High Tide Welcomes Historic Executive Order on Cannabis Rescheduling and Medicare Reimbursements for CBD Products

Rhea-AI Summary

High Tide (Nasdaq: HITI) welcomed a White House Executive Order advancing cannabis rescheduling and an announced CMS pilot to allow certain Medicare beneficiaries to receive CBD treatments at no cost, dated Dec 18, 2025. The company said its U.S. CBD brands, NuLeaf Naturals and FAB CBD, will evaluate Medicare-aligned product categories and that it is assessing U.S. licensing pathways to expand its Canna Cabana retail brand while maintaining NASDAQ and TSXV compliance.

The company reengaged an IR agency effective Dec 19, 2025 at a fee of USD $140,000 per month on a fee-for-service basis.

Positive

• Canna Cabana operates 218 domestic and 1 international location
• Company reports a 12% share of the Canadian retail market
• Approximately 4 million U.S. customers in company database
• Reengaged IR Agency for investor communications at USD $140,000/month
• NuLeaf and FAB to evaluate Medicare-aligned CBD product categories

Negative

• Medicare pilot and rescheduling outcomes are not guaranteed
• U.S. Canna Cabana expansion is under evaluation, not committed
• Forward-looking plans subject to risks and may change materially

Key Figures

Current price $2.76 Pre-news trading level

U.S. customers approximately four million Customers in High Tide database

Canna Cabana locations Canada 218 locations Canadian bricks-and-mortar operations

International Canna Cabana 1 location First bricks-and-mortar presence in Germany

Canadian market share 12% Canna Cabana share across five provinces

IR agency fee USD$140,000 per month Fee to IR Agency for investor relations services

Import countries 19 countries Remexian licensed medical cannabis import sources

TSXV Top 50 years 2022, 2024, 2025 Recognized as a top 50 company

Market Reality Check

$2.77 Last Close

Volume Volume 1,171,139 vs 20-day average 643,279 indicates elevated trading interest ahead of this policy-focused release. high

Technical Price at $2.76 sits slightly above the 200-day MA of $2.66, suggesting a modestly constructive longer-term trend pre-announcement.

Peers on Argus 1 Down

Among listed Healthcare/Pharmaceutical Retailer peers, most showed negative moves (e.g., PETS and SCNX declined), while SSY advanced, pointing to mixed sector action rather than a clear, synchronized move tied to this news.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 05	Store expansion	Positive	-3.6%	Announced three new Canna Cabana locations, pushing network toward 218 stores.
Dec 01	International expansion	Positive	+0.4%	Opened first European Canna Cabana flagship in Berlin, expanding into Germany.
Nov 12	Store expansion	Positive	-1.0%	Planned four new Canadian stores, bringing footprint to 215 locations nationally.
Oct 23	Store opening	Positive	+0.6%	New Hamilton, Ontario Canna Cabana store increased Ontario and national footprint.
Oct 21	Loyalty milestone	Positive	-0.3%	Cabana Club four-year celebration with higher member and location targets disclosed.

Pattern Detected

Recent expansion and strategy updates often saw muted or negative immediate price reactions, even when news skewed positive.

Recent Company History

Over the last few months, High Tide focused on expanding its Canna Cabana footprint and deepening its retail strategy. New store openings in Alberta and Ontario lifted the network to 211–218 locations, with management targeting the upper end of its 20–30 new-store goal. The Berlin flagship marked entry into Europe, supported by the Remexian Pharma acquisition and imports from 19 countries. Loyalty growth and higher long-term targets underscored a scale-driven model. Today’s U.S. rescheduling and Medicare CBD angle extends this multi-jurisdiction retail and wellness strategy.

Market Pulse Summary

This announcement highlighted High Tide’s strategic positioning for potential U.S. cannabis rescheduling and a Medicare CBD pilot, leveraging its U.S. CBD brands and database of approximately four million customers. Management outlined a possible Canna Cabana licensing path into the U.S. and Medicare-aligned product development. The company also reengaged an IR agency at USD$140,000 per active month. Investors may watch for concrete U.S. licensing structures, inclusion of products in Medicare Advantage offerings, and any follow-on regulatory developments.

