High Tide Selected by Third Lottery Winner to Help Open Canna Cabana Toronto Retail Cannabis Store
CALGARY, March 21, 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, is pleased to announce that, subject to the approval of the Alcohol and Gaming Commission of Ontario (the "AGCO"), it has been selected to assist with establishing and operating a retail cannabis store by a third winner of one of only 25 opportunities to apply for an operator's licence (the "Third Winner") as a result of the AGCO's Expression of Interest Application Lottery conducted on January 11, 2019 (the "Lottery"). Subsequent to previously announcing that High Tide had been selected to assist two other Lottery winners, the Third Winner acknowledged its need for support and chose High Tide to help open a retail cannabis store at a proposed location in Toronto, Ontario.
Toronto is a dynamic and multicultural metropolis that is home to over 2.7 million people, with almost 6 million people living in the Greater Toronto Area and over 25 million tourists visiting the city each year.
It is an honour to be selected by the Third Winner to assist them with the opening and ongoing operation of their store in Canada's largest city. A retail cannabis store in Toronto is an incredible opportunity to showcase our ability to execute, ten years of retail experience and operational expertise
stated Raj Grover, President and Chief Executive Officer of High Tide.
As the realities of a compressed schedule and complex project became clear, the Third Winner realized that they would benefit from our help. We are humbled to be in this position and embrace the opportunity to embark on this great business relationship
added Mr. Grover. The Canna Cabana brand is quickly becoming a major national retail cannabis banner with ten current locations across Alberta and three variations adopted for use in major Ontario markets.
In Ontario, High Tide is established 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 has 26 incremental 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.
Additionally, pursuant to commercial agreements relating to a separate AGCO cannabis retail lottery winner, the Company will issue restricted warrants exercisable for the purchase of 4,000,000 of its common shares at $0.40 per common share. The restricted warrants are part of the Company's consideration for the acquisition of the entity operating a fully-licensed cannabis retail store and shall only vest upon the closing of the potential acquisition, which is subject to AGCO approval.
Lastly, on February 22, 2019 the Company added Mr. Alex Mackay as its new Chief Operating Officer. Mr. Mackay joined High Tide after a 21-year career at Shaw Communications, one of Canada's largest telecommunications firms. Known as an adaptable leader with a track record of driving breakthrough results, Alex has extensive operational experience with previous roles including but not limited to Senior Director of Contact Centers and Retail Operations, National Director of Field Support Operations and National Sales Director.
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.