High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (May 2021)
25 slides from High Tide's investor presentation, May 10, 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION MAY 2021 Over 10 Years in Business Consumer-Oriented Cannabis Enterprise Retail-Focused Growth Initiatives
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation does not constitute an “offering cash flow projections, estimated capital and operating costs, assumptions about future events, including but not limited to memorandum” by High Tide Inc. (“High Tide” or the and all economic analysis derived fro
Slide 3: Company Snapshot
COMPANY SNAPSHOT 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 RETAIL SEGMENT: Share Price1 $0.61 • Over 10 years focused on the cannabis consumer Average Daily Volume2 10.47
Slide 4: Recent Financial Highlights
R E C EN T F I N A N C I A L H I GH LI G H T S ( I N T H O U S A N D S O F C A D ) 1Q20 2Q20 3Q20 4Q20 1Q21 Summary Income Statement (Unaudited) (Unaudited) (Unaudited) (Audited) (Unaudited) In 2Q20, HITI became the Revenue $13,715 $20,570 $24,104 $24,876 $38,319 first Canadian public cannabis retai
Slide 5: Established in All Downstream Markets
ESTABLISHED IN ALL DOWNSTREAM MARKETS 10+ YEARS OF OPERATIONS; 2 VERTICALLY-INTEGRATED SEGMENTS BRICKS & MORTAR ONLINE CANNABIS & ACCESSORIES ACCESSORIES ONLY CBD-FOCUSED RETAIL Canada’s largest recreational cannabis retail Grasscity.com & FABCBD is a leading online network by revenue and one of the
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 STRATEGY DIFFERENTIATION ACCRETIVE GROWTH CONTINUOUS R&D • High-qua
Slide 7: Timeline of Milestones
TIMELINE OF MILESTONES Listed as Founded HITI on Listed as HITI on Nov. 19, 2020 Founded Dec. 17, 2018 $23 MM Founded Bought Deal KushBar Equity 80% Financing Acquired Co-founded 2009 2012 2018 2019 2020 Acquired Invested $4.5 MM Acquired Acquired Co-founded Founded 85 Branded Retail Cannabis Stores
Slide 8: Recent Corporate Highlights
RECENT CORPORATE HIGHLIGHTS May 10, 2021 April 26, 2021 April 22, 2021 High Tide Closes Acquisition of 80% of High Tide Expands Ontario Presence with High Tide Files Final Base Shelf Leading CBD E-Commerce Retailer New Toronto Store, Marking its 85th Prospectus to Raise up to $100,000,000 FABCBD Loc
Slide 9: The Rising Tide of Cannabis
THE RISING TIDE OF CANNABIS RETAIL CANNABIS MARKET SIZE Multi-billion market in Canadian cannabis consumption1 US$3.98 Billion in 2021 MANUFACTURING & WHOLESALE DISTRIBUTION RETAIL EXPERIENCED. WELL POSITIONED. EXECUTING ON GROWTH. The biggest opportunity in Canadian cannabis is downstream 9 1. BDSA
Slide 10: Canna Cabana
RETAIL C A N N A CA B A N A BECOMING CANADA’S LARGEST RETAIL CANNABIS NETWORK Canada’s One-Stop Cannabis Shop: • 47 locations now open in the provinces of Alberta, Ontario & Saskatchewan Current & Projected • Highest average rating by independent Store Counts customer reviews among all retail chains
Slide 11: NewLeaf Cannabis & Meta Cannabis Co.
RETAIL N E W L E A F CA N N A B I S & M E T A C A N N AB I S C O . ACQUIRED AS PART OF META GROWTH IN NOVEMBER 2020 Current & Projected Store Counts As at NewLeaf META Total Stores Target Number of Mar. 2021 Cannabis Cannabis Co. Open Stores AB 19 0 19 Share of 42 ON 0 62 6 Share of 75 MB 0 9 9 9 SK
Slide 12: Transaction Rationale
RETAIL TRANSACTION RATIONALE 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 • Growth plans i
Slide 13: KushBar
RETAIL KushBar SECOND RETAIL CANNABIS BUSINESS: MODERN – OPEN – RELAXED First locations opened in Alberta in September & October 2019 Third location opened in May 2020 As at Current Mar. 2021 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 C I 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: 77% North America; 9% • Over 34 million unique users in • Over 26 million site visits in 2020 United Kingdom; 14
Slide 15: Grasscity – A Strong Strategic Fit
RETAIL G R A S S C I T Y – A S T R O N G S T R A T E GI C F I T MANUFACTURING DISTRIBUTION RETAIL • Design & Production • Optimized Logistics; ship from • Established Online • Brand Licensing North America to local • SEO & Social Media customers • Multiple Warehouses Margin expansion through Access
Slide 16: Smoke Cartel
RETAIL SMOKE CARTEL • Founded in 2013 and based in Savannah, Georgia • In 2020, approximately 7 million site visits and 110,000+ orders • Currently in contact with over 1 million email accounts and social media subscribers • Trusted by over 550,000 total customers to date • Online store carries 200+
Slide 17: FABCBD
RETAIL F A B CB D • Founded in 2017 and based in Milwaukee, Wisconsin • One of the most popular brands for hemp-derived CBD products across the U.S. • FABCBD carries multiple exclusive product formulations that are manufactured by contract manufacturers around the United States • 100% of sales are d
Slide 18: Valiant Distribution
WHOLESALE VALIANT DISTRIBUTION 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 an
Slide 19: Wholesale
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 20: Wholesale – Our Products
WHOLESALE SNOOP DOGG OUR PRODUCTS
Slide 21: Strategic Partners; Growth by Acquisition
STRATEGIC PARTNERS NOTABLE INVESTORS: LEGAL: FINANCE: AUDITOR: SECURITY: TECHNOLOGY: GROWTH BY ACQUISITION Goal of growing the business by acquisition, domestically as well as in the US and EU, through various channels: Industry partnerships also yield transaction Thousands of existing customer rela
Slide 22: Management Team, Board of Directors, Advisors
MANAGEMENT TEAM BOARD OF 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, Rahim Kanji Moose Knuckles Canada Chief Financial Officer Strategi
Slide 23: Shares Outstanding
S H A R E S O U T S T AN D I N G “HITI” LISTED ON As at Share Capitalization Table May 10, 2021 Common Shares - Issued and Outstanding 690,834,715 Potential Shares from Exercise of Warrants 137,887,580 “HITIF” LISTED ON Potential Shares from Stock Options and RSUs 29,945,120 Potential Shares from Co
Slide 24: Why Invest?
WHY INVEST? COMPELLING INVESTMENT OPPORTUNITY IN A RETAIL-FOCUSED CANNABIS LEADER 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. Canada and internationa
Slide 25: 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 25