This news release constitutes a "designated
news release" for the purposes of the Company's prospectus
supplement dated August 31, 2023, to
its short-form base shelf prospectus dated August 3, 2023.
- The Company Has Achieved Positive Free Cash
Flow1 of
$4.1 Million This Quarter, in Advance
of its Previously Stated Goal to Reach This Milestone by
December 2023
- Same-Store Sales Increased by 19% Year-Over-Year and 8%
Sequentially. Calculated Daily Same-Store Sales Increased by 5%,
Representing the Eighth Consecutive Quarter of Same-Store Sales
Growth
- The Company Remains the Largest Non-Franchised Cannabis
Retailer in Canada With 156
Locations and Surpasses 1.1 Million Cabana Club Members, Including
3 Million US Customers and a Global Customer Database Surpassing
4.6 Million
- The Company Further Enhanced the Growth Trajectory of its
Cabana ELITE Paid Membership Program Which Grew to Over 18,800
Members as of Today, Representing a 39% Increase from Q2, Growing
at a Faster Pace Than the Previous Two Quarters
- 14th Straight Quarter of Positive Adjusted
EBITDA2 of $10.2 Million, Representing Increases of 140%
Year-Over-Year and 55% Sequentially, Including a One-Time Return of
$2.4 Million From Manitoba's
SRF
- High Tide Maintains Canadian Cannabis Retail Market Share
Excluding Quebec3 at 9.5%,
Through Continued Organic Growth
- High Tide Remains the Highest Revenue Generating Cannabis
Company Reporting in Canadian
Dollars4, and is the Fastest Growing
Retailer in the Americas as Reported by The Financial
Times5
__________________________________________________
|
1
Free 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
|
2Adjusted
EBITDA is a non-IFRS financial measure
3Based on
Statistics Canada for the months of May 2023 & June 2023 and
Hifyre data for July 2023, excluding the province of
Quebec
4Based on
reporting by New Cannabis Ventures as of September 14, 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/
5https://www.ft.com/americas-fastest-growing-companies-2023
|
|
CALGARY,
AB, Sept. 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 third fiscal quarter
of 2023 ended July 31, 2023, the
highlights of which are included in this news release. The full set
of consolidated financial statements for the three and nine months
ended July 31, 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.sedarplus.ca, and EDGAR at
www.sec.gov.
Third Fiscal Quarter 2023 – Financial Highlights:
- Revenue increased to $124.4
million in the third fiscal quarter of 2023 compared to
$95.4 million during the same period
in 2022, representing an increase of 30% year-over-year and 5%
sequentially
- Free cash flow was $4.1 million
in the third fiscal quarter of 2023 compared to ($2.0)
- million in the second fiscal quarter of 2023, and totalled
$1.3 million for the first nine
months of this fiscal year. This significant improvement was mainly
driven by the rapid increases in the Company's same-store sales
growth resulting from the continued momentum of its discount club
model and its strong focus on implementing cost control
measures
- Gross profit increased to $34.6
million in the third fiscal quarter of 2023 compared to
$25.8 million during the same period
in 2022, representing an increase of 34% year-over-year and 10%
sequentially
- Gross profit margin in the three months ended July 31, 2023, was 28%, consistent with previous
several quarters. The Company notes that gross margins earned in
its bricks-and-mortar stores once again ticked higher
sequentially
- Adjusted EBITDA² increased to $10.2
million (including a one-time return of $2.4 million from Manitoba's SRF) in the third fiscal quarter of
2023 compared to $4.2 million during
the same period in 2022 and $6.6
million in the second fiscal quarter of 2023, representing
an increase of 140% year-over-year and 55% sequentially
- Continued cost-saving measures implemented by the Company
resulted in a decrease in general and administrative expenses as a
percentage of revenue to 5.2% in the third fiscal quarter of 2023,
an improvement from 6.6% during the same period in 2022 and was
consistent sequentially
- Salaries, wages and benefits represented 11.1% of revenue in
the third fiscal quarter of 2023, showcasing an improvement from
12.0% during the same period in 2022 and 11.8% sequentially. This
was achieved by realizing operating efficiencies, including the
initial benefits from implementing the Fastendr technology in the
Company's stores
- Sales from Cabanalytics business data and insights platform
increased to $6.5 million in the
third fiscal quarter of 2023 from $5.5
million during the same period in 2022, representing an
increase of 19% year-over-year and 3% sequentially
- For locations operational throughout the third fiscal quarter
of 2023 and 2022, same-store sales increased by 19% year-over-year
