High Tide to Open Fourth Canna Cabana in Mississauga, Ontario

Rhea-AI Summary

High Tide Inc. announces the opening of its 167th Canna Cabana retail cannabis store in Mississauga, Ontario, marking the 58th in the province and the 4th in the city. The store is strategically located within a major retail power center and aims to cater to adult consumers with recreational cannabis products and accessories. CEO Raj Grover expresses excitement for continued growth and expansion, highlighting the company's innovative Cabana Club membership model and long-term market objectives.

Insights

Retail Market Analyst

The expansion of High Tide Inc.'s retail footprint with a new Canna Cabana store in Mississauga represents a strategic move to increase market presence in a competitive sector. The choice of location, within a major retail power center, is designed to maximize foot traffic from consumers already frequenting adjacent high-traffic retail establishments. The proximity to anchor tenants such as national grocery and bulk-food retailers could potentially boost cross-shopping opportunities, where consumers visit multiple stores in one trip, thus increasing the likelihood of incidental traffic to the new cannabis store.

Moreover, the company's target to reach 300 stores across Canada and achieve a 15% market share indicates an aggressive growth strategy. However, this ambition must be weighed against market saturation risks and regulatory changes that could impact the cannabis industry. The growth trajectory should also be evaluated in light of the company's operational efficiency and the scalability of its business model, particularly as it pertains to managing increased overhead with a larger number of retail locations.

Consumer Behavior Specialist

High Tide's focus on the Canna Cabana store's membership model, particularly the ELITE paid tier, suggests an emphasis on customer loyalty and retention strategies. The rapid growth of ELITE memberships indicates a successful adoption among consumers, which could be attributed to perceived value or exclusive benefits offered. The creation of a 'global cannabis community' through the consolidation of international customers into the membership base is an innovative approach to foster brand loyalty and increase customer lifetime value.

However, the effectiveness of these strategies in driving repeat business and sustainable revenue growth will depend on the continued appeal of membership benefits, the company's ability to innovate and adapt to consumer preferences and the competitive landscape of cannabis retail, which includes both physical stores and online platforms. The impact on consumer behavior and the company's bottom line will need to be monitored over time to assess the long-term viability of the membership model.

Financial Analyst

The announcement of a new store opening is a positive development for High Tide Inc., as it may contribute to revenue growth and market share expansion. Investors should monitor the company's quarterly financials to assess the impact of new store openings on overall sales, profit margins and operational costs. The initial costs associated with establishing new retail locations, including leasing, staffing and marketing, will need to be offset by sales performance to ensure a positive return on investment.

Additionally, the company's long-term objective of achieving a 15% market share will require a detailed analysis of market trends, competitive dynamics and consumer spending patterns. The cannabis industry is subject to fluctuations in regulatory environments and consumer sentiment, which can significantly affect market opportunities. Therefore, it is critical for investors to consider the broader economic and regulatory context when evaluating High Tide's growth prospects.

CALGARY, AB, March 26, 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 925 Rathburn Rd East, Mississauga, Ontario will begin selling recreational cannabis products and consumption accessories for adult use on Thursday, March 28. This opening will mark High Tide's 167th Canna Cabana branded cannabis retail location in Canada, the 58th in the province of Ontario and the 4th in Mississauga.

This brand-new Canna Cabana is nestled within a major retail power center and is surrounded by strong anchor tenants, including a national grocery retailer, Canada's largest bulk-food retailer, and several quick-serve restaurants. Situated close to well-travelled roadways, this Canna Cabana will benefit from the many residents who come through this plaza to run their daily errands and will welcome new and existing ELITE and Cabana Club members.

"I am thrilled to announce another Canna Cabana opening in Mississauga in rapid succession. This Tomken store is another example of our thoughtful real estate strategy, where we strategically locate our stores in these retail power centers surrounded by major national anchor tenants. The coming months are brimming with more exciting Canna Cabana store openings as we look to continue our growth trajectory in Mississauga and beyond, eventually reaching 300 stores across Canada and our long-term objective to achieve 15% market share in the provinces where we operate," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"Growth and innovation are in our DNA. Our Cabana Club is the first-of-its-kind discount club model in North America, which features ELITE as our paid membership tier. ELITE upgrades have been growing at their fastest pace to date, with Canna Cabana quickly becoming a household name in Canada. Our goal is to extend the reach of our Cabana Club into a global cannabis community by consolidating our 5 million plus international customers and bringing them all together into our rapidly growing membership base," 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 North America 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 non-franchised cannabis retail chain in Canada, with 167 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and growing. In 2021, Canna Cabana became the first cannabis discount club retailer in North America.

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.

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.

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

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 the 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, our commitment to opening future stores in prime power centre locations and the expansion of our discount club model, our ability to reach our stated goals of 300 stores and 15% market share, and our ability to extend our Cabana Club into a global cannabis community and to consolidate our international customers. 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.

CONTACT INFORMATION

Media Inquiries
Omar Khan
Chief Communications and Public Affairs Officer
High Tide Inc.
omar@hightideinc.com
403-770-3080

Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
High Tide Inc.
vahan@hightideinc.com

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SOURCE High Tide Inc.

FAQ

When will the Canna Cabana store in Mississauga start selling recreational cannabis products?

The Canna Cabana store in Mississauga will begin selling recreational cannabis products and consumption accessories for adult use on Thursday, March 28.

How many Canna Cabana branded cannabis retail locations does High Tide currently have in Canada?

High Tide currently has 167 Canna Cabana branded cannabis retail locations in Canada.

What is the long-term market objective of High Tide in terms of market share?

High Tide aims to achieve a 15% market share in the provinces where it operates.

What is unique about High Tide's Cabana Club membership model?

High Tide's Cabana Club features ELITE as a paid membership tier and aims to create a global cannabis community with its growing membership base.