High Tide Subsidiary NuLeaf Naturals Pursues Participation in U.S. Medicare CBD Pilot Launching Today

Rhea-AI Summary

High Tide (NASDAQ: HITI) said its U.S. CBD subsidiary NuLeaf Naturals intends to pursue participation in CMS Innovation Center's Beneficiary Engagement Incentive (BEI) pilot launching April 1, 2026. The program allows participating ACO REACH and EOM organizations to furnish eligible hemp-derived CBD products to Medicare beneficiaries, up to US$500 per beneficiary per year. CMS may expand BEI to the LEAD Model on Jan 1, 2027. NuLeaf highlights cGMP-certified, FDA-registered manufacturing and product formats aligned to pilot compliance.

Positive

• Benefit cap of US$500 per Medicare beneficiary per year
• Program live for ACO REACH and EOM on April 1, 2026; LEAD expansion Jan 1, 2027
• Manufacturing readiness: NuLeaf operates cGMP-certified, FDA-registered facilities

Negative

• Reimbursement structure: Medicare will not directly pay; costs are borne by participating organizations
• Supplier selection is non-guaranteed; NuLeaf must be chosen by participating organizations

News Market Reaction – HITI

-0.87%

-0.87% Session close to close

In the Apr 1 session, HITI declined 0.87%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement highlights High Tide’s effort to position NuLeaf Naturals within the CMS Beneficia...

Analysis

This announcement highlights High Tide’s effort to position NuLeaf Naturals within the CMS Beneficiary Engagement Incentive pilot, which can provide up to US$500 in eligible hemp-derived CBD products per Medicare beneficiary annually. It builds on prior steps such as joining the National Compassionate Care Council and expanding a 220-store Canna Cabana network. Investors may focus on how many ACOs and oncology practices ultimately select NuLeaf as a supplier and how federal CBD policy and the planned 2027 LEAD Model expansion progress.

Key Figures

CBD benefit cap: US$500 per year per beneficiary LEAD model start: January 1, 2027 NuLeaf founding year: 2014 +4 more

7 metrics

CBD benefit cap US$500 per year per beneficiary Maximum hemp-derived CBD product value under CMS BEI pilot

LEAD model start January 1, 2027 Planned expansion of BEI program to LEAD Model participants

NuLeaf founding year 2014 Year NuLeaf Naturals was founded in Denver, Colorado

Canna Cabana locations 220 domestic, 1 international Global Canna Cabana retail footprint cited in release

Canadian market share 12% Canna Cabana share of Canadian cannabis retail market

5-star reviews 35,000+ Verified 5-star customer reviews for NuLeaf e-commerce products

Pilot launch date April 1, 2026 Start date for CMS BEI hemp-derived CBD pilot program

Historical Context

5 past events · Latest: 2026-03-17 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
2026-03-17	Q1 2026 earnings	Positive	-1.6%	Record quarterly revenue, higher gross profit and positive free cash flow.
2026-03-06	Store expansion	Positive	-0.4%	Opened 220th Canna Cabana store, increasing Ontario footprint and share.
2026-03-04	Policy council role	Positive	-1.2%	Joined National Compassionate Care Council to influence U.S. cannabinoid policy.
2026-03-03	Board changes	Neutral	-0.8%	Added new directors and advisors focused on governance, AI, and real estate.
2026-02-09	Store opening & grants	Positive	+3.0%	New Scarborough store plus stock options and RSUs to support growth.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent history shows several positive corporate and policy developments followed by modest negative price reactions, indicating a tendency for shares to soften after good news.

Recent Company History

Over the past few months, High Tide has focused on expansion and financial strength. It reported record Q1 FY2026 revenue of $178.3M and positive free cash flow, while continuing to grow its Canna Cabana network past 220 Canadian stores and about 12% domestic share. The company also opened new Ontario locations, refreshed its board and advisors, and, importantly, positioned NuLeaf Naturals within U.S. cannabinoid policy discussions via the National Compassionate Care Council. Today’s CMS CBD pilot engagement builds directly on that U.S. policy and access strategy.

