INVESTOR PRESENTATION JULY 2020 Over 10 Years in Business Consumer-Oriented Cannabis Enterprise Retail-Focused Growth Initiatives
DISCLAIMER F O RWA R D - L O O K I N G S TAT E M E N T S This presentation does not constitute an “offering memorandum” capital and operating costs, and all economic analysis derived economic conditions and proposed courses of action, based on by High Tide Inc. (“High Tide” or the “Company”) as such term is from such estimates and forecasts. In general, forward-looking management’s assessment of the relevant information currently defined under Canadian securities legislation and confers no information can be identified by the use of forward-looking available. Projections included herein contain forward ‐ looking statutory, contractual or other similar rights of rescission or other terminology such as “plans”, “expects” or “does not expect”, statements and are based on a number of material assumptions action or remedy to any recipient under securities legislation in “projects”, “forecasts”, “budget”, “estimates”, “schedule”, and factors set out above. These projections may also be Canada, the United States or other jurisdiction for “intends”, or variations of such words and phrases or state that considered to contain future oriented financial information or a misrepresentation or otherwise. No securities are being offered certain actions, events or results “may”, “could”, “would”, “might” financial outlook. The actual results of the Company’s operations for sale hereunder. This document does not provide full or “will be taken”, “occur” or “be achieved”. The forward-looking for any period will likely vary from the amounts set forth in these disclosure of all material facts relating to the securities offered. information is based upon factors and assumptions the Company projections, and such variations may be material. See the above Readers must conduct their own analysis and review of the believes is reasonable based on information currently available to for a discussion of the factors that could cause actual results to Company and of the information contained in this presentation them. Forward-looking information is subject to known and vary. The future-oriented financial information and financial and must contact their own professional advisors. unknown risks, uncertainties and other factors that may cause the outlooks contained in this presentation have been approved by actual results, level of activity, performance of the Company to management as of July 24, 2020. Readers are cautioned that any This presentation contains “forward-looking information”. differ from forward-looking information. There can be no such financial outlook and future ‐ oriented financial information Forward-looking information includes, without limitation, assurance that such information will prove to be accurate as contained herein should not be used for purposes other than statements regarding macroeconomic factors, future demand and actual results and future events could differ materially from those those for which it is disclosed herein. supply dynamics for cannabis, production and development anticipated in such statements. Accordingly, readers should not forecasts and timelines, estimates as to the demand for cannabis place undue reliance on forward-looking information. The These materials may contain inaccuracies or typographical and cannabis paraphernalia, future cannabis prices, solutions to Company does not undertake to update any forward-looking errors. The Company shall not be responsible for any errors or past problems, valuations, capital and operating expenditures, information, except as required under applicable securities laws. omissions contained in these materials and do not guarantee the ability to obtain financing, future currency exchange rates, accuracy, completeness or timeliness of the information government regulation of cannabis, and environmental risks. Financial outlook and future ‐ oriented financial information contained herein. Similarly, forward-looking information also includes economic contained in this presentation about prospective financial analysis of the business of the Company and the results thereof, performance, financial position or cash flows is based on See a description of the readers’ rights under “Statutory Rights of including, without limitation, cash flow projections, estimated assumptions about future events, including but not limited to Action for Damages or Rescission” at the end of this presentation. 2
COMPANY SNAPSHOT High Tide is an Alberta-based, vertically integrated and retail focused cannabis corporation: Stock Symbols CSE:HITI | OTC:HITIF | FRA:2LY RETAIL SEGMENT: Share Price 1 $0.15 • Over 10 years focused on the cannabis consumer 1 Canna Cabana branded retail cannabis stores Average Daily Volume 2 583,853 • 33 1 KushBar retail cannabis store now open • 3 Share Outstanding (basic) 1 236 million • Grasscity.com – world’s best online headshop Market Capitalization $35 million • CBDcity.com – CBD e-shop, launched May 2020 Total Employees 3 316 WHOLESALE SEGMENT: TTM Revenue 4 $52.93 million • Designs, manufactures and distributes proprietary TTM Gross Profit 4 $19.34 million smoking accessories and cannabis lifestyle products • RGR Canada with over 5,000 SKUs Total Assets 5 $73.16 million • Famous Brandz featuring 9 celebrity licenses 1 As at July 23, 2020. 2 Total from all three exchanges as at July 23, 2020. 3 As at July 6, 2020 including all direct retail staff. 4 For the trailing 12-month period ending April 30, 2020. 5 As at April 30, 2020, per 2Q20 unaudited financials. Aurora and Aphria are strategically invested in High Tide 3
ESTABLISHED IN ALL DOWNSTREAM MARKETS 1 0 + Y E A R S O F O P E R AT I O N S ; 6 V E R T I C A L LY- I N T E G R AT E D B U S I N E S S E S O N L I N E B R I C K S & M O R T A R C A N N A B I S A C C E S S O R I E S O N L Y C B D F O C U S E D & A C C E S S O R I E S RETAIL Grasscity.com is the world’s Launched in May 2020, One of Canada’s largest Locations deployed premier online store for CBDcity.com is the recreational cannabis selectively to leverage existing smoking accessories and world’s newest online retail networks real estate partnerships cannabis lifestyle products store for CBD products Canada’s premiere distributor Global manufacturer and distributer of WHOLESALE and manufacturer of smoking celebrity-licensed smoking accessories accessories and lifestyle products and cannabis lifestyle products 4
VISION To provide the full spectrum of best-in-class products and services for cannabis consumers, while growing organically and through acquisitions, to become the world’s premier retail-focused and vertically-integrated enterprise STRATEGY ACCRE TI V E G ROWTH DI FFERE NTI ATI ON CONTI NUOUS R&D • Consumer trends and product manufacturing • High-quality retail focus – corporate and franchise • Organic initiatives, business development • Loyal customers via strong brands, responsible retail and major internal projects • Customer education and excellent service • Asset acquisitions • Peer monitoring • Margin capture through vertical integration • Corporate transactions • Industry evolution • Optimized operations – manufacturing and distribution • Government regulations GOALS S H O R T- T E R M L O N G - T E R M • Continue constructing and opening more retail cannabis stores • Build great brands • Convert LOIs into fully-executed projects • Develop responsible customer relationships • Establish a retail presence in all applicable Canadian provinces • Play a key role in shaping a world-leading Canadian cannabis industry • Hire talented people to help lead, operate and grow the organization • Deliver shareholders an industry-leading ROI and earn premium multiples as a public company through strategic stewardship, disciplined capital allocation • Foster positive relationships with governments and local communities and strong governance 3
TIMELINE OF MILESTONES 33 Current Locations 1 st Franchised Growth to 3 Growth to 7 Smoker’s Corner Smoker’s Corner Smoker’s Corner Listed as HITI on Locations Locations Location Founded Dec. 17, 2018 Founded KushBar 2009 2012 2019 2020 2018 Co-founded 2015 Acquired remaining Acquired 50% of Invested $4.5 MM Founded Co-founded Smoker’s Corner Founded Welcomed to the CFA Invested $10 MM 3 Current Founded Locations 6
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