High Tide Inc (NASDAQ:HITI, CVE:HITI) has been executing on all fronts since our last interview in 2019. But, in the last six months, the company has taken it to the next level, becoming the runaway success of the Canadian cannabis industry. The biggest demonstration of that success was highlighted last week as High Tide became the first major publicly traded cannabis retailer to trade on the Nasdaq.
“Over the last 8 months, I would say the company has been transformed upside down. From when I saw you in 2019, we were at 4 cannabis stores and 4 accessory stores because we had that memorandum in Alberta. And today this morning alone we opened our 88th cannabis retail store in Canada. We’ve acquired 4 companies since which I’d love to talk to you about. And we became the first cannabis retailer, publicly-traded cannabis retailer to not just apply to list on the NASDAQ but to be approved and starting to trade on the NASDAQ.” – High Tide CEO Raj Grove
Over the last 6 months, High Tide has not only massively increased its store presence, but its share price has tripled, revenues jumped 50%, and they have cut their debt by half.
The company’s success comes through its retail and e-commerce strategy rather than growing physical cannabis products. Retailers are better shielded than growers from decreases in the wholesale price of flowers and are able to keep their gross margins high with limited capital expenditure. High Tide reported gross margins of 37% for the past fiscal year.
High Tide’s acquisitions of Grasscity, Smokecartel, CBDcity, FABCBD have also greatly increased its online capabilities in the United States. As a result, the company’s run rate has increased by 40% – generating $40 million annually selling accessories and hemp-derived CBD in the US alone.
With these acquisitions, High Tides CEO is ready to take on MSOs and take the company’s Canadian success to America.
“If 25% of the United States allow online cannabis sales, well we are the best-placed company to take advantage of that, I don’t even think an MSO can stand up to what we have in terms of our online capabilities ” – High Tide CEO Raj Grove
Watch the full interview to learn about the companies amazing transformation, what is driving its revenue increases and its US expansions.