Canadian Cannabis Retail Chain High Tide Welcomes Proposed U.S. Cannabis Administration and Opportunity Act
High Tide welcomes the proposed Cannabis Administration and Opportunity Act (CAOA), which aims to federally deschedule cannabis and expunge prior convictions. If passed, this could enhance opportunities for cannabis retail, particularly for High Tide, which is the most profitable Canadian cannabis retailer by Adjusted EBITDA. The Company plans to expand into the U.S. market through e-commerce and physical stores, contingent on CAOA's passage. Currently, High Tide operates 89 locations across Canada and has a robust online presence with nearly 100 million site visits in 2020.
- Proposed CAOA could lead to federal cannabis descheduling, expanding market opportunities.
- High Tide is Canada's most profitable cannabis retailer by Adjusted EBITDA.
- Plans for U.S. expansion through e-commerce acquisitions and physical stores.
- None.
High Tide Inc. (“High Tide” or the “Company”) (TSXV: HITI) (Nasdaq: HITI) (FRA: 2LYA), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, welcomes the proposed Cannabis Administration and Opportunity Act (CAOA) that was released today by Senate Majority Leader Chuck Schumer, Finance Chairman Ron Wyden and New Jersey Senator Cory Booker. If passed by both houses of Congress and signed into law by President Biden, the bill would, among other measures, federally deschedule cannabis, expunge prior convictions, maintain the authority of states to set their own cannabis policies, provide financial assistance to entrepreneurs from marginalized communities and remove penalties on financial institutions who choose to do business with licensed cannabis companies.
High Tide, which is Canada’s most profitable retailer of recreational cannabis as measured by Adjusted EBITDA1, and also operates several of the world’s most popular e-commerce platforms for consumption accessories and hemp-derived CBD totalling almost 100 million site visits in 20202, reiterated its commitment to continue expanding into the United States both through immediately accretive e-commerce acquisitions in the near future, and bricks and mortar sales, should the CAOA be signed into law.
"With eighteen states and Washington, DC, having already legalized cannabis for adults, and thirty seven states having done so for medical cannabis, a majority of Americans already have access to cannabis, whether medically or recreationally. This trend represents a huge opportunity for our e-commerce platforms regardless of federal legalization,” said Raj Grover, High Tide’s President & Chief Executive Officer. “As our team monitors the progress of the CAOA and other cannabis reform initiatives in Congress, we are engaged in several conversations with potential partners to ensure that High Tide is ready to begin bricks and mortar retail cannabis sales in the United States as soon as federally permissible,” added Mr. Grover.
ABOUT HIGH TIDE
High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the most profitable Canadian retailer of recreational cannabis as measured by Adjusted EBITDA, with 89 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its established ecommerce platforms including Grasscity.com, Smokecartel.com and Dailyhighclub.com, and more recently in the hemp-derived CBD space through CBDcity.com and FABCBD.com as well as its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. 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. Key industry investors in High Tide include Tilray Inc. (TSX: TLRY) (Nasdaq: TLRY) and Aurora Cannabis Inc. (TSX: ACB) (Nasdaq: ACB). Neither the 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
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include statements relating to the potential effects of the Transaction on the business of High Tide and statements with respect to High Tide’s ability to close the Transaction. While High Tide considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements also necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the retail cannabis markets; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the retail cannabis industries generally; income tax and regulatory matters; the ability of High Tide to implement its business strategy; competition; currency and interest rate fluctuations; the COVID-19 pandemic nationally and globally and the response of governments to the COVID-19 pandemic in respect of the operation of retail stores, High Tide’s ability to close the Transaction, and other risks. Readers are 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. Readers are further cautioned that the assumptions used in the preparation of such forward-looking statements (including, but not limited to, the assumption that (i) High Tide’s financial condition and development plans do not change as a result of unforeseen events, (ii) there will continue to be a demand, and market opportunity, for High Tide’s product offerings; (iii) current and future economic conditions will neither affect the business and operations of High Tide nor High Tide’s ability to capitalize on anticipated business opportunities, although considered reasonable by management of High Tide at the time of preparation, may prove to be imprecise and result in actual results differing materially from those anticipated, and as such, undue reliance should not be placed on forward-looking statements.
Forward-looking statements, forward-looking financial information and other metrics presented herein are not intended as guidance or projections for the periods referenced herein or any future periods, and in particular, past performance is not an indicator of future results and the results of High Tide in this press release may not be indicative of, and are not an estimate, forecast or projection of High Tide future results. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. High Tide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters referred to above and elsewhere in High Tide's public filings and material change reports, which are and will be available on SEDAR.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.
1 Adjusted EBITDA is a non-IFRS financial measure
2 According to data from Google analytics and Data Leader
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