High Tide Stock Price, News & Analysis

High Tide Inc. (HITI) is a cannabis-focused retail and distribution company that trades on Nasdaq, the TSX Venture Exchange, and the Frankfurt Stock Exchange. According to the company, it is a "community-grown, retail-forward cannabis enterprise" built around the cannabis consumer, with operations that span cannabis retail, cannabis accessories, hemp-derived CBD products, and medical cannabis distribution. High Tide is active in the Canadian cannabis market and in international markets through both physical stores and e-commerce platforms.

The company describes itself as a downstream-focused retailer of cannabis products, distributor, and seller of smoking accessories and cannabis lifestyle products. It has a portfolio of brands and platforms, including its flagship Canna Cabana retail chain and various e-commerce properties. High Tide reports that it operates through two main segments: bricks-and-mortar retail and e-commerce, with bricks-and-mortar generating the majority of its revenue. Geographically, it has stated that most of its revenue comes from Canada, followed by the United States and other international markets.

Canna Cabana retail network

A core element of High Tide’s business is its wholly owned subsidiary Canna Cabana, which the company describes as the largest cannabis retail chain in Canada and the second-largest cannabis retail brand globally. High Tide reports that Canna Cabana operates more than 200 locations across Canada, with store counts referenced at 210, 211, 215 and 218 locations in recent company communications. These stores are located in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.

The company states that Canna Cabana holds a growing 12% share of the Canadian retail cannabis market across the five provinces in which it operates. In 2021, Canna Cabana was described by High Tide as the first cannabis discount club retailer in the world, reflecting a value-focused retail model built around its Cabana Club loyalty program. High Tide has highlighted that it has surpassed millions of Cabana Club members in Canada and that this loyalty base is an important part of its retail strategy.

International expansion and German presence

High Tide has expanded beyond Canada into Europe through its Canna Cabana brand and medical cannabis distribution activities. The company has opened an international Canna Cabana location in Berlin, Germany, focused on cannabis accessories and consumer lifestyle goods. High Tide has described this Berlin store as its first bricks-and-mortar Canna Cabana presence in Europe and in the German market, and has characterized Germany as a key market within its broader European retail strategy.

In addition to retail, High Tide has entered the German medical cannabis market through Remexian Pharma GmbH, in which it has acquired a majority stake. The company describes Remexian as a leading German pharmaceutical company built for the importation and wholesale of medical cannabis products at affordable prices. High Tide states that Remexian is licensed to import medical cannabis from 19 countries, including Canada, and that among German medical cannabis procurers, Remexian has one of the most diverse global reaches.

E-commerce and hemp-derived CBD

Beyond physical stores, High Tide reports that it owns and operates multiple global e-commerce platforms. These platforms focus on cannabis accessories and hemp-derived CBD products. The company has also identified NuLeaf Naturals and FAB CBD as leading U.S. CBD brands within its portfolio, and has indicated that these brands operate with CGMP-certified operations and USDA organic product certifications. High Tide has discussed the potential for these brands to develop product categories aligned with evolving U.S. healthcare and reimbursement frameworks for CBD products.

Through these online platforms and brands, High Tide extends its reach to customers beyond the jurisdictions where it operates physical stores. The company positions this e-commerce activity as a complementary component to its bricks-and-mortar retail and medical cannabis distribution businesses.

Business model and segments

According to its disclosures, High Tide’s business model is built around fully integrated operations across what it describes as "all components of cannabis." This includes:

• Retail: Canna Cabana cannabis retail stores in Canada and an international Canna Cabana location in Germany, focused on recreational cannabis products (where permitted) and consumption accessories for adult use.
• E-commerce: Global online platforms that sell cannabis accessories and hemp-derived CBD products, including U.S. CBD brands such as NuLeaf Naturals and FAB CBD.
• Medical cannabis distribution: Importation and wholesale of medical cannabis products in Germany through Remexian Pharma GmbH.

The company has identified two reportable operating segments: bricks-and-mortar and e-commerce. Bricks-and-mortar includes Canna Cabana retail stores and generates the majority of revenue, while e-commerce includes online platforms and related brands.

Market positioning and recognition

High Tide characterizes itself as a retail-forward cannabis platform with scale in Canada and growing international operations. It has described Canna Cabana as the largest cannabis retail chain in Canada and has noted that it became the first North American cannabis operator to launch a bricks-and-mortar presence in Germany. The company has also stated that it has achieved a significant share of the Canadian retail cannabis market in the provinces where it operates.

High Tide has received several external recognitions that it cites in its communications. It has been named one of Canada’s Top Growing Companies by the Globe and Mail’s Report on Business for multiple consecutive years, and it has been recognized as a top 50 company by the TSX Venture Exchange in several years. The company has also reported that it was ranked number one in the retail category on the Financial Times list of Americas’ Fastest Growing Companies for 2023.

Regulatory filings and listings

As a foreign private issuer with securities listed in the United States, High Tide files reports with the U.S. Securities and Exchange Commission on Form 40-F and furnishes current information on Form 6-K. Recent Form 6-K filings have attached company news releases as exhibits, covering topics such as store openings, participation in investor conferences, and corporate milestones. The company also files disclosure documents on SEDAR+ in Canada.

High Tide’s shares trade under the symbol HITI on Nasdaq and the TSX Venture Exchange, and under the symbol 2LYA on the Frankfurt Stock Exchange. Through these listings and its ongoing disclosure, the company provides investors with information about its operations, strategy, and financial performance.

Historical growth and strategy

In its public statements, High Tide has emphasized growth in its Canna Cabana store count and loyalty membership base since the legalization of cannabis in Canada. The company has highlighted that it expanded from a small initial store base to more than 200 locations, and that it has achieved cumulative sales milestones in Canada. It has also described a strategy focused on disciplined capital allocation, self-funded growth through free cash flow, and careful selection of store locations in what it views as high-potential markets.

Internationally, High Tide has outlined a strategy that combines accessories-focused retail, e-commerce, and medical cannabis distribution to establish a presence in markets such as Germany. The company has indicated that it monitors regulatory developments in these markets and considers potential pathways for expanding its brands, including Canna Cabana, within applicable legal and listing requirements.

Use of loyalty and discount club model

A distinctive element that High Tide highlights is the Canna Cabana discount club model and the Cabana Club loyalty program. The company has described Canna Cabana as the first cannabis discount club retailer in the world, and it reports that it has built a large base of Cabana Club members in Canada. High Tide positions this model as central to its value-focused retail approach, aiming to drive repeat visits and customer loyalty across its store network.

According to company communications, the combination of a discount club structure, a large loyalty program, and a broad store footprint is intended to support same-store sales performance and overall revenue growth. High Tide has referenced its loyalty metrics and store productivity in its public updates as indicators of the performance of this model.

Summary

Overall, High Tide Inc. presents itself as a cannabis-focused retail and distribution company with integrated operations across Canadian cannabis retail, international medical cannabis distribution, and global e-commerce for accessories and hemp-derived CBD products. Through its Canna Cabana retail chain, Remexian Pharma GmbH, and various online brands, the company seeks to serve cannabis consumers and medical cannabis markets in Canada, Germany, the United States, and other jurisdictions where it operates.