High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (August 2022)
24 slides from High Tide's investor presentation, August 2022
Slide 1: High Tide Investor Presentation
THE RISING TIDE OF CANNABIS HIGH TIDE INVESTOR PRESENTATION AUGUST 2022 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 retail-focused cannabis company enhanced by FRA:2LYA the manufacturing and distribution of consumption SHARE PRICE1 accessories: $1.88 AVERAGE DAILY VOLUME2 292K RETAIL SEGMENT: Over 10 years focused on the cannabis consumer SHA
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 North America’s first and only discount club retailer of cannabis, with 139 stores across Ontario, Manitoba, Saskatchewan, Alberta – and BC locations under development1. Largest corporately owned store n
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 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) public cannabis retailer to report positive Adjus
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 offering members instant discounts at checkout, and promotions direct to their phone – over 90% of store revenue comes from club members • ‘Cabanalytics’ data subscription selling retail insights to in
Slide 8: Canna Cabana Becomes North America's First & Only Cannabis Discount Club Retailer
RETAIL CANNA CABANA BECOMES NORTH AMERICA’S FIRST & ONLY CANNABIS DISCOUNT CLUB RETAILER • In October 2021, we transitioned all Canna Cabana stores to a discount club concept with exclusive benefits for Cabana Club members – leveraging our unique strengths of vertical integration, our diversified ec
Slide 9: Retail: Store Counts by Province
RETAIL • Stores laid out in an open environment, allowing customers to view products • Walls surrounded by up to 700 SKUs of accessories • Robust employee training program results in premier customer service STORE COUNTS BY PROVINCE PROVINCE CURRENT STORES OPEN AB 75 ON 42 SK 10 MB 9 BC 3 TOTAL 139
Slide 10: 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 11: NuLeaf Naturals
RETAIL NuLeaf Naturals • Founded in 2014, High Tide acquired 80% in November 2021 with an option to acquire the remaining 20% • NuLeaf is a market leader in the production and distribution of premium cannabidiol (CBD) wellness products • During 2021, NuLeaf had 4.9 million site visits, and an averag
Slide 12: 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. • FAB CBD carries multiple exclusive product formulations that are manufactured by reputable contract manufa
Slide 13: Blessed CBD
RETAIL BLESSED CBD • Founded in 2019, High Tide acquired 80% in October 2021 with an option to acquire the remaining 20% • One of the most popular brands for hemp-derived CBD products across the U.K. • Entered the German CBD market in March 2022 • Blessed CBD carries multiple exclusive product formu
Slide 14: Grasscity - World's Best Known Online Head Shop
RETAIL GRASSCITY - WORLD’S BEST KNOWN ONLINE HEAD SHOP WORLD’S TOP ACCESSORIES LARGE U.S. CUSTOMER BASE FORUMS & SOCIAL MEDIA E-RETAILER • Visitors: 77% U.S.; 8% United • Over 100 million unique users in • Founded in 2000, High Tide Kingdom; 5% Canada; 10% Other Grasscity Forums since 2017 acquired
Slide 15: 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 17,000 SKUs on the platform without holding any inventory • In 2021, approximately 50 mi
Slide 16: Daily High Club
RETAIL DAILY HIGH CLUB • High Tide acquired 100% in July 2021 • Daily High Club is one of the leading online retailers of glass water pipes, vaporizers, and other in demand consumption accessories • 1+ million consumption accessories sold and 12,000+ monthly subscribers • Over 16 million site visits
Slide 17: DankStop
RETAIL DANKSTOP • High Tide acquired 100% in August 2021 • DankStop is a leading online consumption accessories retailer • With an industry leading and innovative website, and dedicated support team, DankStop has raised the bar for the online consumption supply industry since 2014 • Approximately 33
Slide 18: 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 ~70% Calgary, Las Vegas and China, the United in deman
Slide 19: Wholesale: Celebrity Licenses
WHOLESALE CELEBRITY LICENSES First to secure licenses from movie studios, musicians & other celebrities for consumption accessories including: 19
Slide 20: Wholesale: Our Products
WHOLESALE OUR PRODUCTS 20
Slide 21: 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 200 stores) • Impact of sales of recently launched white label program f
Slide 22: Executive Team
EXECUTIVE TEAM MANAGEMENT TEAM BOARD OF DIRECTORS Raj Grover Omar Khan Founder, President & Chief Senior Vice President Raj Grover Executive Officer of Corporate & Public Executive Chairman Affairs Joy Avzar Andrea Elliott Rahim Kanji EVP Direct to Consumer, Vice President & Legal Chief Financial Of
Slide 23: Shares Outstanding
SHARES OUTSTANDING “HITI” “HITI” “2LYA” LISTED ON LISTED ON LISTED ON SHARE CAPITALIZATION TABLE AS AT AUGUST 9, 2022 COMMON SHARES - ISSUED AND OUTSTANDING 69,863,368 POTENTIAL SHARES FROM EXERCISE OF WARRANTS 11,385,041 POTENTIAL SHARES FROM STOCK OPTIONS 2,293,918 POTENTIAL SHARES FROM RSUs 132,1
Slide 24: 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 24