High Tide Announces Both Cannabis Retail Store Lottery Counterparts in Ontario Proceeding to Eligibility Phase of AGCO Review
CALGARY, March 5, 2019 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (CSE:HITI) (Frankfurt:2LY), an Alberta-based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that both of the applications for retail store authorizations submitted by its associated beneficiaries (the "Winners") of the Expression of Interest Application Lottery (the "Lottery") are proceeding to the eligibility phase of the Alcohol and Gaming Commission of Ontario ("AGCO") review process. At this stage, the applications will be assessed for current and ongoing compliance with the Cannabis License Act, 2018 and its regulation, with subsequent stages involving operator licensing and store authorization. As previously announced, High Tide was selected by the Winners to assist each party in establishing and operating a cannabis retail store in Ontario.
The stores will be located in the Lottery's North Region in Sudbury (the "Sudbury Store") and in the West Region in Hamilton (the "Hamilton Store") as each municipality has demonstrated openness and support for the entry of the recreational cannabis industry for adult use. "With High Tide's assistance, this great news enables the Winners to continue working toward opening their stores in view of the AGCO's target date of April 1, 2019," said Raj Grover, President and Chief Executive Officer of High Tide. "The Hamilton Store is expected to serve a large population surrounding the west end of Lake Ontario, while the Sudbury Store is also expected to serve an expanded geographic area based on its strategic location. We are very excited to help the Winners offer customers an approachable yet responsible retail experience," added Mr. Grover. High Tide's decade of retail experience and the Canna Cabana brand were deemed to be valuable to both of the Winners.
In Ontario, High Tide has an established commercial presence as one of the few suppliers of smoking accessories to the Ontario Cannabis Store and is currently maintaining approximately 20 conditional leases for future cannabis retail stores across Ontario, when permitted. In Alberta, High Tide currently has 10 operating Canna Cabana outlets and 26 more Canna Cabana and KushBar locations under various stages of development and construction. The Company expects to receive the one remaining development permit required to achieve Alberta Liquor, Gaming and Cannabis' effective maximum of 37 retail cannabis locations in the near term. Rounding out its growing Canadian footprint, High Tide has signed letters of intent to acquire two separate cannabis retail locations in Saskatchewan and also expects to obtain the maximum of eight cannabis retail stores in British Columbia.
High Tide is an Alberta-based, downstream cannabis corporation focused on the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products. It is a vertically-integrated company in the Canadian cannabis market, with portfolio subsidiaries including RGR Canada Inc., Famous Brandz Inc., Kush West Distribution Inc., Smoker's Corner Ltd., Grasscity.com, Canna Cabana Inc. and the majority of KushBar Inc. High Tide's strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) and FSD Pharma Inc. (CSE: HUGE) (OTC: FSDDF) (FRA: 0K9).
Representing the core of High Tide's business, RGR Canada Inc. is a high-quality and innovative designer, manufacturer and distributor of cannabis accessories. Famous Brandz Inc. is a dominant manufacturer of licensed lifestyle accessories, through partnerships with celebrities and entertainment companies including Snoop Dogg and Paramount Pictures. Famous Brandz' products are sold to wholesalers and retailers around the world. Founded in 2009 and approved by the Canadian Franchise Association, Smoker's Corner Ltd. is among Canada's largest counter-culture chains with 12 locations. Kush West Distribution is in the process of becoming a cannabis wholesaler in the province of Saskatchewan. Based in Amsterdam since 2000, Grasscity.com is the world's preeminent and most searchable online retailer of smoking accessories and cannabis lifestyle products with approximately 5.8 million site visits annually. With the deregulation of recreational cannabis for adult use across Canada, Canna Cabana Inc., with ten current locations, is in the process of becoming a sizeable retail brand with a sophisticated yet playful customer experience, while KushBar Inc. is a retail concept that will also be focused on the valued Canadian cannabis consumer.
Certain statements in this news release are forward-looking information or forward-looking statements. Such information and statements, referred to herein as "forward-looking statements" are made as of the date of this news release or as of the date of the effective date of information described in this news release, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (generally, forward-looking statements can be identified by use of words such as "outlook", "expects", "intend", "forecasts", "anticipates", "plans", "projects", "estimates", "envisages, "assumes", "needs", "strategy", "goals", "objectives", or variations thereof, or stating that certain actions, events or results "may", "can", "could", "would", "might", or "will" be taken, occur or be achieved, or the negative of any of these terms or similar expressions, and other similar terminology) are not statements of historical fact and may be forward-looking statements.
Such forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to the ability of High Tide to execute on its business plan and that High Tide will receive one or multiple licenses from Alberta Gaming, Liquor & Cannabis, British Columbia's Liquor Distribution Branch or the Saskatchewan Liquor and Gaming Authority permitting it to carry on its Canna Cabana Inc. and KushBar Inc. businesses. High Tide considers these assumptions to be reasonable in the circumstances. However, there can be no assurance that any one or more of the government, industry, market, operational or financial targets as set out herein will be achieved. Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements.
The forward‐looking statements contained herein are current as of the date of this news release. Except as required by law, High Tide does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forward-looking statement, nor does it intend, or assume any obligation, to update or revise these forward-looking statements to reflect new events or circumstances. Any and all forward-looking statements included in this news release are expressly qualified by this cautionary statement, and except as otherwise indicated, are made as of the date of this news release.
SOURCE High Tide Inc.