The Alberta-based, retail-focused High Tide Inc. (CSE:HITI) (OTCQB:HITIF) is a perennial favorite of Rich’s. Earlier this month, he profiled the company’s plans to become a retail leader with the help of a $10 million credit facility.
Back then, the company was at a record low of $0.16. The funding helped kick the stock into high gear, though, rising to $0.24 in one day. Now HITI shares are trading at $0.21 but, with some more big news just announced, how long will they stay at that price?
“I would definitely put these guys on your watchlist,” says Rich. “It’s going to be interesting to see how this news affects the market. I believe they’re going to go back up.”
High Tide Acquires Top Performing Retail Cannabis Store
Yesterday, the company announced that it completed the acquisition of a Canna Cabana store in Hamilton, Ontario.
The Hamilton store is one of a limited number of premier cannabis retail locations operating in the province. Ontario is still in the midst of opening up its cannabis market, so the Canna Cabana store represents an important foot in the door.
The acquisition also marks High Tide’s first step towards positioning itself in all three Canna Cabana locations across Ontario. It also provides the company with a revenue stream, as the Hamilton store has unaudited gross sales exceeding $14 million since it opened in April last year.
“Canna Cabana is a revenue-generating asset,” Rich explains. “High Tide is using its stock to acquire its growth. This is what every public company in the sector should be doing.”
Discussing the acquisition, High Tide’s President and Chief Executive Officer, Raj Grover, said:
“High Tide is excited to add the Hamilton store to its corporately-owned portfolio of stores, with its large and loyal customer base and top-tier financial performance. Over the coming year, we look forward to growing our presence in the Ontario market and reaching the maximum of 10 stores per operator as quickly as possible.”
Ontario is Canada’s most populous province, making it also the nation’s biggest cannabis market.
High Tide’s Strong Retail Position
From its origins in 2009, HITI has expanded its retail presence far and wide. It has also grown its portfolio of brands so that High Tide accessories are now sold in 3,000 stores in over 20 countries worldwide.
As of November, High Tide Inc. owns 30 retail locations across Canada. Of these, 26 are in Alberta, one is in Saskatchewan, and three are in Ontario.
In addition to its Canna Cabana holdings, the company also owns KushBar Inc., with two operating stores in Alberta. It also runs Grasscity.com, the world’s preeminent and most searchable online retailer of smoking accessories and cannabis lifestyle products, with approximately 5.8 million site visits annually.
Additionally, Famous Brandz Inc. is a dominant manufacturer of licensed lifestyle accessories. It enjoys partnerships with celebrities and entertainment companies, including Snoop Dogg and Paramount Pictures. Famous Brandz’ products are sold to wholesalers and retailers around the world.
In February 2019, Aurora Cannabis (TSX:ACB) (NYSE:ACB) invested $10 million into High Tide. Then, in April, Aphria Inc. (TSX:APHA) (NYSE:APHA) anchored the company’s non-brokered private placement with a $4.5 million order.
“High Tide’s got two of the biggest players in the cannabis world investing,” says Rich. “Why? Because they see the value.”
Keep watching RichTV Live for more updates from this and other exciting cannabis companies.
Featured image: DepositPhotos © EpicStockMedia