High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (February 2023)
26 slides from High Tide's investor presentation, February 2023
Slide 1: High Tide Investor Presentation
THE RISING TIDE OF CANNABIS HIGH TIDE INVESTOR PRESENTATION FEBRUARY 2023 Over 10 Years in Business Unique and Diversified Cannabis Ecosystem Retail-Focused Growth Initiatives 1
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation does not constitute an “offering and all economic analysis derived from such estimates assurance that such information will prove to be memorandum” by High Tide Inc. (“High Tide” or the and forecasts. accurate as actual results and future event
Slide 3: Company Snapshot
COMPANY SNAPSHOT STOCK SYMBOLS TSXV:HITI | NASDAQ:HITI | High Tide is a leading retail-focused cannabis company with FRA:2LYA bricks-and-mortar as well as global e-commerce assets. SHARE PRICE1 $2.07 Founded in 2009, High Tide Inc. has become the largest revenue-generating cannabis company in Canada
Slide 4: Unique Diversified Ecosystem Across the Value Chain - By Geography & Segment
UNIQUE DIVERSIFIED ECOSYSTEM ACROSS THE VALUE CHAIN - BY GEOGRAPHY & SEGMENT THC CBD ACCESSORIES High Tide’s portfolio also includes the two most popular consumption accessory e- commerce platforms in the world4. North America’s first discount club retailer of cannabis. Largest non- franchised canna
Slide 5: Recent Financial Highlights (in thousands of CAD)
RECENT FINANCIAL HIGHLIGHTS (IN THOUSANDS OF CAD) SUMMARY INCOME STATEMENT In 2Q20, HITI became the first Canadian 1Q21 2Q21 1Q22 2Q22 3Q22 4Q22 2 (UNAUDITED) (UNAUDITED) 3Q21 (UNAUDITED) 4Q21 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) public cannabis retailer to report positive Adj
Slide 6: Retailers Are Not LPs
RETAILERS ARE NOT LPS • Years into legalization, many licensed producers are facing excess supply, inventory writedowns, shuttered facilities, goodwill impairments and negative EBITDA. • Retailers often benefit from issues faced by LPs, and generally experience completely different dynamics (revenue
Slide 7: A Leading Retail Cannabis Network Across Canada
RETAIL A LEADING RETAIL CANNABIS NETWORK ACROSS CANADA • Industry leading Cabana Club loyalty plan is the largest bricks and mortar cannabis loyalty plan in Canada – over 90% of store revenue is driven by club members • ‘Cabanalytics’ data subscription includes the most comprehensive retail insights
Slide 8: Retail: Store Counts by Province
RETAIL • Stores laid out in an open, retail-friendly environment, allowing customers to view products • Walls surrounded by up to 1,000 SKUs of accessories • Robust employee training program results in industry-leading customer service STORE COUNTS BY PROVINCE PROVINCE CURRENT STORES OPEN AB 75 ON 4
Slide 9: North America's First Cannabis Discount Club Retailer
RETAIL NORTH AMERICA’S FIRST CANNABIS DISCOUNT CLUB RETAILER • In October 2021, Canna Cabana launch North America’s first of its kind cannabis discount club model • Our discount club model offers unbeatable prices, leveraging our unique strengths of vertical integration, our diversified ecosystem, t
Slide 10: Canna Cabana Launches ELITE, Canada's First Paid Cannabis Subscription Program
CANNA CABANA LAUNCHES ELITE CANADA’S FIRST PAID CANNABIS SUBCRIPTION PROGRAM • In November 2022, Canna Cabana launched ELITE, the next evolution in our innovative discount club model1, further solidifying the loyalty loop with our Cabana Club members and providing a recurring high- margin revenue op
Slide 11: White Label Products to Enhance Margins & Build Owned Brands
WHITE LABEL PRODUCTS TO ENHANCE MARGINS & BUILD OWNED BRANDS • As leading retailer in the country with the most size and scale, white label presents an exciting opportunity to enhance margins and build our own brands in the market • Launched Cabana Cannabis Co. cannabis products in mid-2022 and also
Slide 12: Fastendr Technology Offers Enhanced Customer Experience
RETAIL FASTENDR™ TECHNOLOGY OFFERS ENHANCED CUSTOMER EXPERIENCE • Acquired by High Tide in February 2022, Fastendr™ is a unique and fully automated technology that integrates retail kiosks and smart lockers to facilitate a better buying experience through browsing, ordering and pickup. • The technol
