High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (September 2020)
23 slides from High Tide's investor presentation, Sep 1, 2020
Slide 1: Investor Presentation September 2020
INVESTOR PRESENTATION SEPTEMBER 2020 Over 10 Years in Business Consumer-Oriented Cannabis Enterprise Retail-Focused Growth Initiatives
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER F O R W A R D - L O O K I N G S TAT E M E N T S This presentation does not constitute an “offering memorandum” capital and operating costs, and all economic analysis derived economic conditions and proposed courses of action, based on by High Tide Inc. (“High Tide” or the “Company”) as su
Slide 3: Company Snapshot
C O M PA N Y S N AP S H O T High Tide is an Alberta-based, vertically integrated and retail focused cannabis corporation: Stock Symbols CSE:HITI | OTC:HITIF | FRA:2LY RETAIL SEGMENT: Share Price1 $0.17 • Over 10 years focused on the cannabis consumer 1 Average Daily Volume2 709,866 • 34 Canna Cabana
Slide 4: Recent Financial Highlights (in thousands of CAD)
R E C E N T F I N A N C I A L H I G H L I G HT S ( I N T H O U S A N D S O F C A D ) Fiscal 2018 3Q19 4Q19 1Q20 2Q20 Summary Income Statement (Audited) (Audited) (Audited) (Unaudited) (Unaudited) In 2Q20, HITI became the Revenue $8,749 $8,288 $11,409 $13,659 $19,572 first Canadian public cannabis re
Slide 5: Established in All Downstream Markets
E S TA B L I S H E D I N A L L D O W N S T R E A M M A R KE T S 1 0 + Y E A R S O F O P E R AT I O N S ; 6 V E R T I C A L LY - I N T E G R AT E D B U S I N E S S E S B R I C K S & M O R TA R ONLINE CANNABIS A C C E S S O R I E S O N LY CBD FOCUSED & ACCESSORIES RETAIL One of Canada’s largest Locati
Slide 6: Vision, Strategy, Goals
VISION To provide the full spectrum of best-in-class products and services for cannabis consumers, while growing organically and through acquisitions, to become the world’s premier retail-focused and vertically-integrated enterprise S T R AT E G Y D I F F E R E N T I AT I O N ACCRETIVE GROWTH CONTIN
Slide 7: Timeline of Milestones
T I M E L I N E O F M I L E S TO N E S 34 Current Locations Growth to 3 Growth to 7 1st Franchised Smoker’s Corner Smoker’s Corner Smoker’s Corner Listed as HITI on Locations Locations Location Founded Dec. 17, 2018 Founded KushBar 2009 2012 2015 2018 Co-founded 2019 2020 Acquired remaining Acquired
Slide 8: Recent Corporate Highlights
RECENT CORPORATE HIGHLIGHTS September 1, 2020 August 21, 2020 August 7, 2020 High Tide and Halo Announce Amended High Tide to Combine with Meta Growth High Tide Opening Canna Cabana in Terms on Sale of KushBar Assets to Halo Corp., Creating the Largest Cannabis Popular, Year-Round Tourist Destinatio
Slide 9: Transaction Rationale
T R A NS AC T I O N RAT I O N AL E OPERATIONAL METRICS (COMBINED PRO FORMA) FINANCIAL METRICS (COMBINED PRO FORMA) 63 115 $133M 35% Store Count(1) Store Count Revenue Gross Margin Current (Dec-21) (Last Quarter Annualized) (Last Quarter Annualized) • Creates Canada’s largest • Growth plans include n
Slide 10: Transaction Summary
T R A NS AC T I O N S U MM A RY • High Tide to acquire all of the issued and outstanding common shares of Meta Growth (the “Transaction”) Proposed • Court approved statutory plan of arrangement Transaction • Pro forma ownership of 54.375% for High Tide and 45.625% for Meta Growth (on an as converted
Slide 11: The Rising Tide of Cannabis Retail
T H E RI S I N G T I D E O F C A NN A B I S R E TA I L C A N N A B I S M A R K E T S I Z E Multi-billion market in Canadian cannabis consumption1 $4.1 Billion in 2021 MANUFACTURING & WHOLESALE DISTRIBUTION R E TAI L EXPERIENCED. WELL POSITIONED. EXECUTING ON GROWTH. The biggest opportunity in Canadi