and 8% sequentially. Calculated daily same-store sales increased by
5%, representing the eighth 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 18,800
members as of today, representing an increase of 5,300 members or
39% since June 13, 2023, growing at a
faster pace than the previous two quarters
- Loss from operations, which included $8.5 million of non-cash depreciation and
amortization expenses improved to ($0.7)
million in the third fiscal quarter of 2023, compared to
($4.7) million during the same period
in 2022, and ($2.6) million
sequentially, representing a reduction in losses of 86% and 75%,
respectively
- Net loss was ($3.6) million in
the third fiscal quarter of 2023, compared to ($2.7) million during the same period in 2022 and
($1.6) million sequentially, driven
by a decrease in income arising from revaluation of derivative
liabilities during this quarter
- Cash on hand as of July 31, 2023,
totalled $25.7 million, compared to
$18.3 in the same period of 2022,
representing an increase of 40% year-over-year and 14% sequentially
without obtaining any external funding during the quarter and
spending over $1 million on capital
expenditures
"I'm thrilled to report that our third fiscal quarter was the
best in High Tide's history since our inception, as we met our goal
of generating positive free cash flow of $4.1 million this quarter, five months ahead of
our previously communicated timeline and hence becoming less
reliant on macro and industry conditions. This record FCF
generation was a result of continued increases in our same-store
sales growth, which have continuously outpaced the national average
and totalled a tremendous 114% over the last seven quarters. This
quarter also included record revenue and adjusted EBITDA for our
Company, including reaching almost half a billion dollars in annual
run-rate sales. Through our laser-focused execution, we continue to
prove the strength of our innovative discount club model, which, in
our opinion, is the best cannabis retail concept in the country.
The Canna Cabana brand continues to gain popularity and is fast
becoming a household name in Canada, given that our average store in the
country now generates $2.8 million
versus the national average of our peers, excluding Quebec, which is just $1.2 million. Our core bricks-and-mortar business
line is supported by our uniquely diversified cannabis ecosystem
and over 4.6 million global customers in Canada, US, UK and the EU. Our ELITE customer
base growth accelerated during this quarter, as we continue to
focus on more in-store ELITE offerings and related inventory," said
Raj Grover, President and Chief Executive Officer of High Tide.
"As announced earlier today, we continue to innovate, amplify
and extract additional value from our existing data insights
infrastructure with the launch of 'Cabanalytics Consumer Insights,'
or 'CCI,' which will provide our club members with robust data on
consumer behaviour regarding the most current, hottest cannabis as
well as ancillary products and brands through a magazine-style,
monthly digitized publication. CCI is an extension of our highly
successful Cabanalytics business and data insights platform, which
will now be distributed to our ever-increasing membership base of
over 1.1 million loyal ELITE and Cabana Club members here in
Canada and eventually extended to
our unmatched global customer database of 4.6 million including
three million US customers. Subject to applicable regulatory
approvals, this presents another high-margin opportunity for our
company through targeted ad revenue generation, which will also
help to further solidify the loyalty loop with our club members as
well as product innovators, brand manufacturers and licensed
producers. Gross margins have remained stable for several quarters,
and our general and administrative expenses have continued to come
down as a percentage of revenue for the last few quarters and over
the past few years. Our over a decade-long industry experience,
innovative thinking, and operational mindset with a strong focus on
cost controls have led to superior profitability metrics with every
passing quarter. I'm also excited about the recent news coming out
of the US concerning the potential rescheduling of cannabis and the
possibility of a Senate Banking Committee markup of the SAFE
Banking Act within the next month. We are highly confident we'll be
able to move swiftly into the US with our tried, tested and
perfected, innovative discount club model. I couldn't be more proud
of our team for their focus, dedication and hard work this past
quarter to get us where we are today. However, with the US and
German potential cannabis opportunities on the horizon, we are only
just getting started, and the best is yet to come for High Tide,"
added Mr. Grover.
