High Tide Continues Growth and Secures Key Talent
The TDR Three Key Takeaways: High Tide Continues Growth and Secures Talent
- High Tide has opened four new Canna Cabana stores, extending its reach in Alberta and Ontario.
- These new openings increase the number of Canna Cabana locations in Canada to 180, with 65 in Ontario.
- High Tide is securing talent by granting stock options to employees, demonstrating a commitment to growth and retention.
High Tide Inc. (NASDAQ: HITI, TSXV: HITI) has further expanded its position as a dominant cannabis retailer in Canada by opening four new Canna Cabana stores. The new stores are located in Calgary (Douglasdale and Brentwood), Ottawa, and Stoney Creek. These stores expand High Tide’s footprint to 180 locations nationwide, including 65 in Ontario.
High Tide also announced its focus on securing and retaining top talent. The company has granted 204,000 incentive stock options to various employees, consultants, and management. Each option is exercisable at the closing price of the company’s common shares on the TSX Venture Exchange, based on the last trading day immediately before the press release. The decision is wise from an employee alignment and engagement point of view. High Tide’s commitment to attracting and retaining key personnel will support its continued growth.
In Alberta, the Douglasdale store is set in a mature, well-established neighborhood with over 40,000 residents within a three-kilometer radius. This store benefits from high visibility and an existing customer base from its previous retail cannabis operation. The Brentwood store, located in a bustling shopping plaza near the University of Calgary, serves a population of over 56,000 within a three-kilometer radius and occupies a space previously leased by FOUR20 Cannabis.
In Ontario, the Walkley Road store is the fifth Canna Cabana in Ottawa. It is strategically placed in a large shopping plaza along a major roadway, surrounded by national retail chains and serving a dense population of over 180,000 within a five-kilometer radius. The Stoney Creek store, the first in this Hamilton suburb, is situated in a major power center with a mix of internationally recognized retailers and serves over 100,000 residents within a five-kilometer radius.
Raj Grover, Founder and Chief Executive Officer of High Tide, expressed his enthusiasm for this expansion: “I can’t think of a better way to end our third fiscal quarter than by announcing the opening of four new Canna Cabanas, bringing our ever-expanding store count to 180 across Canada and 65 in Ontario. Many of these new stores are part of our organic expansion strategy, which includes onboarding proven locations previously run by competitors through lease takeovers, resulting in minimal store buildout costs. Since January 1, we have already added 18 new Cabanas to our retail portfolio and are confident that we will meet or exceed our previously communicated goal of adding 20 to 30 new locations this year.”
Grover also highlighted the financial prudence behind this growth: “Furthermore, I am thrilled that the majority of this growth has been funded through our strong free cash flow generation from current operations. This approach will propel our future organic growth which should help us continue an upward trajectory both in terms of our store count, but also with respect to overall Canadian retail market share.”
High Tide last released its financial results for Q2 2024 on June 13th, 2024. The earnings were strong, and they also announced arranging for debt financing to assist with additional growth. The next earnings release has yet to be announced but likely will be around September 13th, 2024. Wall Street analysts currently target the total FY 2024 revenue to be $373M USD.
