High Tide surpasses two million Cabana Club members

Executive Summary

• High Tide Inc. reports significant membership growth, surpassing 2 million members in its Cabana Club loyalty program and exceeding 104,000 paid Elite members nationwide.
• The company has filed a preliminary short-form base shelf prospectus to replace its existing one expiring on September 3, 2025, establishing a $100-million aggregate offering price for future securities issuance.
• The filing includes a corresponding shelf registration statement with the U.S. SEC under the multijurisdictional disclosure system, providing flexibility for future financing, at-the-market distributions, or acquisitions, though no immediate issuance is planned.

Key Details

• Membership Milestones:
  • Cabana Club membership has officially surpassed 2 million members.
  • Paid Elite tier membership has exceeded 104,000 members.
  • CEO Raj Grover cited these figures as proof of the "discount club model" driving traffic, margin, and differentiation.
• Prospectus Filing Details:
  • Filed a preliminary short-form base shelf prospectus to replace the final prospectus dated August 3, 2023.
  • The new prospectus will be effective for a 25-month period once finalized.
  • Aggregate offering price limit: $100 million (or equivalent).
  • Securities eligible for issuance: common shares, warrants, units, subscription receipts, debt securities, convertible securities, or any combination thereof.
  • Filed in all Canadian provinces and territories.
  • Filed a corresponding shelf registration statement with the U.S. Securities and Exchange Commission (SEC).
• Use of Proceeds & Strategy:
  • Net proceeds may be used for general corporate purposes, capital projects, internal expansion, or acquisitions of businesses/assets.
  • The company may utilize the prospectus for at-the-market distributions via the TSX Venture Exchange, Nasdaq, or other markets.
  • Current Status: The company currently has no immediate plans to issue any securities under this prospectus and may never proceed with an issuance.
• Company Operations Context:
  • High Tide operates 202 current Canna Cabana locations across British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.
  • Expansion target: Over 300 Canna Cabana locations nationwide.
  • Additional business segments include Fastendr (automated retail kiosks), e-commerce accessories (Grasscity, Smokecartel, etc.), CBD brands, and wholesale distribution.

Notable Quotes

• "Crossing two million Cabana Club members and surpassing 100,000 Elite members are landmark achievements for High Tide and clear proof points of the power behind our unique discount club model," said Raj Grover, founder and chief executive officer of High Tide.
• "Our rapidly growing membership base fuels the loyalty engine that drives traffic, margin and differentiation. As we continue our expansion towards over 300 Canna Cabana locations across the country, I'm confident our Cabana Club and Elite programs will remain key drivers of growth as we expand our national footprint and continue elevating the cannabis retail experience."