High Tide to Open 185th Canna Cabana Location

Rhea-AI Summary

High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) has announced the opening of its 185th Canna Cabana retail cannabis store in Canada. The new location, situated at 3406 Dundas Street W, Toronto, Ontario, will begin operations on Sunday, October 13. This marks the company's 71st store in Ontario and 11th in Toronto.

The new store is located in the Runnymede neighborhood, an area with a population density exceeding 150,000 residents within a three-kilometer radius. It is part of a retail shopping plaza anchored by a national grocery chain and other local businesses.

Raj Grover, Founder and CEO of High Tide, expressed pride in the company's rapid expansion, especially in light of competitors facing financial difficulties. He also emphasized the company's focus on organic growth and its robust construction pipeline for future store openings throughout 2024 and into 2025.

Positive

• Expansion of retail presence with 185th Canna Cabana store opening
• Strategic location in a densely populated area with 150,000+ residents within 3km
• Continued organic growth despite industry challenges
• Robust construction pipeline for future store openings

Negative

• None.

Insights

Financial Analyst

The opening of High Tide's 185th Canna Cabana location represents a significant milestone in the company's expansion strategy. This growth is particularly noteworthy given the challenging landscape where competitors have faced financial difficulties. The new store's location in a densely populated area of Toronto, with over 150,000 residents within a three-kilometer radius, suggests strong potential for customer traffic and revenue generation.

However, investors should consider that while store expansion is generally positive, it's important to evaluate the profitability per store and overall financial health of the company. The aggressive expansion strategy could lead to increased operational costs in the short term. The company's ability to maintain profitability while scaling will be a key factor to watch.

Long-term, this expansion strengthens High Tide's market position in Canada's cannabis retail sector. The company's focus on "tactically selected and established locations" indicates a strategic approach to growth, which could lead to improved market share and potentially higher revenues. Investors should monitor upcoming financial reports to assess the impact of this expansion on the company's bottom line.

Market Research Analyst

High Tide's strategic placement of its 185th store in a mature, established neighborhood with high population density is a smart move. The location in a retail plaza anchored by a national grocery chain suggests potential for steady foot traffic and cross-shopping opportunities. This aligns well with consumer behavior trends in the cannabis retail sector.

The timing of this opening, just before the sixth anniversary of Canadian cannabis legalization, is symbolically significant. It demonstrates High Tide's resilience and growth in a market that has seen some major players struggle. This could potentially boost investor confidence in the company's business model and execution capabilities.

Looking ahead, the company's mention of a "robust construction pipeline" indicates continued aggressive expansion plans. While this suggests confidence in the market's growth potential, investors should be mindful of potential market saturation risks, especially in urban areas. The success of this expansion strategy will largely depend on High Tide's ability to differentiate its Canna Cabana brand and maintain strong per-store performance metrics.

CALGARY, AB, Oct. 10, 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 Canna Cabana retail cannabis store located at 3406 Dundas Street W, Toronto, Ontario will begin selling recreational cannabis products and consumption accessories for adult use on Sunday, October 13. This opening will mark High Tide's 185th Canna Cabana branded retail cannabis location in Canada, the 71st in the province of Ontario and the 11th in the city of Toronto.  

The new Dundas Street Canna Cabana opens in the west end of Toronto, in the mature and established neighbourhood of Runnymede with a three-kilometer population density exceeding 150,000 residents. This new store is situated in a retail shopping plaza anchored by a national grocery chain and several other locally owned businesses.

"I am thrilled to announce the opening of our 185th Canna Cabana location in Canada. We achieved this significant milestone just days before the sixth anniversary of Canadian cannabis legalization. I am so proud of what our team has been able to accomplish in such a short time, especially when some of our largest competitors have filed for CCAA or closed their doors completely," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"As previously communicated, we remain focused on rapidly expanding our store network organically across Canada. Our team has been active in sourcing new store sites in tactically selected and established locations in line with our real estate strategy. Our construction pipeline is robust, with many more high-quality sites like Dundas to be launched throughout this calendar year and into 2025," 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 185 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.

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

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 by the Globe and Mail's Report on Business in 2024 for the fourth consecutive year 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 location beginning to sell recreational cannabis products and consumption accessories for adult use, the expected benefits of the store location, and our commitment to rapidly expanding, launching more sites in 2025 and beyond, and the expansion of our discount club model. 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.

FAQ

When will High Tide's 185th Canna Cabana store open in Toronto?

High Tide's 185th Canna Cabana store, located at 3406 Dundas Street W, Toronto, Ontario, will open on Sunday, October 13, 2024.

How many Canna Cabana stores does High Tide (HITI) have in Ontario?

With this new opening, High Tide (HITI) will have 71 Canna Cabana stores in the province of Ontario.

What is the population density around the new Canna Cabana store on Dundas Street?

The new Canna Cabana store on Dundas Street is located in an area with a population density exceeding 150,000 residents within a three-kilometer radius.

What are High Tide's (HITI) expansion plans for Canna Cabana stores in 2024 and 2025?

High Tide (HITI) has a robust construction pipeline and plans to launch many more high-quality store sites throughout 2024 and into 2025, focusing on rapid organic expansion across Canada.