Slide 12: Canna Cabana
RETAIL C A N NA C A BA N A B E C O M I N G C A N A D A ’ S L A R G E S T R E TA I L C A N N A B I S N E T W O R K Canada’s One-Stop Cannabis Shop • 34 locations now open in the provinces of Alberta, Ontario & Saskatchewan Current & Projected • Highest average rating by independent Store Counts custo
Slide 13: KushBar
RETAIL K u s h Ba r S E C O N D R E TA I L C A N N A B I S B U S I N E S S : M O D E R N – O P E N – R E L A X E D First locations opened in Alberta in September & October 2019 Third location opened in May 2020 As at Aug. Current 2020 Stores Open Permits Leases AB 3 3 3 ON 0 0 5 Total 3 3 8 13
Slide 14: Grasscity
RETAIL G RA S S CI T Y WORLD’S BEST KNOWN ONLINE HEAD SHOP World’s top accessories Large U.S. Customer Base Forums & Social Media e-retailer • 20-year history as online store • Visitors: 76% United States; 9% • Over 34 million unique users in • 23.6 million site visits expected in 2020 United Kingdo
Slide 15: Grasscity – A Strong Strategic Fit
RETAIL G RA S S CI T Y – A S T R O NG S T R AT E G I C F I T & MAN UFAC TU R I N G DISTRIBUTION R E TA I L • Design & Production • Optimized Logistics; ship from • Established Online • Brand Licensing North America to local • SEO & Social Media customers • Multiple Warehouses Margin expansion throug
Slide 16: RGR Canada
WHOLESALE R G R C AN A D A Distribution network Manufacturing contracts 10 Years >5,000 SKUs extends from our with industry leading Experience in the design Extensive product 27,000 sq. ft. facility in factories in China, the and branding of cannabis catalog with 75% Calgary, AB United States and th
Slide 17: Famous Brandz
WHOLESALE First to secure licenses from movie studios, FA M O U S BR A N D Z musicians and other celebrities for smoking accessories CELEBRITY LICENSES: • Snoop Dogg Pounds • Cheech & Chong’s Up in Smoke • Trailer Park Boys • Kevin Smith • Guns N’ Roses • Hellboy • The Beach Bum • Radio Days • The F
Slide 18: Famous Brandz: Our Products
WHOLESALE FAMOUS BRANDZ FAM@US SNOOP DOGG POUNDS" OUR PRODUCTS
Slide 19: Strategic Partners
S T R AT E G I C PA RT N E R S N O TA B L E I N V E S T O R S : LEGAL: FINANCE: AUDITOR: S E C U R I T Y: T E C H N O L O G Y: G RO W T H B Y A C Q U I S I T I O N Goal of growing the business by acquisition, domestically as well as in the US and EU, through various channels: Industry partnerships a
Slide 20: Management Team, Board of Directors, Advisors
BOARD OF MANAGEMENT TEAM DIRECTORS ADVISORS Secretary-Treasurer Raj Grover Raj Grover Founder, President & Executive Chairman Shimmy Posen Chief Executive Officer Partner, Garfinkle Biderman LLP Nader Ben Aissa External Legal Counsel Rahim Kanji, MBA, CPA, CA Strategic Advisors Chief Financial Offic
Slide 21: Shares Outstanding
S H A R E S O U TS TA N D I N G As at Share Capitalization Table August 31, 2020 Common Shares - Issued and Outstanding 238,232,132 Potential Shares from Stock Options1 9,510,000 Potential Shares from Exercise of Warrants2 109,873,310 Potential Shares from Conversion of Unsecured Debentures3 42,673,
Slide 22: Why Invest?
WHY INVEST? COMPELLING INVESTMENT OPPORTUNITY IN A R E TA I L - F O C U S E D C A N N A B I S L E A D E R The perspective of a manufacturer, Strong wholesale and retail infrastructure distributor and retailer on the hottest with a focus on sustainable growth across cannabis products and accessories.
Slide 23: Raj Grover, Founder, President, CEO & Chairman
Raj Grover High Tide Inc. Founder, President, 11127 15th St. NE CEO & Chairman Unit #112 raj@hightideinc.com Calgary, AB T3K 2M4 (403) 265-4207 1.888.9.420.420 ir@HighTideInc.com HighTideInc.com 23