Key Terms

cGMP-certified medical

"building on our existing CGMP-certified operations and large direct-to-consumer"

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.

broad-spectrum medical

"supported by THC-free and broad-spectrum product formats that align with"

A broad-spectrum product is a drug or treatment designed to work against a wide variety of disease-causing organisms or multiple subtypes of a condition rather than targeting a single species or strain. For investors, broad-spectrum approaches can mean a larger potential market, faster clinical adoption because precise diagnosis may be less critical, but also higher regulatory scrutiny and competition; think of it like a universal remote that controls many devices instead of one specific model.

Medicare Advantage medical

"inclusion within Medicare Advantage supplemental benefits, building on our existing"

Medicare Advantage is a type of health insurance plan offered by private companies that covers services traditionally provided by government-run Medicare. Think of it as a bundled package that combines hospital, doctor, and other medical care into one plan, often with added benefits. For investors, it matters because the popularity and profitability of these plans can influence healthcare companies and the broader health insurance industry.

Medicare reimbursements regulatory

"regarding Medicare reimbursements for CBD products represents a particularly"

Medicare reimbursements are the payments the government program Medicare makes to hospitals, doctors, and other providers for covered medical services and supplies; think of them as preset price lists the program uses to pay bills. They matter to investors because changes in those payment rates or rules can directly affect a health care provider’s revenue, profit margins and cash flow, much like a change in the price a retailer receives for its products.

CBD treatments medical

"beneficiaries to receive CBD treatments at no cost."

CBD treatments are medical or wellness products that use cannabidiol, a non-intoxicating compound from the cannabis plant, to relieve symptoms such as pain, inflammation, anxiety or seizures. For investors, they matter because demand, regulation, and scientific evidence shape market size and profitability much like a new consumer product line; changes in laws, clinical results, or safety reports can quickly affect sales, costs, and company valuations.

Medicare-aligned medical

"evaluating Medicare-aligned product categories as a result of today's news."

A product, service, plan, or provider described as "Medicare-aligned" is one that is structured to meet the rules, coverage criteria and payment systems of the U.S. Medicare program, and often targets people eligible for Medicare. Think of it like tailoring a product to fit a club’s membership rules so it can be sold and paid for smoothly. For investors, Medicare alignment signals access to a large, stable customer base but also exposure to government pricing, rules and reimbursement changes that affect revenue predictability.

forward-looking statements regulatory

"CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSThis press release may"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

supplemental benefits medical

"within Medicare Advantage supplemental benefits, building on our existing"

Supplemental benefits are extra services or coverages added on top of a core health or insurance plan, such as vision, dental, prescription discounts, wellness programs, or telehealth access — think of them as optional add‑ons or toppings to a basic policy. For investors, these extras matter because they can make plans more attractive to customers, drive enrollment and revenue, shift claims costs and margins, and change a provider’s competitive position and regulatory obligations.

AI-generated analysis. Not financial advice.

The Company confirms it is assessing U.S. licensing pathways for its Canna Cabana retail brand

NuLeaf Naturals and FAB CBD evaluating Medicare-aligned product categories

CALGARY, AB, Dec. 18, 2025 /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 welcomed the Executive Order issued by the White House advancing the rescheduling of cannabis as well as an announcement that the Centers for Medicare & Medicaid Services is expected to launch a pilot program allowing certain Medicare beneficiaries to receive CBD treatments at no cost.

