Alert: Own the MedMen of Canada for A Fraction of the Market Cap

2018’s legalization of recreational cannabis in Canada has triggered a potentially explosive investment opportunity.

The Canadian government legalized recreational cannabis on October 17th, 2018 and sales at cannabis stores in the first 15 days after legalization totalled $43 million according to Statistics Canada.¹ Canadians spent $1.6 billion on legal cannabis in 2018, more than double the amount that was spent solely on medical cannabis in 2017, according to a new report, making it the #3 legal cannabis market in the world.

This new report predicts that Canada’s legal cannabis market will hit $7.8 billion in 2022, at which point it is expected to overtake California as the top legal cannabis market globally.² The industry in the U.S. is projected to generate up to $9 billion in retail sales this year alone – up from roughly $1 billion in 2011. ³ It’s clear that the next few months will see a dramatic new wave of growth and expansion in the cannabis industry – especially in downstream markets. And one company is now strongly positioned to satisfy the flood of demand that is imminent.

That company is High Tide Inc. (CSE: HITI, OTC: HITIF, FRA: 2LY),  a vertically-integrated and retail-focused cannabis company celebrating 10 years of business in 2019. High Tide has grown from a single retail store in Calgary, Alberta back in 2009 to its status today as a leader in the cannabis retail and lifestyle products industry.

High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) has under its portfolio 6 thriving enterprises, assets of which include 11 Canna Cabana retail cannabis stores, 13 Smoker’s Corner stores, and Grasscity.com – the world’s leading e-commerce website for smoking accessories and cannabis lifestyle products.

High Tide Inc. Appears Significantly
Undervalued… But for How Much Longer?

High Tide’s (CSE: HITI, OTC: HITIF, FRA: 2LY) established retail presence in the Canadian market gives the company a significant edge when compared to U.S.- based comparable companies. Many High Tide retail locations enjoy first-to-market advantages in prime real estate locations.

Making this an even more attractive scenario is High Tide’s (CSE: HITI, OTC: HITIF, FRA: 2LY) current valuation scenario. Since the company only recently became publicly-listed, the market cap for High Tide is far below other comparable peers in the industry.

Explosive Growth Potential for High Tide

*All information presented as of March 28th, 2019
** There are numerous reasons that could cause differences in market cap, including jurisdiction of operation, the cash position of the company, history of financial performance, etc.

In fact, there are companies with ZERO retail stores open such as Solo Growth and only ONE retail store open such as Westleaf – that currently have a market cap many times higher than that of High Tide.

At the moment, High Tide’s (CSE: HITI, OTC: HITIF, FRA: 2LY) shares are trading at approximately 8x Revenue (TTM), while many comparable companies are trading at an average of 20x Revenue (TTM). Thanks to Canada’s nationwide legalization of recreational cannabis, High Tide has the potential to grow faster than companies like MedMen or Trulieve.

This strong retail foothold – which High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY)  has already established with businesses like Canna Cabana – has allowed the company to begin an aggressive expansion campaign which includes additional locations with a goal of exceeding 120 locations nationwide over the next two years.

The window of opportunity for you to invest in companies like MedMen and Trulieve has already closed.

BREAKING NEWS

Aphria Anchors High Tide $10 Million Capital Raise

April 10,2019 – High Tide announced that it has launched a non-brokered private placement for the sale of up to 10,000 convertible debentures for gross proceeds of up to $10 million CDN. The offering is anchored by an order from Aphria Inc. in the amount of $4.5 million CDN. ¹²

This is a company following a proven blueprint for success – and as the number of retail locations increases, the potential exists for a corresponding increase in market capitalization that could offer you a “second chance” at significant cannabis profits. But this scenario could change at any minute, as investors and market-makers gain awareness about the company’s high-upside potential.

High Tide Capital Investment

Another point that makes High Tide  (CSE: HITI, OTC: HITIF, FRA: 2LY) especially attractive is that within the past several months, the company has completed two capital raises – totalling $29.6 million – to help achieve its growth initiatives.

High Tide Inc. Strongly Positioned for the Coming Explosion in Retail Cannabis Growth

Investors who aren’t looking at retail could be missing a huge opportunity. Leading up to legalization, licensed growers saw their stocks on an upward trend for the year,  sparked by speculation and huge investment into the market.

Once legalization hit, the bottom dropped out as investors started to think these companies’ valuations were possibly skewed by the hype.

Now that cannabis is legal in Canada and financial reports begin to roll in, it will be easier to separate the contenders from the pretenders and make better, informed choices. One of the contenders is High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY).

National Access Cannabis Corp. reported on January 10 that their 20 retail locations saw $10.18 million in sales in just 80 days since legalization, with an average gross margin of over 32%.

These numbers should be seen as promising to investors, as it shows the demand for cannabis in retail outlets is strong and will only be increased as new products are introduced and shortages decreased.

“We believe that by 2020, the legal market for adult- use cannabis will approach $6.5 billion in retail sales,” CIBC said. “For context, this is greater than the amount of spirits sold in this country, and approaches wine in scale.” ¹²

Investors looking to take maximum advantage of the rapidly growing retail cannabis market should strongly consider adding shares of High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) as it is well-positioned with its 11 retail locations.

