The Company Also Announces $2.8 Million Paydown From Convertible Debenture
Balance
CALGARY,
AB, Dec. 29, 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, is pleased
to reflect on its key milestones for 2023, a year that saw the
Company once again achieve record growth while surpassing its
communicated goals. From becoming one of the few publicly traded
cannabis companies anywhere in the world to generate positive free
cash flow five months ahead of its publicly communicated timeline,
to closing the year as the top revenue-generating cannabis company
in Canada for the second
consecutive year1, to launching Cabanalytics Consumer
Insights (CCI), a consumer-facing magazine style digital
publication which is an extension of the highly successful
Cabanalytics business data and insights platform, the Company
continuously demonstrated a commitment to innovation and
responsible growth while maximizing shareholder value.
PAYDOWN OF CONVERTIBLE
DEBENTURE
The Company also announced the paydown of $2.8 million from its convertible debenture
balance using cash on hand. This, along with the restructuring
announced on November 1, 2023, has
resulted in the balance of this debenture being reduced from
$8.9 million then to just over
$1 million today. With one year to go
until the formal maturity date of this debenture, the Company's
total gross debt now sits at $29
million, representing 1.1 times the Adjusted EBITDA reported
by the Company over the past four quarters.
High Tide's 2023 Highlights:
- Realized a current annualized revenue run rate of over
$500 million dollars and remains the
top revenue-generating¹ cannabis company in Canada
- Achieved positive free cash flow five months ahead of the
publicly communicated timeline
- Generated record Adjusted EBITDA over the nine months ending
July 31, 2023
- Paid down a further $2.8 million
on its convertible debenture using cash on hand, thus bringing its
balance to just over $1 million
currently versus $8.9 million at the
start of 2023
- Achieved industry-leading same-store sales growth of 31% during
the first three quarters of fiscal 2023
- Improved cash on hand to $25.7
million as of July 31, 2023,
versus $18.3 million as of
July 31, 2022
- Reduced gross debt to $29 million
currently, versus $38.7 million at
the end of calendar 2022, while meaningfully growing the
business
- Obtained coverage from three new equity research analysts,
bringing the number of brokerages with coverage up to seven
- Added 13 new Canadian stores, both organically and through
accretive acquisitions, closing the year at 162 stores across
British Columbia, Alberta, Saskatchewan, Manitoba and Ontario
- Delivered rapid growth in its unique loyalty program, which
remains the largest bricks-and-mortar cannabis loyalty program in
Canada, with over 1.2 million
ELITE and Cabana Club members
- Launched CCI to over 1.2 million ELITE and Cabana Club
members
- Ranked 38th out of 425 in the Globe and Mail's annual ranking
of Canada's "Top Growing
Companies" with 1,040% revenue growth over three years. This marks
the third year in a row the Company has earned a spot on this
prestigious list
- Claimed the top spot in the Financial Times list of
fastest-growing retailers in the Americas for 2023
- Grew its World Vision sponsorship support to 324 children
internationally after committing to sponsoring two additional
children for every new store that opens in Canada
____________________________
|
1 Ranking
relates to companies reporting in CAD, as reported by
https://www.newcannabisventures.com/cannabis-company-revenue-ranking/
|
"Once again, I would like to thank our loyal customers, team
members and shareholders for their ongoing support as we delivered
yet another groundbreaking year for High Tide and continuously
outperformed our peers, some of whom did not survive 2023. With
their support, we were able to execute our business plan, which saw
us emerge as one of the few publicly traded cannabis companies in
the world to generate positive free cash flow. Our rapid revenue
growth and Adjusted EBITDA continue to expand as we leverage the
strengths of our diversified cannabis ecosystem and experience
strong growth in our Cabana Club loyalty program, which now sits at
over 1.2 million members. On top of these achievements, we have
also been able to reduce the balance of our convertible debenture
by approximately 90% one year prior to its formal maturity date. I
am optimistic that this success will be recognized by the capital
markets as their sentiment towards the cannabis industry inevitably
shifts," said Raj Grover, Founder and Chief Executive Officer
of High Tide.
"I also want to once again reiterate that it is my goal to see
High Tide become a top-five MSO with significant retail operations
beyond North America. We continue
to see positive momentum in the United
States, where rescheduling seems increasingly possible in
2024. Despite delays in Germany's
cannabis legalization plans, we remain optimistic that the sale of
recreational cannabis to adults through specialty shops could begin
by early 2025, providing an opportunity for us to take our Canna
Cabana brand to Europe. While we
are excited about potential international expansion, our core focus
for 2024 will remain on growing our bricks-and-mortar footprint in
Canada, particularly given the
Government of Ontario's recent
announcement that it intends to double the provincial cannabis
store cap. This move will make it easier for Ontario cannabis retailers to compete with the
illicit market while materially growing revenue," added Mr.
Grover.
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 162 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 2021, 2022 and 2023 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 effect of the company performance on the
capital markets, the ability of the Company to become a top 5 MSO
with significant retail operations beyond North America, our ability to grow our bricks
and mortar footprint in Canada,
the expansion of the store cap in Ontario, the legalization of Cannabis in new
markets and expansion of the company to new jurisdictions on the
timelines indicated herein, and the ability for cannabis retailers
to compete with the illicit market while growing revenue. 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.
CONTACT INFORMATION
Media Inquiries
Omar
Khan
Chief Communications and Public Affairs
Officer
High Tide
Inc.
omar@hightideinc.com
403-770-3080
Investor Inquiries
Vahan
Ajamian
Capital Markets Advisor
High
Tide Inc.
vahan@hightideinc.com
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SOURCE High Tide Inc.