High Tide Opens Two New Canna Cabana Stores in Alberta and Saskatchewan
High Tide has announced the opening of two new Canna Cabana retail cannabis stores in Canada. The first store, at 40 Great Plains Road in Emerald Park, Saskatchewan, will open on June 29, 2024. The second store, at 122 4 Avenue West in Cochrane, Alberta, will open on June 30, 2024. These openings mark High Tide's 175th and 176th Canna Cabana locations in Canada.
Emerald Park is a well-established community near Regina, while Cochrane is a rapidly growing town near Calgary. Both locations were formerly retail cannabis stores. The openings are part of High Tide's strategy to expand its retail footprint by taking over leases from other cannabis businesses that have closed.
High Tide aims to open 20 to 30 new Canna Cabana stores by the end of 2024, supported by its strong free cash flow and potential mergers and acquisitions. CEO Raj Grover highlighted the company's innovative discount club model and its ongoing retail expansion.
- Opening of two new Canna Cabana stores, marking the 175th and 176th locations.
- Strategy of taking over fully built-out cannabis store leases, saving time and money.
- High cash flow supports continued expansion and potential M&A activities.
- Targeting 20 to 30 new store openings by the end of 2024.
- Innovative discount club model outperforming competitors.
- None.
Insights
Expanding Store Presence and Market Penetration
High Tide's announcement of two new Canna Cabana store openings is a clear indication of the company's aggressive expansion strategy. With these additions, the company now has 176 locations in Canada, reflecting its aim to capture a larger market share amidst the highly competitive cannabis retail landscape. The strategic locations in Emerald Park and Cochrane are notable. Emerald Park's high visibility and access from the Trans-Canada highway could attract a steady flow of customers, while Cochrane's rapid population growth and tourism potential make it an attractive market.
From a retail perspective, this expansion allows High Tide to leverage existing infrastructure from previously established cannabis stores, reducing setup costs and time. This approach shows operational efficiency by saving money and resources, which is critical in maintaining profitability in a market where many competitors are struggling.
High Tide's focus on increasing its retail footprint along with maintaining a strong free cash flow profile hints at a solid financial strategy that could position it well for future growth. However, investors should be cautious about potential market saturation and the long-term sustainability of such rapid expansion.
Financial Implications and Strategic Management
The financial implications of High Tide's expansion through the addition of two new stores are multifaceted. The emphasis on occupying leases of previously operational cannabis stores suggests a cost-efficient strategy. By inheriting fully built-out locations, High Tide minimizes capital expenditure, conserves financial resources and accelerates store openings.
The company’s robust free cash flow is a positive indicator. Free cash flow is important as it represents the amount of cash a company generates after accounting for capital expenditures. This metric is often used to gauge a company's financial health and its ability to pursue growth opportunities without relying on external financing.
The planned addition of 20 to 30 new stores by the end of the calendar year underscores the company's growth ambitions. However, rapid expansion often comes with risks. Investors should monitor the balance between growth and financial stability, ensuring that the company's resources are not overstretched. Additionally, the integration of new stores and maintaining consistent operational standards across all locations will be key to sustaining long-term profitability.
High Tide's strategic expansion, combined with a disciplined financial approach, presents a potentially lucrative opportunity for shareholders, provided the company can navigate the inherent risks.
"I am pleased to announce the opening of two new Canna Cabana stores, one of which is our 175th location in
"With 14 new locations announced since the beginning of this year, we remain on target to reach our communicated goal of adding 20 to 30 new Cabanas by the end of this calendar year. Given our strong free cash flow profile, we plan to continue our brisk greenfield trajectory, which may be supplemented by additional M&A in the second half of this year. I'm excited about how our innovative discount club model is continuing to outperform our peers, and we are confident our market share will increase as our retail expansion picks up steam," 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 and is the second-largest cannabis retailer in
Bricks & Mortar Retail: Canna Cabana™ is the largest non-franchised cannabis retail chain in
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.
Brands: High Tide's industry-leading and consumer-facing brand roster includes Queen of Bud, Cabana Cannabis Co, Daily High Club, Vodka Glass, Puff Puff Pass, Dopezilla, Atomik, Silipipe, Evolution and more.
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 Brandz™ name.
High Tide consistently moves ahead of the currents, having been named one of
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.
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1 As reported by ATB Capital Markets based on store counts as of February 8, 2024 |
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 timing of our new locations beginning to sell recreational cannabis products and consumption accessories for adult use, the expected benefits of the store locations, our commitment to opening the number of future stores that we have communicated, and the expansion of our market share. 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.
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SOURCE High Tide Inc.
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