High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (February 2020)
23 slides from High Tide's investor presentation, February 2020
Slide 1: Investor Presentation February 2020
INVESTOR PRESENTATION FEBRUARY 2020 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 is strictly confidential and must not be copied, flow projections, estimated capital and operating costs, and all assessment of the relevant information currently available. In distributed, circulated or disseminated withou
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 $0.20 • Over 10 years focused on the cannabis consumer 1 Average Daily Volume2 447,876 • 27 Canna Cabana
Slide 4: 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 T A R ONLINE CANNABIS & ACCESSORIES A C C E S S O R I E S O N LY RETAIL One of Canada’s Deployed selectively Long
Slide 5: 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 6: Timeline of Milestones
T I M E L I N E O F M I L E S TO N E S 27 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 2 Current KushBar Locations 2009 2012 2015 2018 Co-founded 2019 Acquired remaining A
Slide 7: Recent Corporate Highlights
RECENT CORPORATE HIGHLIGHTS January 28, 2020 January 27, 2020 January 7, 2020 High Tide Acquires 50% of Canna Cabana High Tide Acquires Top Performing Canna High Tide Secures $10 Million Credit Retail Cannabis Store in Sudbury, Ontario Cabana Retail Cannabis Store in Hamilton, Facility to Expand in
Slide 8: 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 ) Summary Fiscal 2018 1Q19 2Q19 3Q19 LTM Income Statement (Audited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue $8,749 $5,001 $6,596 $8,288 $22,083 Gross Margin 3,110 1,790 2,351 3,060 6,662 Net Loss for t
Slide 9: The Rising Tide of Cannabis
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 ~ $5 Billion MANUFACTURING & WHOLESALE DISTRIBUTION R E TAI L EXPERIENCED. WELL POSITIONED. EXECUTING ON GROWTH. The biggest opportunity in Canadian canna
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 Current & Projected • 27 locations now open in the provinces of Store Counts Alberta, Ontario & Saskatchewan • Highest average rating by independent As at
Slide 11: 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. Next location coming soon… As at Jan. Current 2020 Stores Open Permits Leases AB 2 3 3 ON 0 0 5 Total 2 3 8 11
Slide 12: Future Concept
RETAIL F U T UR E CO N C E P T EXPECTED TO LAUNCH UPON LEGALIZATION OF CONSUMPTION LOUNGES 12
Slide 13: 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 • 90% of orders from customers in the • 34 million unique users in • 5.8 million site visits per year U.S. Grasscity Forums s
Slide 14: 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 15: Smoker's Corner
RETAIL S M O KE R’ S C O RN E R SMOKING ACCESSORIES & CANNABIS LIFESTYLE PRODUCTS 10+ Years of Retail Experience Serving the Cannabis Enthusiast One of Canada’s Largest Counter-culture Chains K E Y R E L AT I O N S H I P S : • Over 170,000 annual retail customers 11 Current Locations • Dozens of dir
Slide 16: RGR Canada
WHOLESALE R G R C AN A D A Distribution network Manufacturing contracts 10 Years >4,300 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 Products
WHOLESALE FAMOUS BRANDZ FAMGUS 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 : FINANCE: AUDITOR: S E C U R I T Y: T E C H N O L O G Y: R E TA I L LEGAL: BUILD-OUTS: 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:
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 Rahim Kanji, MBA, CPA, CA External Legal Counsel Chief Financial Officer Strategic Adviso
Slide 21: Shares Outstanding
S H A R E S O U TS TA N D I N G As at January 31, 2020 Share Capitalization Table Common Shares - Issued and Outstanding 223,354,868 Potential Shares from Stock Options1 10,560,000 Potential Shares from Exercise of Warrants2 101,528,463 Potential Shares from Exercise of Broker Warrants3 4,748,853 Po
Slide 22: Why Invest?
WHY INVEST? COMPELLING INVESTMENT OPPORTUNITY IN DOWNSTREAM CANNABIS LEADER A manufacturer, distributor and retailer’s Available franchises with perspective on the hottest cannabis infrastructure backed by financing for products and accessories. the fastest deployment in the country. STOCKED FLEXIBL
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 Nick Kuzyk, MBA 1.888.9.420.420 Chief Strategy Officer & SVP Capital Markets ir@HighTideInc.com nick@hightideinc.com HighTideInc.com 23