Huge Success for Cannabis in
Retail Sales Per Square Foot

With three distinct retail enterprises – and a rapidly-growing number of locations – High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) is well positioned to take advantage of the projected explosion in growth in the retail cannabis space.

And cannabis retailers are now outperforming some of the world’s biggest brands on a dollar-per-square foot basis:

MedMen is generating annualized revenue-per-square-foot of US$6,541 (CA$8,470).

By comparison, according to CoStar, the average sales per square foot for an Apple store is approximately US$5,546 (CA$7,282) and approximately US$2,951 (CA$3,875) for Tiffany & Co. stores. ⁵ According to Arcview Research, global spending in the retail cannabis market is expected to grow from $12.9 billion in 2018 to $32 billion by 2022. ⁶

2019 Explosion Of Cannabis Mergers
And Acquisitions Predicted

2019 which looks like a it could be a huge year for industry mergers, acquisitions and expansion. Large companies, like those in the food, tobacco and pharmaceutical industries have mostly stayed on the sidelines, held back by regulatory concerns, but are now expected to enter the market.

Cannabis companies are very aware that they could be acquired. For the ones going public, “the one common question they all have beforehand is how this move will position them as a potential acquisition target,” said Scott Hammon, COO at The MGO | ELLO National Cannabis Alliance, a firm in the cannabis financial, tax and advisory services.

Acquisitions are common, in July 2018 when Canopy Growth Corp. acquired Hiku Brands, Ltd – the parent company of cannabis lifestyle brand Tokyo Smoke – for $270 million. ⁷ This acquisition by Canopy Growth Corp. of a cannabis lifestyle and retail play demonstrates the potential market for similar companies – something that followers of High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) should pay careful attention to.

But this acquisition was just one of several that have taken place in this space over the past several months.

For example,  in November 2018 MedMen Enterprises acquired PharmaCann for $682 million (US). ⁹

6 Thriving Enterprises Combine to Make Up One of
Canada’s Most Promising Cannabis Play for 2019

With a decade of experience in retail cannabis accessories, High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) has grown to become the largest counter-culture chain in Canada, a global manufacturer of cutting-edge cannabis accessories, a national distributor to retailers across the nation and the most sophisticated, fully-integrated cannabis enterprise in the country.

Launched in 2018, Canna Cabana offers recreational cannabis products along with High Tide’s wide range of well-known smoking accessories. Canna Cabana is a ground-breaking brand that provides an approachable, playful and sophisticated experience for the retail customer.

With 11 stores now open and a target of more than 120 stores across Alberta, British Columbia, Ontario and Saskatchewan within the next two years, Canna Cabana is positioned to be one of Canada’s largest cannabis retail networks.  Recently, the company announced that it has entered into two Letters of Intent (“LOI”) for retail locations in Saskatchewan and is also awaiting a wholesale permit there for its subsidiary,  Kush West Distribution, which will allow it to purchase cannabis directly from licensed producers and sell it to retailers.  Most recently High Tide announced that it has entered into three agreements to establish stores with winners of the Ontario cannabis retail lottery, which is Canada’s most populous province.

High Tide Expansion Projections

High Tide’s (CSE: HITI, OTC:HITIF, FRA: 2LY) third retail brand, KushBar, is in the beginning stages of development. KushBar locations will offer cannabis consumers an elevated experience with proprietary products, excellent customer service and attractive décor.

Founded in 2009, Smoker’s Corner is High Tide’s (CSE: HITI, OTC: HITIF, FRA: 2LY)  first and founding retail brand and has grown to become one of Canada’s largest counter culture chains. Having served approximately 170,000 customers per year, the chain has 13 current locations across Alberta, British Columbia and Nova Scotia.

On average over time, each Smoker’s Corner location has generated $380,000 per year from the sale of smoking accessories and its top location generates $850,000 per year.

RGR is Canada’s premier distributor and manufacturer of cannabis accessories. 75% of its catalog is manufactured in-house in order to help maximize profit margins…and the company has an extensive product catalog of more than 4,300 SKUs.

RGR has exclusive manufacturing contracts with industry-leading factories in China and across the world and a national distribution network extending from its new 27,000 square foot warehouse and office facility in Calgary, Alberta. High Tide’s (CSE: HITI, OTC: HITIF, FRA: 2LY) next subsidiary is Famous Brandz. Through partnerships with celebrity and entertainment brands including but not limited to Snoop Dogg, Cheech & Chong’s Up in Smoke, Kevin Smith’s Jay and Silent Bob characters, Trailer Park Boys, Guns N’ Roses and Hellboy, Famous Brandz has become a dominant manufacturer of licensed smoking accessories distributed globally.

High Tide,  via Famous Brandz, has recently developed and launched “Famous X”,  a cannabis lifestyle product line that is being offered in convenience stores, gas stations, specialty stores and big-box retailers.

High Tide Enters European Market with Key Acquisition

In December 2018,  High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) announced the completion of its acquisition of Grasscity – giving the company a key strategic presence in the European market.