Third Fiscal Quarter 2023 – Operational Highlights
(May 1- July 31):
- Organic retail store expansion continued with 2 new Canna
Cabana locations: 1 in Alberta and
1 in Ontario
- The Company held its Annual General and Special Meeting of
Shareholders, where all members of the Board of Directors were
re-elected with near unanimous support
- The Company continues to have higher-margin Cabana Cannabis Co
products in Saskatchewan,
Manitoba and Ontario, with 13 white-label SKUs currently
being sold in these markets
- The Company maintained its status as the highest
revenue-generating cannabis company in Canada⁴
Subsequent Events (August 1 -
present):
- As of September 14, 2023
memberships in the Cabana Club loyalty program have increased to
over 1.1 million up from 750,000 members as of September 14, 2022, and 1,040,000 as of
June 14, 2023, representing an
increase of 47% year-over-year and 6% sequentially
- As of September 14, 2023 ELITE
memberships have grown to over 18,800 members up 5,300 from 13,500
as of June 14, 2023, representing an
increase of 39% sequentially
- Organic retail store expansion continued with 2 new Canna
Cabana locations in Ontario
- The Company filed a $100 million
final short form base shelf prospectus which includes an
at-the-market (ATM) equity offering program that allows the Company
to issue up to $30 million (or the
equivalent in U.S. dollars) of common shares from treasury to the
public from time to time, at the Company's discretion and subject
to regulatory requirements. The Company notes that its previous ATM
program expired with approximately 75% of the facility undrawn
- On August 1, 2023, the Company
appointed Sergio Patino as permanent
Chief Financial Officer
- The Company now sponsors 312 children internationally, through
World Vision as per its previously stated commitment to sponsor two
children for every new store opened
Selected financial information for the third quarter ended
July 31, 2023:
(Expressed in thousands of Canadian Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended July 31
|
|
Nine Months Ended
July 31
|
|
|
|
|
2023
|
|
2022
|
Change
|
|
2023
|
|
2022
|
|
|
Change
|
|
|
|
|
$
|
|
|
|
|
$
|
|
|
|
|
|
Revenue
|
|
|
|
124,352
|
|
93,354
|
30 %
|
|
360,564
|
|
248,604
|
|
|
45 %
|
Gross Profit
|
|
|
|
34,578
|
|
25,755
|
34 %
|
|
98,330
|
|
71,434
|
|
|
38 %
|
Gross Profit
Margin
|
|
|
|
28 %
|
|
27 %
|
1 %
|
|
27 %
|
|
29 %
|
|
|
(2 %)
|
Total Operating
Expenses
|
|
|
|
(35,240)
|
|
(30,425)
|
(16 %)
|
|
(105,551)
|
|
(89,828)
|
|
|
(18 %)
|
Adjusted
EBITDA
|
|
|
|
10,181
|
|
4,246
|
140 %
|
|
22,276
|
|
9,555
|
|
|
133 %
|
Loss from
Operations
|
|
|
|
(662)
|
|
(4,670)
|
86 %
|
|
(7,221)
|
|
(18,394)
|
|
|
61 %
|
Net loss
|
|
|
|
(3,574)
|
|
(2,717)
|
(32 %)
|
|
(9,147)
|
|
(18,346)
|
|
|
50 %
|
Loss per share (Basic
and Diluted)
|
|
|
|
(0.04)
|
|
(0.04)
|
0 %
|
|
(0.12)
|
|
(0.31)
|
|
|
(61 %)
|
The following is a reconciliation of Adjusted EBITDA to Net
Loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended July 31
|
|
Nine Months Ended
July 31
|
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
Net (loss)
income
|
|
(3,574)
|
|
(2,717)
|
|
|
(9,147)
|
|
(18,394)
|
|
Income taxes
(recovery)
|
|
204
|
|
731
|
|
|
(3,069)
|
|
(1,133)
|
|
Accretion and
interest
|
|
1,931
|
|
1,470
|
|
|
5,555
|
|
4,883
|
|
Depreciation and
amortization
|
|
8,493
|
|
7,182
|
|
|
24,179
|
|
21,920
|
|
EBITDA
(1)
|
|
7,054
|
|
6,666
|
|
|
17,518
|
|
7,276
|
|
Foreign exchange loss
(gain)
|
|
31
|
|
120
|
|
|
18
|
|
324
|
|
Transaction and
acquisition costs
|
|
801
|
|
1,014
|
|
|
1.849
|
|
2,271
|
|
(Gain) loss revaluation
of derivative liability
|
|
(73)
|
|
(6,078)
|
|
|
(2,477)
|
|
(7,331)
|
|
Loss (gain) on
extinguishment of debenture
|
|
-
|
|
(140)
|
|
|
-
|
|
(255)
|
|
Other gains
|
|
18
|
|
-
|
|
|
68
|
|
-
|
|
Impairment
loss
|
|
-
|
|
-
|
|
|
-
|
|
89
|
|
Share-based
compensation
|
|
2,350
|
|
1,734
|
|
|
5,318
|
|
5,988
|
|
Loss (gain) on
revaluation of marketable securities
|
|
-
|
|
146
|
|
|
(18)
|
|
409
|
|
Gain on extinguishment
of financial liability
|
|
-
|
|
784
|
|
|
-
|
|
784
|
|
Adjusted EBITDA
(1)
|
|
10,181
|
|
4,246
|
|
|
22,276
|
|
9,555
|
|
Note:
|
|
(1)
|
Earnings before
interest, taxes, depreciation, and amortization ("EBITDA") and
Adjusted EBITDA. These measures do not have a
standardised 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 the 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)
|
Q3
2023
|
Q2
2023
|
Q1
2023
|
Net cash provided by
(used in) operating activities
|
7,545
|
1,365
|
2,114
|
Sustaining
Capex
|
(705)
|
(625)
|
(246)
|
Lease Liability
Payments
|
(2,789)
|
(2,691)
|
(2,715)
|
Free Cash
Flow
|
4,051
|
(1,951)
|
(847)
|
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.
