High Tide, Inc. · TSXV:HITI
High Tide — Investor Presentation (November 2020)
23 slides from High Tide's investor presentation, Nov 3, 2020
Slide 1: Investor Presentation November 2020
INVESTOR PRESENTATION NOVEMBER 2020 Over 10 Years in Business Consumer-Oriented Cannabis Enterprise Retail-Focused Growth Initiatives
Slide 2: Disclaimer
DISCLAIMER F O R W A R D - L O O K I N G S TAT E M E N T S This presentation does not constitute an “offering memorandum” capital and operating costs, and all economic analysis derived economic conditions and proposed courses of action, based on by High Tide Inc. (“High Tide” or the “Company”) as su
Slide 3: Company Snapshot
C O M PA N Y S N AP S H O T High Tide is a retail-focused cannabis corporation enhanced by the manufacturing and distribution of cannabis lifestyle accessories: Stock Symbols CSE:HITI | OTC:HITIF | FRA:2LY Share Price1 $0.17 RETAIL SEGMENT: Average Daily Volume2 786,394 • Over 10 years focused on th
Slide 4: Recent Financial Highlights
R E C E N T F I N A N C I A L H I G H L I G HT S ( I N T H O U S A N D S O F C A D ) Fiscal 2018 4Q19 1Q20 2Q20 3Q20 Summary Income Statement (Audited) (Audited) (Unaudited) (Unaudited) (Unaudited) In 2Q20, HITI became the Revenue $8,749 $11,409 $13,659 $19,572 $23,204 first Canadian public cannabis
Slide 5: Established in All Downstream Markets
E S TA B L I S H E D I N A L L D O W N S T R E A M M A R KE T S 1 0 + Y E A R S O F O P E R AT I O N S ; 5 V E R T I C A L LY - I N T E G R AT E D B U S I N E S S E S B R I C K S & M O R TA R ONLINE CANNABIS A C C E S S O R I E S O N LY CBD FOCUSED & ACCESSORIES RETAIL One of Canada’s largest Locati
Slide 6: Vision, Strategy, Goals
VISION To provide the full spectrum of best-in-class products and services for cannabis consumers, while growing organically and through acquisitions, to become the world’s premier retail-focused and vertically-integrated enterprise S T R AT E G Y D I F F E R E N T I AT I O N ACCRETIVE GROWTH CONTIN
Slide 7: Timeline of Milestones
T I M E L I N E O F M I L E S TO N E S 34 Active Locations Founded Listed as HITI on Founded Dec. 17, 2018 Founded KushBar Co-founded 2009 2012 2018 2019 2020 Acquired Invested $4.5 MM Co-founded 3 Active Locations Founded Founded Invested $10 MM Combination Announced 7
Slide 8: Recent Corporate Highlights
RECENT CORPORATE HIGHLIGHTS November 3, 2020 October 28, 2020 September 22, 2020 High Tide Unites Wholesale Businesses Meta Growth Shareholders Approve High Tide and Namaste Technologies Add Under Valiant Distribution and Appoints Business Combination with High Tide to Recreational Cannabis Products
Slide 9: Transaction Rationale
T R A NS AC T I O N RAT I O N AL E OPERATIONAL METRICS (COMBINED PRO FORMA) FINANCIAL METRICS (COMBINED PRO FORMA) 62 115 $148M 38% Store Count(1) Store Count Revenue Gross Margin Current (Dec-21) (Last Quarter Annualized) (Last Quarter Annualized) • Creates Canada’s largest • Growth plans include n
Slide 10: Transaction Summary
T R A NS AC T I O N S U MM A RY • High Tide to acquire all of the issued and outstanding common shares of Meta Growth (the “Transaction”) Proposed • Court approved statutory plan of arrangement Transaction • Pro forma ownership of 54.375% for High Tide and 45.625% for Meta Growth (on an as converted
Slide 11: The Rising Tide of Cannabis
T H E RI S I N G T I D E O F C A NN A B I S R E TA I L C A N N A B I S M A R K E T S I Z E Multi-billion market in Canadian cannabis consumption1 $4.1 Billion in 2021 MANUFACTURING & WHOLESALE DISTRIBUTION R E TAI L EXPERIENCED. WELL POSITIONED. EXECUTING ON GROWTH. The biggest opportunity in Canadi