Key Terms

centers for medicare & medicaid services, cms innovation center, accountable care organizations, aco reach model, +3 more

7 terms

centers for medicare & medicaid services regulatory

"U.S. Centers for Medicare & Medicaid Services (CMS) Innovation Center's Beneficiary"

The Centers for Medicare & Medicaid Services (CMS) is the U.S. federal agency that runs major public health insurance programs and sets rules for what treatments and services are paid for and how much providers receive. Think of it as the rulebook and paymaster for a large portion of the health-care system: its coverage decisions, payment rates, and regulations can quickly change revenues, costs, and market access for hospitals, insurers, drugmakers and medical-device companies, so investors track its actions closely.

cms innovation center regulatory

"the CMS Innovation Center's Beneficiary Engagement Incentive ("BEI") pilot program"

The CMS Innovation Center (Center for Medicare & Medicaid Innovation) is a federal program that designs and tests new ways to pay for and deliver care under Medicare and Medicaid, functioning like a policy laboratory for payment and care models. Its pilots and demonstrations can change how hospitals, insurers, and drug makers are reimbursed and measured, so investors monitor its work because successful tests can become permanent rules that reshape revenues, costs and competitive dynamics.

accountable care organizations medical

"participating Accountable Care Organizations (ACOs) under the ACO REACH Model"

Accountable care organizations are groups of doctors, hospitals and other health providers that agree to coordinate patient care and share financial responsibility for costs and quality. Think of them as a team that gets a single budget for a patient’s care and is rewarded for keeping people healthy and spending less; for investors, ACOs change how providers earn revenue, shift financial risk, and can influence future margins and payer contracts.

aco reach model medical

"Accountable Care Organizations (ACOs) under the ACO REACH Model and oncology"

ACO REACH is a U.S. Medicare payment model in which groups of doctors, hospitals and other caregivers jointly manage the cost and quality of care for a defined patient population, with special emphasis on improving access and equity for underserved communities. For investors, it matters because participating organizations receive more predictable payments and can share in savings or bear losses based on performance—similar to a team being rewarded or penalized for meeting goals—so it can change providers' revenue stability and demand for medical products and services.

cgmP-certified technical

"with cGMP-certified and FDA-registered manufacturing facilities, with USDA Organic"

cgmp-certified indicates that a company's manufacturing facilities and processes meet current Good Manufacturing Practice standards set by health regulators to ensure products are made consistently, safely and meet quality requirements. For investors, certification lowers the chance of regulatory action, recalls or production stoppages and supports market access and trust—like a restaurant passing a strict health inspection that protects customers and the business.

fda-registered regulatory

"cGMP-certified and FDA-registered manufacturing facilities, with USDA Organic"

An FDA-registered facility or product is one that has been listed with the U.S. Food and Drug Administration as required for certain medical devices, manufacturers, or establishments — like being entered in an official government directory. It does not mean the FDA has approved or certified safety or effectiveness, but it does mean the operation is subject to inspections and regulatory rules, which affects market access, investor risk assessment, and credibility with customers and partners.

usda organic regulatory

"manufacturing facilities, with USDA Organic certification currently in process."

USDA Organic is a government-backed label that certifies food and farming practices meet specific standards for how crops are grown, animals are raised, and products are processed, without most synthetic pesticides, fertilizers, antibiotics or genetic engineering. For investors, the label acts like a trusted seal that can command higher prices, shape brand positioning and consumer demand, and introduce supply-chain or compliance risks if standards aren’t met.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NuLeaf Naturals is Well Positioned to Serve as Supplier to Participating Organizations Under the CMS Innovation Center's Beneficiary Engagement Incentive

CALGARY, AB, April 1, 2026 /PRNewswire/ - High Tide Inc. ("High Tide" or the "Company") (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, today announced that its wholly owned U.S. hemp-derived CBD subsidiary, NuLeaf Naturals, intends to pursue participation in the U.S. Centers for Medicare & Medicaid Services (CMS) Innovation Center's Beneficiary Engagement Incentive ("BEI") pilot program as suppliers of eligible hemp-derived CBD products, and has already begun engaging with participating organizations.

