CALGARY, AB, May 20, 2022 /PRNewswire/ – 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 its Cabana Club loyalty program has surpassed the milestone of 515,000 members. This figure represents 110% growth from the 245,000 members the Cabana Club had when the Company launched its innovative cannabis discount club model less than seven months ago.
The Company also announced that its Canna Cabana retail cannabis store located at 1375 Weber Street East in Kitchener, Ontario, has begun selling recreational cannabis products for adult use. This opening represents High Tide’s 121st branded retail location across Canada, and 39th in Ontario, selling recreational cannabis products and consumption accessories. This store further grows High Tide’s footprint in the Kitchener-Waterloo Region, which is Ontario’s fifth-largest metropolitan area with a population of over 575,000, and is home to multiple large post-secondary institutions including Wilfred Laurier University, the University of Waterloo, and Conestoga College. The store is located in a retail plaza, adjacent to Ontario Highway 8, that is anchored by a major national grocery chain and discount retailers.
“I know that the last several months have been incredibly difficult in the capital markets, including our own equity performance. As the largest shareholder of High Tide, I have also been feeling the effects of these trying times. Despite these challenges, I have yet to sell a single share, and continue to view High Tide as an undervalued company – a sentiment which is shared by the entire senior management and board of directors of the Company. Our business continues to grow further from the highs we set in Q1 2022 and our business fundamentals remain strong, as evidenced by the exponential increase in our Cabana Club membership, which now stands at over 515,000,” said Raj Grover, President and Chief Executive Officer of High Tide. “We also continue to grow our presence in strategic markets, such as through the opening of our new store in Kitchener, which builds on our success in the Kitchener-Waterloo area, a region with favourable cannabis demographics where we have strong brand recognition and a foothold from our three established locations. As a hub for tech talent and higher education, the Kitchener-Waterloo region’s quick growth and younger population, relative to the provincial average makes it an ideal market for our company. High Tide’s Canadian bricks-and-mortar discount club model has continued to exceed expectations in both revenue and customer volume, and throughout the remainder of 2022, we plan to further grow our Canna Cabana store network, with the goal of ending the year with 150 locations,” added Mr. Grover.
The Company is also pleased to announce that further to its press releases dated March 3, 2022 and April 27, 2022, the Company has completed its acquisition (the “Acquisition“) of the final remaining operating cannabis store in Ontario (the “Store“) operating under the name Crossroads Cannabis (“Crossroads“), for CAD$0.6 Million. The Store is located in Woodstock, Ontario, in a shopping centre anchored by a large national home improvement store. The closing of the Acquisition, together with the aforementioned opening of the new Canna Cabana store in Kitchener, grows the number of High Tide’s branded retail cannabis stores to 122 across Canada, and 40 in Ontario.
The Acquisition was completed pursuant to the terms of an asset purchase agreement dated March 2, 2022, as amended on April 22, 2022 (the “Acquisition Agreement“). High Tide acquired the Store for 138,656 common shares of High Tide (each a “High Tide Share“) valued at CAD$634 Thousand (the “Share Consideration“), at a deemed price of CAD$4.573 per High Tide Share, being equal to the Discounted Market Price (as such term is defined in the TSX Venture Exchange (“TSXV“) policies) as of the date the Acquisition was initially announced. The closing of the Acquisition remains subject to final approval from the TSXV.
SOURCE High Tide Inc