Today Rich is broadcasting from the studio to talk to you about High Tide Inc. (CSE:HITI) (OTCQB:HITIF) (Frankfurt: 2LY). He discusses the cannabis company’s bona fides including its franchising plans, its history and corporate structure, and its plans for revenue. Find out what makes High Tide so unique in the cannabis sector by following along below.
High Tide is Making Waves
Based in Alberta, High Tide is a vertically-integrated, downstream, retail-focused cannabis corporation with a ten years head start on the industry. It has around 173 employees, total assets of around $47.7 million, and a total revenue of $15.9 million. High Tide is also laudable for being the only cannabis company to manufacture and design thousands of its own smoking accessories and cannabis lifestyle products.
Rich says that, despite the company’s longevity, very few people outside of Alberta know that High Tide exists yet. This could make it a great buying opportunity for investors, especially when the company has enjoyed the backing of some major cannabis players like Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB).
As both an operator and a franchiser, the company plans on making strategic investments to expand and strengthen its integrated value chain while providing complete customer experience. It will also ensure that shareholder value is being maximized. High Tide’s diverse portfolio includes RGR Canada Inc., Famous Brandz Inc., Kush West Distribution Inc., Smoker’s Corner Ltd., Grasscity.com, Canna Cabana Inc. and the majority of KushBar Inc.
“I haven’t see too many companies focused on franchising,” explains Rich. “It’s really interesting and I think it separates High Tide from a lot of other licensed producers in the sector.”
Since receiving some additional cannabis product deliveries from Alberta Gaming, Liquor and Cannabis, High Tide now owns 12 retail stores in Alberta under the Canna Cabana brand.
The Canna Cabana brand is marketed as Canada’s “one stop shop for cannabis.” High Tide has ensured that the brand focuses on premiere customer service and offers industry-leading employee training.
“Canna Cabana is positioned to become Canada’s largest retail cannabis network,” explains Rich. “They have absolutely beautiful stores … very colorful, very sleek, beautiful, professional looking stores.”
In addition to the Alberta locations, Canna Cabana is also present in Ontario through three retail locations. In Saskatchewan the brand offers one corporate store and e-commerce site, with another under construction in Manitoba. Of note, Saskatchewan is the only province where citizens can buy cannabis online with absolutely no government intervention. It’s for this reason that Canna Cabana sells online in Saskatchewan.
“Maximizing the Canna Cabana retail experience in Alberta as Canada’s leading retail cannabis jurisdiction is a great opportunity for our customers, stakeholders, and shareholders alike,” said Raj Grover, President and Chief Executive Officer of High Tide, in a recent press release.
Company Structure and History
High Tide has 250,600,020 fully diluted shares outstanding and 255 million fully diluted warrants and options. Its average daily volume sits at around 583,000 shares. The company has not been public long, so the charts don’t look the strongest. Its highest price was $0.63 and it is currently trading in Canada at $0.29, which Rich notes is potentially a great buying opportunity.
The company structure is in two segments: retail, which is the larger segment, and wholesale, which is continuing to grow. The designing and manufacturing of cannabis accessories is done on the wholesale side of the business, and then those accessories go on sale in the retail side.
In addition to Canna Cabana, High Tide also has retail locations across Canada under the Kush Bar, Grasscity, and Smoker’s Corner brands.
Rich Picks High Tide
All of the company’s open stores are currently generating revenue, and it expects to be revenue positive before the end of next year.
“I think [High Tide’s] goals are very realistic and that they’re on the right track,” says Rich. “This is a company that may be very under-valued, under-appreciated, and under-exposed. And that’s what we do for you at RichTV Live, we try to bring you stocks at the bottom, before they explode. You want to buy low and sell high, and right now High Tide is very close to the bottom.
What do you think? Has Rich picked another pot stock winner in High Tide? Let us know down below, and don’t forget to check out some of his other videos including his run down of the cannabis industry news that you need to know this week.
Featured image: High Tide