The pilot program, which launched today, represents a significant step toward integrating hemp-derived CBD products into federally supported healthcare models. Under the program, participating Accountable Care Organizations (ACOs) under the ACO REACH Model and oncology practices under the Enhancing Oncology Model (EOM) may elect to furnish eligible hemp-derived products to Medicare beneficiaries at no cost, up to US$500 per year per beneficiary. CMS has indicated that the program may also expand to participants in its Long-term Enhanced ACO Design (LEAD) Model beginning January 1, 2027.

NuLeaf Naturals, founded in 2014 in Denver, Colorado, is one of America's leading cannabinoid companies, with cGMP-certified and FDA-registered manufacturing facilities, with USDA Organic certification currently in process. NuLeaf's product portfolio includes THC-free and broad-spectrum CBD formats designed to align with the pilot program's compliance requirements, covering the full range of eligible product formats under the program.

The Company's engagement with the CMS pilot program builds on the strategic foundation established through its founding membership in the National Compassionate Care Council (NCCC), a coalition of healthcare-focused organizations working to advance evidence-based cannabinoid policy and improve patient access to cannabinoid therapies across the United States.

"The launch of the CMS pilot program is a historic moment for the U.S. CBD industry and, most importantly, for the millions of Medicare beneficiaries who may now have access to hemp-derived cannabinoid therapies at no cost to themselves, with costs borne by participating organizations under CMS models," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"NuLeaf Naturals has spent years building the quality systems, certifications, and product standards that this program demands. We believe NuLeaf is well positioned to serve as a trusted supplier to participating healthcare organizations, and we are actively engaging with ACOs and oncology programs to make that a reality. As this program scales, we believe it has the potential to become a meaningful growth driver for High Tide's U.S. CBD business," added Mr. Grover.

Background on the Pilot Program

On December 18, 2025, the U.S. President signed an Executive Order advancing the rescheduling of cannabis and directing federal agencies to improve access to full-spectrum CBD products. As part of that announcement, CMS Administrator Dr. Mehmet Oz confirmed that the CMS Innovation Center would launch a pilot program allowing Medicare beneficiaries to receive eligible hemp-derived CBD products at no cost if recommended by their physicians.

CMS has since published detailed guidance confirming that the BEI program will be available to participants in the ACO REACH Model and the Enhancing Oncology Model beginning April 1, 2026, with additional availability under the LEAD Model beginning January 1, 2027. Participating organizations must submit an implementation plan to CMS for approval, detailing the specific products, dosing information, beneficiary eligibility criteria, and safeguards to be employed. Medicare does not directly pay for the products; the cost is borne by the participating organization as part of its model participation.

The program has been described by CMS as an opportunity to generate real-world clinical data on the use of hemp-derived CBD products within structured, physician-guided care settings, with the potential for full-reimbursement and expansion when supported by evidence.

ABOUT HIGH TIDE

High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world's most powerful plant. Its wholly owned subsidiary, Canna Cabana, is the second-largest cannabis retail brand globally. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including:

Retail: Canna Cabana™ is the largest cannabis retail chain in Canada, with 220 domestic locations and 1 international location. The Company's Canadian bricks-and-mortar operations span British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario, holding a growing 12% share of the market. In 2021, Canna Cabana became the first cannabis discount club retailer in the world. The Company also owns and operates multiple global e-commerce platforms offering accessories and hemp-derived CBD products. In 2025, the Company became the first North American cannabis operator to launch a bricks-and-mortar presence in Germany. 

Medical Cannabis Distribution: Remexian Pharma GmbH is a leading German pharmaceutical company built for the purpose of importation and wholesale of medical cannabis products at affordable prices. Among all German medical cannabis procurers, Remexian has one of the most diverse reaches across the globe and is licensed to import from 19 countries including Canada.