Slide 13: NuLeaf Naturals
RETAIL NuLeaf Naturals • Founded in 2014, High Tide acquired 80% in November 2021 with an option to acquire the remaining 20% • NuLeaf Naturals is one of America’s leading cannabinoid companies • Most of NuLeaf’s products are produced at its cGMP-certified facility, enabling them to manufacture grou
Slide 14: FAB CBD
RETAIL FAB CBD • Founded in 2017, High Tide acquired 80% in May 2021 with an option to acquire the remaining 20% • One of the most popular brands for hemp-derived CBD products across the U.S., including CBD oils, tinctures, creams, and gummies. FAB CBD carries multiple exclusive product formulations
Slide 15: Blessed CBD
RETAIL BLESSED CBD • Founded in 2019, High Tide acquired 80% in October 2021 with an option to acquire the remaining 20% • Blessed CBD is one of the leading online retailers of hemp-derived CBD products in the U.K., including CBD oils, creams, gummies, and capsules. • In 2022, Blessed was invited to
Slide 16: Grasscity - World's First Online Consumption Accessories Platform
RETAIL GRASSCITY - WORLD’S FIRST ONLINE CONSUMPTION ACCESSORIES PLATFORM WORLD’S TOP ACCESSORIES LARGE U.S. CUSTOMER BASE FORUMS & SOCIAL MEDIA E-RETAILER • Visitors: 77% U.S.; 8% United • 6.2 million unique users in • World’s first online consumption Kingdom; 5% Canada; 10% Other Grasscity Forums i
Slide 17: Smoke Cartel
RETAIL SMOKE CARTEL • Founded in 2013, High Tide acquired 100% in March 2021 • Proprietary drop-shipping technology seamlessly connects brands and vendors with Smoke Cartel’s growing customer base • Carries over 15,000 SKUs on the platform without holding any inventory • In 2022, over 40 million pag
Slide 18: Daily High Club
RETAIL DAILY HIGH CLUB • High Tide acquired 100% in July 2021 • Daily High Club provides a marketplace with a wide variety of high-quality products and subscription boxes and is one of the leading online retailers of glass water pipes, vaporizers, and other in-demand consumption accessories • 1+ mil
Slide 19: DankStop
RETAIL DANKSTOP • High Tide acquired 100% in August 2021 • DankStop is one of the foremost online retailers of consumption accessories • Uses Smoke Cartel and other drop-ship technologies to facilitate the transactions to consumers without holding any physical inventory, seamlessly connecting vendor
Slide 20: Wholesale: Valiant Distribution
WHOLESALE VALIANT DISTRIBUTION Distribution network Manufacturing 10+ YEARS >5,000 SKUs extends from our contracts with industry Experience in the Extensive product network of facilities in leading factories in design and branding of catalog with ~80% Calgary, Las Vegas and China, the United in dema
Slide 21: Wholesale: Celebrity Licenses
WHOLESALE CELEBRITY LICENSES First to secure licenses from movie studios, musicians & other celebrities for consumption accessories including: 21
Slide 22: Wholesale: Our Products
WHOLESALE OUR PRODUCTS 22
Slide 23: Future Growth Drivers
FUTURE GROWTH DRIVERS • FUTURE ACQUISITIONS – TYPICAL TARGET CRITERIA: • Complementary to our existing ecosystem • Immediately accretive to earnings (vs turnaround stories) • Increased store count in Canada (long-term target of 250 stores) • Impact of sales of recently launched white label program f
Slide 24: Executive Team
EXECUTIVE TEAM MANAGEMENT TEAM BOARD OF DIRECTORS Raj Grover Sandy Sharma Vice President, Raj Grover Founder, President & Chief Human Resources Executive Chairman Executive Officer Joy Avzar Andrea Elliott Aman Sood EVP Direct to Consumer, Vice President & Legal Chief Operating Officer Moose Knuckle
Slide 25: Shares Outstanding
SHARES OUTSTANDING “HITI” “HITI” “2LYA” LISTED ON LISTED ON LISTED ON SHARE CAPITALIZATION TABLE AS AT JANUARY 11, 2023 COMMON SHARES - ISSUED AND OUTSTANDING 74,474,668 POTENTIAL SHARES FROM EXERCISE OF WARRANTS 11,385,041 POTENTIAL SHARES FROM STOCK OPTIONS 2,298,056 POTENTIAL SHARES FROM RSUs 173
Slide 26: Thank You
THE RISING TIDE OF CANNABIS THANK YOU Raj Grover High Tide Inc. Founder, President, 11127 15th St. NE CEO & Executive Chairman Unit #112 raj@hightideinc.com Calgary, AB T3K 2M4 T (403) 265.4207 TF 1.888.9.420.420 hightideinc.com 26