High Tide

About High Tide

High Tide Inc. operates as a retail-focused cannabis company, positioning itself as the largest cannabis retail brand in Canada with over 200 Canna Cabana locations. The company was founded in 2009 by Raj Grover, who started with a single shop and two employees. Initially known as High Tide Ventures Inc. and operating as 'Smokers Corner', the business focused on importing and selling cannabis consumption accessories. Grover, who immigrated to Canada from India, drew upon an entrepreneurial family background to establish several small businesses before founding High Tide.

Following the legalization of recreational cannabis in Canada in late 2018, the company pivoted its strategy, rebranding its stores to Canna Cabana and incorporating cannabis products into its offerings. This marked a period of rapid organic growth and strategic acquisitions, leading to the company going public on the Canadian Securities Exchange in early 2019 and later listing on the Nasdaq under the ticker 'HITI'. The business model revolves around a vertically integrated approach, combining brick-and-mortar retail with a substantial global e-commerce presence for consumption accessories and hemp-derived CBD products. High Tide's e-commerce portfolio includes well-known sites like Grasscity.com and Smokecartel.com.

A key differentiator for High Tide is its innovative discount club model, launched in 2021, which transformed its Canna Cabana stores into a membership-based retail experience. This program features a free "Cabana Club" and a paid subscription tier called "ELITE," which offers steeper discounts and exclusive perks. This model has been instrumental in driving customer loyalty, with the Cabana Club surpassing two million members. Revenue is generated through retail sales of a wide array of cannabis products, including flower, pre-rolls, and edibles, as well as consumption accessories and CBD products sold online. The company has achieved consistent positive adjusted EBITDA for 21 consecutive quarters and has recently reported positive free cash flow, underscoring its operational efficiency. High Tide is actively expanding its footprint, with a long-term goal of over 300 stores in Canada and a strategic entry into the German medical cannabis market through the acquisition of a majority stake in Remexian Pharma GmbH.