High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (July 2021)
20 slides from High Tide's investor presentation, Jul 5, 2021
Slide 1: High Tide Investor Presentation
THE RISING TIDE OF CANNABIS HIGH TIDE INVESTOR PRESENTATION JULY 2021 Over 10 Years in Business Unique and Diversified Cannabis Ecosystem Retail-Focused Growth Initiatives 1
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation does not constitute an “offering and all economic analysis derived from such estimates assurance that such information will prove to be memorandum” by High Tide Inc. (“High Tide” or the and forecasts. accurate as actual results and future event
Slide 3: Company Snapshot
COMPANY SNAPSHOT STOCK SYMBOLS TSXV:HITI | NASDAQ:HITI | High Tide is a retail-focused cannabis corporation FRA:2LYA enhanced by the manufacturing and distribution of SHARE PRICE1 consumption accessories: $9.33 AVERAGE DAILY VOLUME2 510K RETAIL SEGMENT: Over 10 years focused on the cannabis consumer
Slide 4: Unique Diversified Ecosystem Across the Value Chain - By Geography & Segment
UNIQUE DIVERSIFIED ECOSYSTEM ACROSS THE VALUE CHAIN - BY GEOGRAPHY & SEGMENT Retail Wholesale BRICKS & MORTAR ONLINE Leading network of ACCESSORIES U.S. CBD Global designer, manufacturer and 89 recreational cannabis distributor of proprietary designed Own the world’s two FABCBD is a leading retail s
Slide 5: Completely Transformed Across All Key Areas Over the Past Six Months
COMPLETELY TRANSFORMED ACROSS ALL KEY AREAS OVER THE PAST SIX MONTHS OPERATIONAL SIZE / SCALE / PROFITABILITY: • Number of stores gone from 67 at the end of December 2020 to 89 as at July 2, 2021 (long-term target is 200) • Trailing Revenue increased from $70MM to $128MM (current pro forma run rate
Slide 6: Recent Financial Highlights (in thousands of CAD)
RECENT FINANCIAL HIGHLIGHTS (IN THOUSANDS OF CAD) SUMMARY INCOME STATEMENT In 2Q20, HITI became the first Canadian public cannabis retailer to report positive 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) Adjusted EBITDA REVENUE $13,715 $20,570
Slide 7: Retailers Are Not LPs
RETAILERS ARE NOT LPS • Years into legalization, many licensed producers are facing excess supply, inventory writedowns, shuttered facilities, goodwill impairments and negative EBITDA. • Retailers often benefit from issues faced by LPs, and generally experience completely different dynamics (revenue
Slide 8: A Leading Retail Cannabis Network Across Canada
RETAIL A LEADING RETAIL CANNABIS NETWORK ACROSS CANADA • Industry leading Cabana Club loyalty plan offering members instant discounts at checkout, and promotions direct to their phone – over 50% of store revenue comes from club members • ‘Cabanalytics’ data subscription selling retail insights to in
Slide 9: Retail: Store Counts by Province
RETAIL • Stores laid out in an open environment, allowing customers to view products • Walls surrounded by up to 700 SKUs of accessories • Employee training program results in premier customer service STORE COUNTS BY PROVINCE PROVINCE CURRENT STORES OPEN AB 59 ON 19 MB 8 SK 3 TOTAL 89 Store counts r
Slide 10: Grasscity - World's Best Known Online Head Shop
RETAIL GRASSCITY - WORLD’S BEST KNOWN ONLINE HEAD SHOP WORLD’S TOP ACCESSORIES LARGE U.S. CUSTOMER BASE FORUMS & SOCIAL MEDIA E-RETAILER • Founded in 2000, High Tide • Visitors: 77% North America; 9% • Over 34 million unique users in acquired 100% in 2018 United Kingdom; 14% Other Grasscity Forums s
Slide 11: Smoke Cartel
RETAIL SMOKE CARTEL • Founded in 2013, High Tide acquired 100% in March 2021 • Proprietary drop-shipping technology seamlessly connects brands and vendors with Smoke Cartel’s growing customer base • Carries over 15,000 SKUs on the platform without holding any inventory • In 2020, approximately 42 mi
Slide 12: FAB CBD
RETAIL FAB CBD • Founded in 2017, High Tide acquired 80% in May 2021 with an option to acquire the remaining 20%. • One of the most popular brands for hemp-derived CBD products across the U.S. • FABCBD carries multiple exclusive product formulations that are manufactured by contract manufacturers ac
Slide 13: CBDcity
RETAIL CBDcity Featuring some of the best U.S. CBD products & brands 13
Slide 14: Valiant Distribution
WHOLESALE VALIANT DISTRIBUTION Distribution network Manufacturing 10 YEARS >5,000 SKUs extends from our contracts with industry Experience in the Extensive product network of facilities in leading factories in design and branding of catalog with 75% Calgary, Las Vegas and China, the United in demand
Slide 15: Celebrity Licenses
WHOLESALE CELEBRITY LICENSES First to secure licenses from movie studios, musicians & other celebrities for consumption accessories including: 15
Slide 16: Our Products
WHOLESALE OUR PRODUCTS 16
Slide 17: Future Growth Drivers
FUTURE GROWTH DRIVERS • FUTURE ACQUISITIONS – TYPICAL TARGET CRITERIA: • Complementary to our existing ecosystem • Immediately accretive to earnings (vs turnaround stories) • Increased store count in Canada (long-term target of 200 stores) • Introducing a white label program for our retail network •
Slide 18: Executive Team
EXECUTIVE TEAM MANAGEMENT TEAM BOARD OF DIRECTORS Raj Grover Omar Khan Founder, President & Chief Senior Vice President Raj Grover Executive Officer of Corporate & Public Executive Chairman Affairs Joy Avzar Andrea Elliott Rahim Kanji EVP Direct to Consumer, Vice President & Legal Chief Financial Of
Slide 19: Shares Outstanding
SHARES OUTSTANDING “HITI” “HITI” “2LYA” LISTED ON LISTED ON LISTED ON SHARE CAPITALIZATION TABLE AS AT JUNE 25, 2021 COMMON SHARES - ISSUED AND OUTSTANDING 49,646,702 POTENTIAL SHARES FROM EXERCISE OF WARRANTS 7,991,784 POTENTIAL SHARES FROM STOCK OPTIONS AND RSUS 1,907,963 POTENTIAL SHARES FROM CON
Slide 20: Thank You
THE RISING TIDE OF CANNABIS THANK YOU Raj Grover High Tide Inc. Founder, President, 11127 15th St. NE CEO & Executive Chairman Unit #112 [email protected] Calgary, AB T3K 2M4 T (403) 265.4207 TF 1.888.9.420.420 hightideinc.com 20