High Tide consistently moves ahead of the currents, having been named one of Canada's Top Growing Companies by the Globe and Mail's Report on Business in 2025 for the fifth consecutive year and was recognized as a top 50 company by the TSX Venture Exchange (the "TSXV") in 2022, 2024 and 2025. High Tide was also ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023. To discover the full impact of High Tide, visit www.hightideinc.com. For investment performance, don't miss the High Tide profile pages on SEDAR+ and EDGAR.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

ABOUT NULEAF NATURALS

Founded in 2014 in Denver, Colorado, NuLeaf Naturals is one of America's leading cannabinoid companies. Since its inception, the company has been committed to creating the world's highest-quality cannabinoid products in their purest and most potent form. Most of NuLeaf's products are produced at its cGMP-certified and FDA-registered facility, enabling it to manufacture ground-breaking cannabinoid formulations while exceeding the highest levels of regulatory compliance. Their cannabinoid products are sold direct-to-consumer from their website and are also available at select bricks-and-mortar stores across the U.S. The company is committed to creating safe, consistent, and effective products and has proudly received over 35,000 verified 5-star customer reviews through its e-commerce platform. 

ABOUT NATIONAL COMPASSIONATE CARE COUNCIL

High Tide, NuLeaf Naturals, and FAB CBD are founding members of the National Compassionate Care Council (NCCC), a coalition of healthcare-focused organizations dedicated to improving patient access to cannabinoid therapies by modernizing healthcare standards and advancing evidence-based policy. In addition to High Tide and its subsidiaries, founding members include Feals, Medterra CBD LLC, Tilray Inc., Realm of Caring, Lazarus Naturals, Constance CBD, and Equilibria. Through its participation in the NCCC, the Company aims to contribute industry expertise while supporting broader efforts to expand patient access to safe and effective cannabinoid therapies across the United States.

CONTACT INFORMATION

Media Inquiries
Carter Brownlee
Communications and Public Affairs Advisor
High Tide Inc.
cbrownlee@hightideinc.com
403-770-3080

Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
High Tide Inc.
vahan@hightideinc.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release may contain "forward-looking information" and "forward-looking statements within the meaning of applicable securities legislation. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. The forward-looking statements herein include, but are not limited to, statements regarding: whether the CMS pilot program will proceed as announced or expand beyond its initial scope; whether NuLeaf Naturals and FAB CBD will be selected as suppliers by participating organizations; whether the Company's U.S. CBD subsidiaries will benefit commercially from the pilot program; the potential for the pilot program to become a meaningful growth driver for the Company; the ability of the Company's products to meet the program's quality and compliance requirements; whether federal cannabis policy will continue to evolve favorably; and whether the NCCC will achieve its stated objectives. Actual results and developments may differ materially from those contemplated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including but not limited to the risk factors discussed under the heading "Non-Exhaustive List of Risk Factors" in Schedule A to our current annual information form, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at www.sedarplus.ca and www.sec.gov, which factors are incorporated herein by reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results, or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

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SOURCE High Tide Inc.

FAQ

What does High Tide (HITI) announce about NuLeaf pursuing the CMS BEI pilot on April 1, 2026?

NuLeaf intends to pursue supplier participation in CMS's BEI pilot starting April 1, 2026, to supply eligible hemp-derived CBD. According to the company, participating ACO REACH and EOM organizations may furnish products to Medicare beneficiaries up to US$500 per year per beneficiary.

Which Medicare models are eligible for the BEI pilot and when will they be available for HITI's NuLeaf?

The BEI pilot is available to ACO REACH and EOM participants beginning April 1, 2026, with LEAD adding access Jan 1, 2027. According to the company, CMS may expand the program timeline to include LEAD starting January 1, 2027.

What product and manufacturing credentials does NuLeaf Naturals cite for supplying HITI CBD to Medicare beneficiaries?

NuLeaf says it operates cGMP-certified, FDA-registered facilities and offers THC-free and broad-spectrum CBD formats aligned to compliance. According to the company, these credentials position NuLeaf to meet program quality and regulatory requirements for participating organizations.

How much coverage does the BEI pilot provide per Medicare beneficiary for hemp-derived CBD under HITI's announcement?

The BEI pilot allows participating organizations to furnish eligible hemp-derived CBD products at no cost to beneficiaries, up to US$500 per beneficiary per year. According to the company, Medicare itself does not directly pay for these products.

Will Medicare directly reimburse suppliers like NuLeaf under the BEI pilot announced by HITI?

No, Medicare will not directly pay suppliers; participating organizations bear the cost of products for beneficiaries. According to the company, costs are covered by ACOs and oncology practices as part of model participation, not direct Medicare reimbursement.