Canadian cannabis retailer High Tide Inc.
It has been busy since Alberta Gaming Liquor Cannabis lifted a moratorium on new retail applications in May 2019. There are now more than 250 stores across the province and High Tide accounts for 19 of them.
The firm now has 23 branded Canna Cabana stores in Canada after the outlets Calgary and Vegreville opened their doors. It expects that tally to reach 25 by the middle of the month, as its next Canna Cabana site is already licensed and on the verge of opening, while a KushBar location will also be launched in the coming weeks.
“With every new store we are solidifying Canna Cabana as Canada’s favourite retail cannabis brand, which is becoming clear from our top-ranked customer reviews,” said Ray Grover, president and chief executive at High Tide.
Each company’s market share cannot exceed 15% in Alberta’s cannabis retail industry, and High Tide is on course to reach that maximum soon. Outside of Alberta, it has one store in Saskatchewan and three branded locations in Ontario.
It is vying with the likes of Fire & Flower and Westleaf to become the leading cannabis retailer in Canada.
The last reported financials from High Tide cover the three months to April 30, 2019, and they showed that year-on-year revenue increased 325% to $6.6 million. Net loss for the six months to April 30 stood at $7.1 million and it is burning cash due to start-up costs, rent, and professional fees.
It has just secured a $2 million loan from an arm’s length third party, bearing an interest rate of 12% and a term to maturity of one year. The lender will also receive 1.6 million warrants with an exercise price of $0.85 per share. The arm’s length consultant will be granted a further 300,000 warrants at an exercisable price of $0.38 per share in exchange for assisting on “corporate and business development initiatives”.
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