💸 High Impact

High Tide Continues To Roll

The What - High Tide Inc. (NASDAQ: HITI, TSXV: HITI) has further expanded its position as a dominant cannabis retailer in Canada by opening four new Canna Cabana stores. The new stores are located in Calgary (Douglasdale and Brentwood), Ottawa, and Stoney Creek. These stores expand High Tide’s footprint to 180 locations nationwide, including 65 in Ontario.

High Tide also announced its focus on securing and retaining top talent. The company has granted 204,000 incentive stock options to various employees, consultants, and management. Each option is exercisable at the closing price of the company’s common shares on the TSX Venture Exchange, based on the last trading day immediately before the press release. The decision is wise from an employee alignment and engagement point of view. High Tide’s commitment to attracting and retaining key personnel will support its continued growth.

In Alberta, the Douglasdale store is set in a mature, well-established neighborhood with over 40,000 residents within a three-kilometer radius. This store benefits from high visibility and an existing customer base from its previous retail cannabis operation. The Brentwood store, located in a bustling shopping plaza near the University of Calgary, serves a population of over 56,000 within a three-kilometer radius and occupies a space previously leased by FOUR20 Cannabis.

In Ontario, the Walkley Road store is the fifth Canna Cabana in Ottawa. It is strategically placed in a large shopping plaza along a major roadway, surrounded by national retail chains and serving a dense population of over 180,000 within a five-kilometer radius. The Stoney Creek store, the first in this Hamilton suburb, is situated in a major power center with a mix of internationally recognized retailers and serves over 100,000 residents within a five-kilometer radius.

Raj Grover, Founder and Chief Executive Officer of High Tide, expressed his enthusiasm for this expansion: “I can’t think of a better way to end our third fiscal quarter than by announcing the opening of four new Canna Cabanas, bringing our ever-expanding store count to 180 across Canada and 65 in Ontario. Many of these new stores are part of our organic expansion strategy, which includes onboarding proven locations previously run by competitors through lease takeovers, resulting in minimal store buildout costs. Since January 1, we have already added 18 new Cabanas to our retail portfolio and are confident that we will meet or exceed our previously communicated goal of adding 20 to 30 new locations this year.”

Grover also highlighted the financial prudence behind this growth: “Furthermore, I am thrilled that the majority of this growth has been funded through our strong free cash flow generation from current operations. This approach will propel our future organic growth which should help us continue an upward trajectory both in terms of our store count, but also with respect to overall Canadian retail market share.”

High Tide last released its financial results for Q2 2024 on June 13th, 2024. The earnings were strong, and they also announced arranging for debt financing to assist with additional growth. The next earnings release has yet to be announced but likely will be around September 13th, 2024. Wall Street analysts currently target the total FY 2024 revenue to be $373M USD.

📈 Dog Walkers

Florida Adult Use Gains Major Ally

Amendment 3 in Florida gained a powerful ally yesterday when Sen. Joe Gruters gave his full support for the measure going into the November elections. The former Chairman of the RPOF stated his support stems from conversations he has had with his constituents and that bringing adult use cannabis online is a major function of where we are in society, saying, “it makes sense.”

Full Story Here

Jushi Executes Major Refi

Jushi announced yesterday the terms of a major refinancing to its existing 1st lien credit facility with a $48.5 million term loan. Both Jim Cacioppo and Denis Arsenault, the founders, participated in the financing to the tune of $9 million and $7 million, respectively. These are significant sums, and it’s great to see the OG founders putting their money where their mouth is and doubling down on the long-term success of the company.

PR

The Cannabist Has Approvals In Ohio

The Cannabist announced yesterday that they are fully licensed for adult use in the state of Ohio regarding their cultivation and processing assets. This is a huge move forward and should signify that the official approvals for adult use retail are imminent. We expect to see this market come online by the end of the month at the latest.

🗞️ The News

Arkansas Activists Get Another Month To Collect Signatures For Medical Marijuana Expansion Ballot Initiative

GOP Senator Backs Policy That ‘Treats Marijuana Just Like Tobacco,’ Calling On Feds To ‘Allow This Market To Occur’

Cannabis businesses incorporate reused materials into packaging

Is the future of cannabis in Europe? Q&A with Bloomwell CEO Niklas Kouparanis

Joe Gruters opposes DeSantis & FL GOP in supporting measure legalizing adult cannabis use

Ohio’s Adult-Use Cannabis Dispensary Licenses Now on Deck

📭 Research

Initiating Coverage: Green Thumb Industries - Download Here

Reconfirming Buy Rating: MariMed - Download Here

Initiating Coverage Of Verano Holdings Corp. - Download Here

Initiating Coverage: TerrAscend - Download Here

📺 YouTube

Tilray CEO Irwin Simon Explains Net Revenue Growth I Trade To Black

What we covered:

✅ Florida is at it again, where The Florida Police Chiefs Association (FPCA) and the Florida Sheriffs Association (FSA) are urging voters to reject a marijuana legalization initiative due to concerns about public safety risks, including increased youth use, impaired driving, and illicit operations.

Also, news out of Ohio where The Cannabist Company Holdings (CBOE: CBST) has received approval for adult-use operations, signaling adult use is just about ready to go live.

Additionally, we outline Canadian company MTL Cannabis Corp. (CSE: MTLC) who reported impressive financial results for 2024, with substantial revenue growth and improved margins.

Plus, marijuana stocks and rescheduling news continues to be hot topics leading up to the 2024 presidential election.