High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (January 2021)
23 slides from High Tide's investor presentation, January 2021
Slide 1: Investor Presentation January 2021
INVESTOR PRESENTATION JANUARY 2021 Over 10 Years in Business Consumer-Oriented Cannabis Enterprise Retail-Focused Growth Initiatives
Slide 2: Disclaimer
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 a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories: Stock Symbols TSXV:HITI | OTC:HITIF | FRA:2LY Share Price1 $0.27 RETAIL SEGMENT: Average Daily Volume2 2,131,039 • Over 10 years focused on the ca
Slide 4: Recent Financial Highlights
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 4Q19 1Q20 2Q20 3Q20 Summary Income Statement (Audited) (Audited) (Unaudited) (Unaudited) (Unaudited) In 2Q20, HITI became the Revenue $8,749 $11,409 $13,659 $19,572 $23,204 first Canadian public cannabis
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 ; 2 V E R T I C A L LY - I N T E G R AT E D S E G M E N T S B R I C K S & M O R TA R ONLINE CANNABIS & ACCESSORIES A C C E S S O R I E S O N LY CBD FOCUSED RETAIL Canada’s largest recreational cann
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 Founded Listed as Listed as HITI on HITI on Founded Dec. 17, 2018 Nov. 19, 2020 Founded KushBar Co-founded 2009 2012 2018 2019 2020 Acquired Invested $4.5 MM Acquired Co-founded 67 Branded Retail Founded Cannabis Stores Founded Invested $10 MM across Canada 7
Slide 8: Recent Corporate Highlights
RECENT CORPORATE HIGHLIGHTS January 7, 2021 January 4, 2021 December 9, 2020 High Tide Extends Maturity Date and High Tide Appoints Retail Industry Veteran High Tide Announces Application to List Reduces Interest Cost of $20 Million Andrea Elliott as Independent Director on Nasdaq as the first in it
Slide 9: 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 10: 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: • 32 locations now open in the provinces of Alberta, Ontario & Saskatchewan Current & Projected • Highest average rating by independent Store Counts cust
Slide 11: NewLeaf Cannabis & Meta Cannabis Co.
RETAIL N E W L E A F C AN N A B I S & M E TA C AN N A B I S C O . A C Q U I R E D A S PA R T O F M E TA G R O W T H I N N O V E M B E R 2 0 2 0 Current & Projected Store Counts As at Jan. NewLeaf META Total Stores Target Number of 2021 Cannabis Cannabis Co. Open Stores AB 19 0 19 Share of 42 ON 0 52
Slide 12: Transaction Rationale
RETAIL T R A NS AC T I O N R AT I O N AL E OPERATIONAL METRICS (COMBINED PRO-FORMA) FINANCIAL METRICS (COMBINED PRO-FORMA) 62 115 $148M 38% Store Count(1) Store Count Revenue Gross Margin (as at Sep-20) (target Dec-21) (Last Quarter Annualized) (Last Quarter Annualized) • Creates Canada’s largest •
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 Current Dec. 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 through
Slide 16: Valiant Distribution
WHOLESALE VA L I A N T DI S T R I B U T I O N 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 U
Slide 17: Wholesale: Celebrity Licenses
WHOLESALE First to secure licenses from movie studios, musicians and other celebrities for consumption 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 Fabulous Furry Frea
Slide 18: Wholesale – Our Products
WHOLESALE SNOOP DOGG 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 Andrea Elliott EVP Direct to Consumer, Moose Knuckles Canada Rahim Kanji Strategic Advisors Chief Financi
Slide 21: Shares Outstanding
S H A R E S O U TS TA N D I N G As at “HITI” LISTED ON Share Capitalization Table January 15, 2021 Common Shares - Issued and Outstanding 449,371,660 Potential Shares from Stock Options1 24,843,280 Potential Shares from Exercise of Warrants2 157,133,157 Potential Shares from Conversion of Unsecured
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