|
Outlook
High Tide is the largest Canadian non-franchised
bricks-and-mortar cannabis retailer, with 156 Canna Cabana
locations operating across the country and a loyalty base exceeding
1.1 million Cabana Club members. Earlier this year, the Company
announced its goal of achieving positive free cash flow by the end
of calendar 2023. The Company is pleased to report that with its
strong Q3 results, it has met this goal 5 months ahead of the
previously communicated timeline. Similarly, the Company discloses
that its current revenue run rate exceeds $500 million and thus has achieved its goal of
reaching this milestone by the end of its 2023 fiscal year.
Having demonstrated that its current operations can generate
meaningful free cash flow, the Company plans to return to
disciplined and responsible growth both organically and through
M&A while remaining free cash flow positive, moving forward
towards reaching its long-term goal of operating 250 locations
across Canada.
The Company continues to generate stable gross margins, driven
by its bricks-and-mortar margins ticking higher over the last six
quarters. The Company plans to focus on its recently launched
initiatives, such as CCI, ELITE membership sales, and higher margin
white-label offerings, including the continued increased adoption
of the Company's Fastendr kiosks, helping realize additional
operational efficiencies leading to enhanced profitability.
The Company is encouraged by recent news coming out of
the United States with respect to
the potential rescheduling of cannabis and the possibility of a
Senate Banking Committee markup of the SAFE Banking Act within the
next month. The Company remains poised to bring its tried,
tested and perfected innovative discount club model to the US
market as soon as permissible.
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) on Friday, September 15, 2023.
Webcast Link for High Tide Earnings Event:
https://events.q4inc.com/attendee/996785173
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
Participant access code:
457161
*Participants will need to enter the participant access code
before being met by a live operator*
ATM PROGRAM QUARTERLY UPDATE
The Company's at-the-market equity offering program (the "ATM
Program") that allowed the Company to issue up to $40 million (or the equivalent in U.S. dollars)
of 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"), expired on May 22,
2023. The Company announces that, during its third fiscal
quarter ended July 31, 2023, the
Company did not issue any Common Shares over the TSXV or Nasdaq
Capital Market ("Nasdaq") pursuant to the ATM Program.
Effective August 31, 2023, the
Company has launched the offering of a new ATM program to raise up
to $30 million (or the equivalent in
U.S. dollars) of 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 TSXV. As of the
date of this Press Release, no shares have been issued through this
program.
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 August 31, 2023 (the "Canadian Prospectus
Supplement") to the Company's final base shelf prospectus dated
August 3, 2023, 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
August 31, 2023 (the "U.S.
Prospectus Supplement") to the Company's U.S. base prospectus
dated August 3, 2023 (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.sedarplus.ca, 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 156 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;
same-store sales continuing to increase; the Company making
meaningful increases to its revenue profile; the Company completing
the development of its cannabis retail stores; the Company's
ability to continue to generate consistent free cash flow from
operations and from financing activities; the Company's ability to
maximize 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; 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
and/or any future offering; the Company's expected use of the net
proceeds from the ATM Program and/or any future offering; the
listing of Common Shares offered in the ATM Program and/or any
future offering; the Company continuing to grow its online retail
portfolio through further strategic and accretive acquisitions; the
ability of the Company's initiatives, such as CCI, ELITE membership
sales, and higher margin white-label offerings, including the
continued increased adoption of the Company's Fastendr kiosks, to
succeed and to realize additional operational efficiencies and lead
to enhanced profitability; legislative changes related to the
rescheduling of Cannabis in the United
States occuring on the timelines indicated herein, and the
ability of the Company to bring its discount club model to the US
market on the timeline indicated herein.
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.sedarplus.ca 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.