High Tide Surpasses 1.5 Million Cabana Club Members

Rhea-AI Summary

High Tide Inc. (Nasdaq: HITI) has reached a significant milestone with its Cabana Club loyalty program surpassing 1.5 million members across Canada. The membership has grown by 5% since June 13, 2024, representing an annual growth rate of 37%. Since launching its innovative discount club model in October 2021, the program has seen a 400% increase in membership.

The company has also announced the opening of a new Canna Cabana store in Belleville, Ontario. This marks High Tide's 181st Canna Cabana location in Canada, and the 66th in Ontario. The new store is strategically located in a high-volume shopping plaza, serving a population of over 30,000 within a three-kilometer radius.

Positive

• Cabana Club loyalty program surpassed 1.5 million members, growing 5% since June 13, 2024
• Annual growth rate of 37% for Cabana Club membership
• 400% increase in loyalty program membership since October 2021
• Canna Cabana store network generated over 111% growth in same store sales since launching the discount club model
• Opened 181st Canna Cabana store in Canada, 66th in Ontario

Negative

• None.

Market Research Analyst

The surpassing of 1.5 million Cabana Club members is a significant milestone for High Tide, indicating strong customer loyalty and brand traction. The 5% membership increase since June and 37% annual growth rate demonstrate robust momentum. The over 400% increase since launching the discount club model in October 2021 suggests this strategy is highly effective in attracting and retaining customers.

The 111% growth in same-store sales since the discount club model launch is particularly impressive, showing that the loyalty program is driving substantial revenue increases. This could translate to improved profitability if margins are maintained. The company's goal of reaching 300 locations across Canada and potentially 2 million members indicates significant room for growth, which could further boost market share and revenues.

Financial Analyst

High Tide's expansion strategy appears sound, with the new Belleville store marking their 181st location in Canada and 66th in Ontario. The company's focus on underserved communities and high-traffic areas could drive foot traffic and sales. However, investors should note that rapid expansion can strain resources and increase operational costs in the short term.

The company's long-term goal of 150 locations in Ontario suggests significant investment in Canada's largest cannabis market. While this could lead to increased market share and revenues, it's important to monitor the impact on profitability and cash flow. The discount club model's success in driving same-store sales growth is promising, but margins should be closely watched to ensure the strategy remains financially viable in the long run.

The Company Also Announces the Opening of a New Canna Cabana Store in Belleville, Ontario

CALGARY, AB, Aug. 8, 2024 /PRNewswire/ - 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, announced today that its Cabana Club loyalty program has surpassed 1.5 million members across Canada.  Membership has increased 5% since June 13, 2024, when the Company reported Q2 2024 results. This represents an annual growth rate of 37%. More than 1.2 million members have joined the loyalty program since the Company unveiled its innovative discount club model in October 2021, an increase of more than 400% since its launch.

"I am thrilled that our first-of-its-kind discount club model in cannabis has grown by more than 400% in just a few short years.  This rapid surge in loyalty has resulted in our Canna Cabana store network generating more than 111% growth in same store sales since the launch of the discount club model. With our long-term goal of reaching at least 300 locations across Canada we believe our Cabana Club membership trajectory will keep growing to beyond 2 million members in the months and years to come," said Raj Grover, Chief Founder and Chief Executive Officer of High Tide.

New Belleville Store

The Canna Cabana retail cannabis store located at 150 Sidney Street, in Belleville, Ontario will begin selling recreational cannabis products and consumption accessories for adult use today. This opening will mark High Tide's 181st Canna Cabana branded retail cannabis location in Canada, the 66th in Ontario and the first store in Belleville.  

Belleville is located on the Bay of Quinte, along the northern shore of Lake Ontario. In between Toronto and Ottawa, Belleville is a short drive from the internationally renowned Prince Edward County, with sandy beaches and award-winning wineries. This new Canna Cabana location will be one of the first cannabis stores in the southwest end of the city, with nearly exclusive access to over 30,000 residents within a three-kilometer radius. Anchor tenants of this high-volume shopping plaza include a major North American discount retailer, a large Canadian pharmacy chain and several quick service restaurants.

"I am pleased to announce the opening of our first Cabana in Belleville, as we continue to selectively and strategically expand our innovative discount club model into underserved communities.  The Ontario cannabis market, the largest in Canada, holds great potential for the future expansion of our Canna Cabana brand as we continue building towards our goal of 150 locations across the province. Our focus will always be to offer an unbeatable selection and prices to communities across Ontario and beyond," 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 globally by store count¹. 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 cannabis retail chain in Canada, with 181 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and growing. In 2021, Canna Cabana became the first cannabis discount club retailer in the world.

Retail Innovation: Fastendr™ is a unique and fully automated technology that employs retail kiosks to facilitate a better buying experience through browsing, ordering and pickup.

Consumption Accessories: High Tide operates a suite of leading accessory e-commerce platforms 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, Hue, 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 Canada's Top Growing Companies in 2021, 2022 and 2023 by the Globe and Mail's Report on Business Magazine, and was named as one of the top 10 performing diversified industries stocks in both 2022 and 2024 TSX Venture 50. High Tide was also 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 timing of our new locations beginning to sell recreational cannabis products and consumption accessories for adult use, the expected benefits of the store locations, the expansion of our discount club model, the ability to reach our communicated goals of reaching 300 locations in Canada, 150 locations in Ontario, and 2 million members. 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.

________________________ 1 As reported by ATB Capital Markets based on store counts as of February 8, 2024

View original content to download multimedia:https://www.prnewswire.com/news-releases/high-tide-surpasses-1-5-million-cabana-club-members-302217077.html

SOURCE High Tide Inc.

FAQ

How many members does High Tide's Cabana Club loyalty program have as of August 2024?

As of August 8, 2024, High Tide's Cabana Club loyalty program has surpassed 1.5 million members across Canada.

What is the annual growth rate of High Tide's (HITI) Cabana Club membership?

The annual growth rate of High Tide's Cabana Club membership is 37%.

How many Canna Cabana stores does High Tide (HITI) operate in Canada as of August 2024?

As of August 8, 2024, High Tide operates 181 Canna Cabana branded retail cannabis locations in Canada.

Where did High Tide (HITI) open its newest Canna Cabana store in August 2024?

High Tide opened its newest Canna Cabana store in Belleville, Ontario, located at 150 Sidney Street.