High Tide Increases Alberta Empire to 19 Stores

Canadian cannabis retailer High Tide Inc. [stock_market_widget type="inline" template="generic" color="default" assets="HITI.CN" markup="(CSE: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] now has 19 stores across Alberta after opening new sites in Calgary and Vegreville today.

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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The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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