Based in Amsterdam, Grasscity.com is the world’s premier online store for smoking accessories and cannabis lifestyle products and one of the most searched and visited smoking accessories e-retailers, with approximately 5.8 million site visits annually.

The site has in excess of 550,000 customers in its database, generates over 90% of its revenues from customers located in the United States and fulfills approximately 65,000 orders per year. Grasscity has approximately 1.1 million recipients in its e-mail database, with over 375,000 current subscribers including approximately 80,000 dedicated readers of its weekly newsletter.

This acquisition of a key European presence signals the beginning of High Tide’s (CSE: HITI, OTC: HITIF, FRA: 2LY) growth beyond North America and opens up a significant new source of revenue for the company.

A Strong, Experienced Management Team is Guiding
High Tide to Continued Success

High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) is led by a proven, visionary leadership team with decades of successful experience in the areas of retail, operations, entrepreneurship, finance, marketing and real estate.

Raj Grover – Founder, President & CEO Mr. Grover is the founder of High Tide and its subsidiary companies of RGR Canada, Smoker’s Corner and Canna Cabana, while also being the co-founder of High Tide’s newest subsidiary, Famous Brandz. Raj started Smoker’s Corner in 2009 and RGR Canada in 2011 and has been operating profitably as a pioneer in the cannabis accessories industry ever since. Currently, he is a national franchisor and entrepreneur with 17 years of experience in building and selling successful companies. Mr. Grover leads the industry in manufacturing capabilities and has built the largest network of comparable retail stores in Canada.

Nick Kuzyk, MBA – Chief Strategy Officer & SVP, Capital Markets Mr. Kuzyk joined High Tide in April of 2018 and brings over 15 years of experience in business development, mergers and acquisitions and investor relations. From early-stage ventures to large cap corporations, Nick has developed a balanced expertise comprised of both qualitative and quantitative aspects rooted in strategic communications and financial analysis. Mr. Kuzyk holds both an HBA and MBA from the Richard Ivey School of Business (Ivey) at Western University, is the Treasurer of the Alberta chapter of the Canadian Investor Relations Institute (CIRI) and has also completed the CIRI/Ivey Strategic Management of Investor Relations Program.

Andy Palalas – Chief Revenue Officer Mr. Palalas is responsible for developing distribution channels, sourcing new market opportunities and overseeing the revenue portfolio of High Tide. Andy is a business growth and sales professional with a decade of experience in implementing sales programs for established corporations and start-ups alike. With extensive experience in the loyalty marketing sector, a track record of explosive growth in franchise sales and operations, and a holistic mastery of ground-level business development through to overarching marketing strategy, Andy has most recently taken Famous Brandz from inception to one of the leading manufacturers of smoking accessories internationally. A relentless new business hunter and relationship builder, Andy is determined to fulfill High Tide’s vision of becoming the largest vertically integrated cannabis enterprise in the world.

Alex Mackay – Chief Operating Officer Mr. Mackay joined the High Tide family in February 2019 after a 21-year career at Shaw Communications, one of Canada’s largest telecommunications organizations. Known as an adaptable leader with a proven track record of driving breakthrough business results, Mr. Mackay has extensive operational experience including key roles as Senior Director of Contact Centers and Retail Operations, National Director of Field Support Operations and National Sales Director. Key team milestones include the achievement of industry-leading customer satisfaction scores, proven significant step increases to incremental sales and revenues and the creation and implementation of a suite of new Standard Operational Practices adopted within a +10K employee organization. Mr. Mackay’s career and achievements have been grounded in exceptional people practices, including targeted talent acquisition of top performers, building high-performing collaborative teams followed with strong execution. Raised in Victoria BC, Mr. Mackay completed his degree at the University of Victoria and moved with his family to Calgary in 2012.

High Tide Is Potentially The Most Undervalued
Public Retail Dispensary Company In North America

Why Investors Should Consider High Tide Right Now

POTENTIAL FOR RAPID GROWTH IN VALUATION Since the company only recently became available to retail investors, the market cap for High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) is far below its industry peers. But this scenario could change at any minute, as investors and market-makers gain awareness about the company’s high-upside potential.

EXPLOSION IN RETAIL GROWTH AHEAD According to market experts, global spending in the retail cannabis market is projected to grow from $12.9 billion in 2018 to $32 billion by 2022. ¹⁰ This continued growth represents a “right place, right time” scenario for early investors in High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) .

VERTICALLY INTEGRATED AND RETAIL FOCUSED High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) has under its portfolio 6 significant enterprises and has over 23 existing cannabis related retail locations and bolsters Canada’s largest counter-culture retail chain.

10 YEARS – AND COUNTING – OF CANNABIS SUCCESS Unlike other cannabis investments that are newly-formed, High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) offers investors an opportunity to invest in a company with a full decade’s worth of proven success in the cannabis space.

STRONG, EXPERIENCED MANAGEMENT High Tide (CSE: HITI, OTC: HITIF, FRA: 2LY) is led by an experienced leadership team with decades of documented success in the areas of retail, operations, entrepreneurship, finance, law and real estate.

Marijuanastox.com has received permission to send its readers a special investor kit prepared by the company.

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