-grown, retail-forward
cannabis enterprise engineered to unleash the full value of the
world's most powerful plant. High Tide (HITI) is uniquely-built
around the cannabis consumer, with wholly-diversified and
fully-integrated operations across all components of cannabis,
including:
Bricks & Mortar Retail: Canna Cabana™ is the largest
non-franchised cannabis retail chain in Canada, with 153 current locations spanning
British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and growing. In 2021, Canna Cabana
became the first cannabis discount club retailer in Canada.
Retail Innovation: Fastendr™ is a unique and fully
automated technology that integrates retail kiosks and smart
lockers to facilitate a better buying experience through browsing,
ordering and pickup.
E-commerce Platforms: High Tide operates a suite of
leading accessory sites across the world, including Grasscity.com,
Smokecartel.com, Dailyhighclub.com, and Dankstop.com.
CBD: High Tide continues to cultivate the possibilities
of consumer CBD through Nuleafnaturals.com, FABCBD.com,
blessedcbd.de and blessedcbd.co.uk.
Wholesale Distribution: High Tide keeps that cannabis
category stocked with wholesale solutions via Valiant™.
Licensing: High Tide continues to push cannabis culture
forward through fresh partnerships and license agreements under the
Famous Brand™ name.
High Tide consistently moves ahead of the currents, having been
named one of Canada's Top Growing
Companies in both 2021 and 2022 by the Globe and Mail's Report on
Business Magazine and was ranked number one in the retail category
on the Financial Times list of Americas' Fastest Growing Companies
for 2023. To discover the full impact of High Tide, visit
www.hightideinc.com. For investment performance, don't miss the
High Tide profile pages on SEDAR and EDGAR.
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 may contain "forward-looking information"
and "forward-looking statements within the meaning of applicable
securities legislation. 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 statements 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 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; changes
in general and administrative expenses; future Business operations
and activities and the timing thereof; the future tax
liability of the Company; the estimated future
contractual obligations of the Company; the future
liquidity and financial capacity of the Company and its ability to
fund its working capital requirements and forecasted capital
expenditures; 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
opportunity for the Company to increase margins in markets where it
operates; same-store sales continuing to increase; the ability of
the Company to move toward and reach its goal to capture 15% of the
Canadian retail market share outside of Quebec; the Company making meaningful
increases to its revenue profile; the Company completing the
development of its cannabis retail stores; the Company's ability to
generate consistent free cash flow from operations and from
financing activities, including by amending its loan agreement, on
the timelines indicated herein; the Company's ability to create
lasting, meaningful shareholder value; 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 anticipated sales from
continuing operations; Cabana Club and Cabana ELITE loyalty
programs membership continuing to increase and the effect this will
have on revenue and customer loyalty; the Company having continued
upward momentum in gross margins in its Canadian bricks-and-mortar
business; the Company launching additional Cabana Cannabis Co.
branded SKUs on the timelines outlined herein and the effect this
will have on gross margins; the Company hitting its forecasted
revenue and sales projections; the intention of the Company to
complete the ATM Program and any additional offering of securities
of the Company; the aggregate amount of the total proceeds that the
Company will receive pursuant to the ATM Program or any future
offering; the Company's expected use of the net proceeds from the
ATM Program or any future offering; the listing of Common Shares
offered in the ATM Program or any future offering; the Company's
anticipation of M&A opportunities and its plan to be selective
with future M&A; and the Company continuing to grow its online
retail portfolio through further strategic and accretive
acquisitions.
Readers are cautioned to not place undue reliance on
forward-looking information. Actual results and developments may
differ materially from those contemplated by these statements.
Although the Company believes that the expectations reflected in
these statements are reasonable, such statements are based on
expectations, factors, and assumptions concerning future events
which may prove to be inaccurate and are subject to numerous risks
and uncertainties, certain of which are beyond the Company's
control, including but not limited to the risk factors discussed
under the heading "Non-Exhaustive List of Risk Factors" in Schedule
A to our current annual information form, and elsewhere in this
press release, as such factors may be further updated from time to
time in our periodic filings, available at www.sedar.com and
www.sec.gov, which factors are incorporated herein by reference.
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 applicable
securities legislation about prospective results of operations,
financial position or cash flows, which is 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 securities laws, the Company
undertakes no obligation to update such FOFI.
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SOURCE High Tide Inc.