High Tide Welcomes Biden Administration Move to Reschedule Cannabis

Rhea-AI Summary

High Tide Inc. welcomes the Biden administration's move to reschedule cannabis from Schedule I to Schedule III, potentially allowing companies to deduct business expenses. The company sees this as a historic moment for cannabis reforms in the U.S., aiming to support the growth of a legal sector and displace the illicit market, with positive implications for its international prospects.

Positive

• The reclassification of cannabis to Schedule III could allow companies to deduct business expenses from gross income, potentially benefiting High Tide Inc.'s financial performance.

• The move is seen as a positive step towards supporting the growth of a legal cannabis sector in the U.S. and displacing the illicit market, which could create new opportunities for companies like High Tide Inc.

• The development is expected to have positive implications for the company's international prospects, with High Tide Inc. aiming to become a top five multi-state operator in the U.S., in light of recent regulatory changes in Germany.

Negative

• None.

CALGARY, AB, April 30, 2024 /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, welcomes today's confirmation by the United States Department of Justice that the Attorney General has proposed the reclassification of cannabis to a Schedule III substance, something that will initiate a formal rule making process as prescribed by Congress in the Controlled Substances Act.

"Today's news marks a historic moment for cannabis reforms in the United States, and we commend the Biden administration for taking this important step," said Raj Grover, Founder and Chief Executive Officer of High Tide.

High Tide's operations in the U.S. are not plant-touching, however reclassifying cannabis from Schedule I to Schedule III of the Controlled Substances Act will change the Internal Revenue Code, which will allow companies that are, to deduct business expenses from gross income.

"Rescheduling will support the growth of a legal, legitimate sector in the U.S. that will displace the illicit market. In the coming days, we will engage with the key financial exchanges to understand how this news might change their listing policies. Coming on the heels of Germany's partial adult use legalization announcement in March, this development makes me even more excited about our international prospects, including our eventual goal of becoming a top five multi-state operator in the US," added Mr. Grover.

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 and is the second-largest cannabis retailer in North America by store count¹. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including:

Bricks & Mortar Retail: Canna Cabana™ is the largest non-franchised cannabis retail chain in Canada, with 168 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario and growing. In 2021, Canna Cabana became the first cannabis discount club retailer in North America.

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1 As reported by ATB Capital Markets based on store counts as of February 8, 2024

Retail Innovation: Fastendr™ is a unique and fully automated technology that integrates retail kiosks and smart lockers to facilitate a better buying experience through browsing, ordering and pickup.

E-commerce Platforms: High Tide operates a suite of leading accessory sites across the world, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com.

Brands: High Tide's industry-leading and consumer-facing brand roster includes Queen of Bud, Cabana Cannabis Co, Daily High Club, Vodka Glass, Puff Puff Pass, Dopezilla, Atomik, Silipipe, Evolution and more.

CBD: High Tide continues to cultivate the possibilities of consumer CBD through Nuleafnaturals.com, FABCBD.com, blessedcbd.de and blessedcbd.co.uk.

Wholesale Distribution: High Tide keeps that cannabis category stocked with wholesale solutions via Valiant™.

Licensing: High Tide continues to push cannabis culture forward through fresh partnerships and license agreements under the Famous Brandz™ name.

High Tide consistently moves ahead of the currents, having been named one of Canada's Top Growing Companies in 2021, 2022 and 2023 by the Globe and Mail's Report on Business Magazine, and was named as one of the top 10 performing diversified industries stocks in both the 2022 and 2024 TSX Venture 50. 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 TSX Venture Exchange 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.

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: the reclassification of cannabis on the timeline announced by the Attorney General, and the goal of the Company becoming a top 5 multi-state operator. Readers are cautioned to not place undue reliance on forward-looking information. 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 is the impact of the Biden administration's move on High Tide Inc.?

The move to reschedule cannabis from Schedule I to Schedule III could benefit High Tide Inc. by potentially allowing the deduction of business expenses.

How does the reclassification of cannabis affect High Tide Inc.'s operations in the U.S.?

High Tide Inc.'s operations in the U.S. are not plant-touching, but the reclassification could change the Internal Revenue Code, impacting the company's ability to deduct business expenses.

What is High Tide Inc.'s goal in light of the cannabis rescheduling?

High Tide Inc. aims to become a top five multi-state operator in the U.S., leveraging the potential growth in the legal cannabis sector and international prospects.

How does the reclassification of cannabis to Schedule III benefit the industry?

The reclassification is expected to support the growth of a legal, legitimate cannabis sector in the U.S., potentially displacing the illicit market and creating new opportunities for companies.

What is the significance of the Department of Justice's confirmation for High Tide Inc.?

The confirmation marks a historic moment for cannabis reforms in the U.S., with High Tide Inc. commending the Biden administration for the important step towards rescheduling cannabis.