Slide 12: Canna Cabana
RETAIL C A N NA C A BA N A B E C O M I N G C A N A D A ’ S L A R G E S T R E TA I L C A N N A B I S N E T W O R K Canada’s One-Stop Cannabis Shop • 34 locations now open in the provinces of Alberta, Ontario & Saskatchewan Current & Projected • Highest average rating by independent Store Counts custo
Slide 13: KushBar
RETAIL K u s h Ba r S E C O N D R E TA I L C A N N A B I S B U S I N E S S : M O D E R N – O P E N – R E L A X E D First locations opened in Alberta in September & October 2019 Third location opened in May 2020 As at Aug. Current 2020 Stores Open Permits Leases AB 3 3 3 ON 0 0 5 Total 3 3 8 13
Slide 14: Grasscity
RETAIL G RA S S CI T Y WORLD’S BEST KNOWN ONLINE HEAD SHOP World’s top accessories Large U.S. Customer Base Forums & Social Media e-retailer • 20-year history as online store • Visitors: 76% United States; 9% • Over 34 million unique users in • 23.6 million site visits expected in 2020 United Kingdo
Slide 15: Grasscity – A Strong Strategic Fit
RETAIL G RA S S CI T Y – A S T R O NG S T R AT E G I C F I T MAN UFAC TU R I N G DISTRIBUTION R E TA I L • Design & Production • Optimized Logistics; ship from • Established Online • Brand Licensing North America to local • SEO & Social Media customers • Multiple Warehouses Margin expansion through
Slide 16: Valiant Distribution
WHOLESALE VA L I A N T DI S T R I B U T I O N Distribution network Manufacturing contracts 10 Years >5,000 SKUs extends from our with industry leading Experience in the design Extensive product 27,000 sq. ft. facility in factories in China, the and branding of cannabis catalog with 75% Calgary, AB U
Slide 17: Wholesale: Celebrity Licenses
WHOLESALE First to secure licenses from movie studios, musicians and other celebrities for smoking accessories CELEBRITY LICENSES: • Snoop Dogg Pounds • Cheech & Chong’s Up in Smoke • Trailer Park Boys • Kevin Smith • Guns N’ Roses • Hellboy • The Beach Bum • Radio Days • The Fabulous Furry Freak Br
Slide 18: Wholesale: Our Products
WHOLESALE SNOOP DOGG OUR PRODUCTS
Slide 19: Strategic Partners
S T R AT E G I C PA RT N E R S N O TA B L E I N V E S T O R S : LEGAL: FINANCE: AUDITOR: S E C U R I T Y: T E C H N O L O G Y: G RO W T H B Y A C Q U I S I T I O N Goal of growing the business by acquisition, domestically as well as in the US and EU, through various channels: Industry partnerships a
Slide 20: Management Team, Board of Directors, Advisors
BOARD OF MANAGEMENT TEAM DIRECTORS ADVISORS Secretary-Treasurer Raj Grover Raj Grover Founder, President & Executive Chairman Shimmy Posen Chief Executive Officer Partner, Garfinkle Biderman LLP Nader Ben Aissa External Legal Counsel Rahim Kanji Strategic Advisors Chief Financial Officer Nitin Kaush
Slide 21: Shares Outstanding
S H A R E S O U TS TA N D I N G As at Share Capitalization Table November 1, 2020 Common Shares - Issued and Outstanding 240,090,196 Potential Shares from Stock Options1 9,310,000 Potential Shares from Exercise of Warrants2 131,064,114 Potential Shares from Conversion of Unsecured Debentures3 39,027
Slide 22: Why Invest?
WHY INVEST? COMPELLING INVESTMENT OPPORTUNITY IN A R E TA I L - F O C U S E D C A N N A B I S L E A D E R The perspective of a manufacturer, Strong wholesale and retail infrastructure distributor and retailer on the hottest with a focus on sustainable growth across cannabis products and accessories.
Slide 23: Raj Grover, Founder, President, CEO & Chairman
Raj Grover High Tide Inc. Founder, President, 11127 15th St. NE CEO & Chairman Unit #112 [email protected] Calgary, AB T3K 2M4 (403) 265-4207 1.888.9.420.420 [email protected] HighTideInc.com 23