High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (January 2022)
25 slides from High Tide's investor presentation, Jan 6, 2022
Slide 1: High Tide Investor Presentation
THE RISING TIDE OF CANNABIS HIGH TIDE INVESTOR PRESENTATION JANUARY 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 corporation enhanced FRA:2LYA by the manufacturing and distribution of consumption SHARE PRICE1 accessories: $5.67 RETAIL SEGMENT: AVERAGE DAILY VOLUME2 362K Over 10 years focused on the cannabis consumer
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 106 stores across Ontario, Manitoba, Saskatchewan and Alberta – and BC locations under development. Largest corporately owned store
Slide 5: Completely Transformed Across All Key Areas Since the End of 2020
COMPLETELY TRANSFORMED ACROSS ALL KEY AREAS SINCE THE END OF 2020 OPERATIONAL SIZE / SCALE / PROFITABILITY: • Number of stores gone from 67 at the end of December 2020 to 106 as at January 6, 2022 (long-term target is 200) • Trailing Revenue increased from $70MM to $152MM1 • Trailing Adjusted EBITDA
Slide 6: Recent Financial Highlights (in thousands of CAD)
RECENT FINANCIAL HIGHLIGHTS (IN THOUSANDS OF CAD) SUMMARY INCOME STATEMENT In 2Q20, HITI became the first Canadian public cannabis retailer to report positive 1Q20 2Q 20 3Q20 4Q20 1Q21 2Q21 3Q21 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) Adjusted EBITDA REVEN
Slide 7: 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 8: 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 50% of store revenue comes from club members • ‘Cabanalytics’ data subscription selling retail insights to in
Slide 9: 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 10: 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 • Employee training program results in premier customer service STORE COUNTS BY PROVINCE PROVINCE CURRENT STORES OPEN AB 59 ON 32 MB 9 SK 6 TOTAL 106 Store counts
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 • Over the 12 months ended September 30, 2021, NuLeaf had 5.1 mi
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. • Blessed CBD carries multiple exclusive product formulations that are manufactured by reputable con
Slide 14: CBDcity
RETAIL CBDcity • Despite only launching in May 2020, CBDcity drew over 360 thousand site visits in 2020 • As an online retailer of premium CBD products, CBDcity’s focus is on consumer education and leverages Grasscity’s 20 years of expertise in retail, its established customer base, and supply chain
Slide 15: 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 • Founded in 2000, High Tide • Visitors: 77% North America; 9% • Over 34 million unique users in acquired 100% in 2018 United Kingdom; 14% Other Grasscity Forums s
Slide 16: 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 2020, approximately 43 mi
Slide 17: 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 13,000+ monthly subscribers • Over 23 million site visits
Slide 18: 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 36
Slide 19: 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 20: Wholesale: Celebrity Licenses
WHOLESALE CELEBRITY LICENSES First to secure licenses from movie studios, musicians & other celebrities for consumption accessories including: 20
Slide 21: Wholesale: Our Products
WHOLESALE OUR PRODUCTS 21
Slide 22: 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) • Commencing sales of white label program for our retail net
Slide 23: 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 24: Shares Outstanding
SHARES OUTSTANDING “HITI” “HITI” “2LYA” LISTED ON LISTED ON LISTED ON SHARE CAPITALIZATION TABLE AS AT JANUARY 6, 2022 COMMON SHARES - ISSUED AND OUTSTANDING 59,503,791 POTENTIAL SHARES FROM EXERCISE OF WARRANTS 5,512,455 POTENTIAL SHARES FROM STOCK OPTIONS AND RSUS 2,084,270 POTENTIAL SHARES FROM C
Slide 25: 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 25