High Tide Inc.’s (NASDAQ:HITI) (TSXV:HITI) (FSE:2LYA) Cabana Club loyalty program has surpassed the milestone of 515,000 members. This figure represents 110% growth from the 245,000 members the Cabana Club had when the company launched its cannabis discount club model less than seven months ago.
Opening of Canna Cabana store in Kitchener, Ontario
Canna Cabana retail cannabis store located at 1375 Weber Street East in Kitchener, Ontario, has begun selling recreational cannabis products for adult use. This opening represents High Tide’s 121st branded retail location across Canada, and 39th in Ontario, selling recreational cannabis products and consumption accessories.
This store further boosts High Tide’s footprint in the Kitchener-Waterloo Region, which is Ontario’s fifth-largest metropolitan area with a population of over 575,000, and is home to multiple large post-secondary institutions including Wilfred Laurier University, the University of Waterloo, and Conestoga College.
“I know that the last several months have been incredibly difficult in the capital markets, including our own equity performance. As the largest shareholder of High Tide, I have also been feeling the effects of these trying times," stated Raj Grover, president and CEO of High Tide. "Despite these challenges, I have yet to sell a single share, and continue to view High Tide as an undervalued company - a sentiment which is shared by the entire senior management and board of directors of the company. Our business continues to grow further from the highs we set in Q1 2022 and our business fundamentals remain strong, as evidenced by the exponential increase in our Cabana Club membership, which now stands at over 515,000.”
Closing of Crossroads Cannabis acquisition located in Woodstock
The company has completed its acquisition of the final remaining operating cannabis store in Ontario operating under the name Crossroads Cannabis.
The shop is located in Woodstock, Ontario, in a shopping center anchored by a large national home improvement store. The closing of the acquisition, together with the aforementioned opening of the new Canna Cabana store in Kitchener, grows the number of High Tide’s branded retail cannabis stores to 122 across Canada and 40 in Ontario.
The acquisition was completed pursuant to the terms of an asset purchase agreement dated March 2, 2022, as amended on April 22, 2022. High Tide acquired the store for 138,656 common shares of High Tide valued at CA$634,000 ($495,794) at a deemed price of CA$4.573 per High Tide Share, being equal to the discounted market price as of the date the acquisition was initially announced.
The closing of the acquisition remains subject to final approval from the TSXV.
Photo: Courtesy of Tim Foster on Unsplash
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