"This Executive Order marks one of the most consequential steps forward in U.S. federal cannabis reform in more than 50 years. While rescheduling isn't full legalization, the President's announcement regarding Medicare reimbursements for CBD products represents a particularly important development, signaling growing bipartisan momentum toward more common-sense cannabis and CBD policy," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"High Tide has successfully scaled a differentiated retail model across multiple jurisdictions and remains well positioned for the opportunities ahead, particularly in the hemp-derived CBD category," continued Mr. Grover. "Our leading U.S. CBD brands, NuLeaf Naturals and FAB CBD, are developing Medicare-aligned product categories to support potential inclusion within Medicare Advantage supplemental benefits, building on our existing CGMP-certified operations and large direct-to-consumer customer base. In parallel, we are exploring potential structures that may allow us to expand Canna Cabana into the U.S. through licensing, while maintaining compliance with our NASDAQ and TSXV listings. With approximately four million U.S. customers already in our database, we see meaningful long-term potential across both federally compliant CBD wellness and regulated cannabis markets."

Given the imminent move toward cannabis rescheduling, the Company has begun evaluating the feasibility of expanding its flagship bricks-and-mortar retail brand, Canna Cabana, into the United States through a licensing model. In parallel, the Company's hemp-derived CBD brands, NuLeaf Naturals and FAB CBD, are well-positioned to benefit from rescheduling and the potential inclusion of CBD products within Medicare Advantage supplemental benefits. This positioning is supported by THC-free and broad-spectrum product formats that align with compliant Medicare benefit catalogs, CGMP-certified operations, and USDA organic product certifications. NuLeaf's breadth, scale, and premium positioning enable long-term category leadership through a dedicated, Medicare-ready offering, while FAB's purpose-driven, simplified dosing assortment is designed to support faster adoption across Medicare Advantage plans.  Both NuLeaf and FAB will begin evaluating Medicare-aligned product categories as a result of today's news.

In addition, the Company is pleased to announce that it has reengaged IR Agency (the "Agency") effective December 19, 2025, to provide investor relations services, supporting the Company's communications with existing and prospective shareholders, the investment community and stakeholders. Pursuant to the agreement, which begins December 19, 2025, for a term of up to one year, the Agency will undertake activities including communicating information about the Company to the financial community, creating Company profiles, media distribution, and building a digital community, all in compliance with applicable laws. In consideration for these services, the Agency will receive a fee of USD$140,000 per month for months that the Company decides to use the Agency, paid strictly on a fee-for-service basis, consistent with TSX Venture Exchange Policy 3.4 and in proportion to the Company's operational scope and financial resources. The Agency, located in Newark, New Jersey, with Rafael Pereira as the principal, is arm's-length to the Company and neither the Agency nor its principals hold an equity interest in the Company's securities, either directly or indirectly, or the right to acquire any equity interest.

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 218 domestic 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. In 2025 The Company became the first North American cannabis operator to launch a bricks-and-mortar presence in Germany. The Company also owns and operates multiple global e-commerce platforms offering accessories and hemp-derived CBD products.

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 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 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.

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 pilot program will proceed as announced, whether the Company could bring its Canna Cabana brand into the United States through licensing, while maintaining compliance with its NASDAQ and TSXV listings, whether Nuleaf Naturals and FAB CBD will benefit, whether the Company could replicate its success in the United States, and whether further reforms toward full legalization will happen. 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 did High Tide (HITI) announce on Dec 18, 2025 about cannabis rescheduling?

High Tide welcomed a White House Executive Order advancing cannabis rescheduling and noted a CMS pilot for Medicare CBD reimbursements.

How will High Tide's NuLeaf Naturals and FAB CBD respond to the Medicare pilot announced Dec 18, 2025?

Both brands will begin evaluating Medicare-aligned product categories to support potential inclusion in Medicare Advantage supplemental benefits.

Is High Tide planning to expand Canna Cabana into the U.S. following the Dec 18, 2025 announcement?

The company is assessing U.S. licensing pathways for Canna Cabana but has not committed to a definitive expansion.

What investor relations arrangement did High Tide (HITI) disclose on Dec 18, 2025?

High Tide reengaged an IR agency effective Dec 19, 2025, with fees of USD $140,000 per month on a fee-for-service basis.

How many customers and retail locations does High Tide report as of the Dec 18, 2025 release?

The company cites approximately 4 million U.S. customers and Canna Cabana operating 218 domestic and 1 international location.