High Tide opens new Canna Cabana store in Scarborough

Executive Summary

• High Tide Inc. opened a new Canna Cabana retail location in Scarborough, Ontario, bringing its total store count to 219 locations across Canada (95 in Ontario).
• The company granted stock options and Restricted Stock Units (RSUs) to employees, consultants, directors, and officers, constituting a related party transaction under Multilateral Instrument 61-101.
• The Scarborough location is strategically positioned on Kingston Road with high visibility and limited local competition, replacing a previously successful Rockwood Cannabis site.

Key Details

• Store Opening:
  • Location: 3148 Kingston Rd., Scarborough, Ontario.
  • Status: Opened for business on Feb. 9, 2026.
  • Total Footprint: 219 Canna Cabana locations in Canada; 95 in Ontario.
  • Site Strategy: Located on a major east-west thoroughfare with high daily traffic; serves a dense residential area with limited nearby cannabis competition.
  • Predecessor: Previously occupied by Rockwood Cannabis, which had a strong performance history in the market.
• Equity Grants:
  • Stock Options:
    • Quantity: 145,500 common shares.
    • Recipients: Certain employees and consultants.
    • Exercise Price: $3.22 per share.
    • Expiration: Feb. 6, 2029.
    • Vesting: Over two years.
  • Restricted Stock Units (RSUs):
    • Quantity: 1,300,530 RSUs.
    • Recipients: Directors, officers, employees, and consultants.
    • Vesting Schedule:
      • 48% vests on Feb. 6, 2027.
      • 26% vests on Feb. 6, 2028.
      • 26% vests on Feb. 6, 2029.
    • Terms: Each RSU entitles the holder to acquire one common share upon vesting.
  • Regulatory Context:
    • Grants made under the omnibus plan effective June 2, 2022.
    • Directors received 795,106 RSUs, triggering related party transaction rules under MI 61-101.
    • Exempt from formal valuation and minority shareholder approval as the transaction value does not exceed 25% of market capitalization.
    • No material change report filed >21 days prior, deemed reasonable under the circumstances.

Notable Quotes

• "This store opening reflects our continued focus on disciplined expansion and our commitment to opening locations that meet our strict financial and operational criteria... Situated in a dense and growing neighbourhood, this location represents a compelling opportunity to further strengthen our Ontario footprint through a well-positioned site with a strong history of retail performance." — Raj Grover, Founder and CEO
• "We look forward to welcoming this store into the Canna Cabana network, and leveraging our proven operating model, pricing leadership and loyalty ecosystem to drive incremental performance." — Raj Grover, Founder and CEO