CALGARY, Jan. 30, 2019 /CNW/ – High Tide Inc. (“High Tide” or the “Company”) (CSE:HITI), an Alberta-based downstream cannabis corporation focused on the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that it recently signed letters of intent to acquire two cannabis retail locations in Saskatchewan from two separate vendors (the “Locations”). Subject to regulatory approval, the Locations will be strategically situated in different cities with distinct customer bases, which will enable both urban and rural cannabis consumers to develop a relationship with the Canna Cabana brand. Entering Saskatchewan will also provide High Tide with the unique opportunity in Canada to sell recreational cannabis online as a private retailer, which leverages the in-depth e-commerce experience gained from its Grasscity and Smoker’s Corner businesses. High Tide expects each transaction to be closed by the end of February and it continues to pursue additional acquisition opportunities in the province.
The Saskatchewan market provides a compelling growth opportunity for High Tide due to the limited number of 51 retail cannabis permits granted by the Saskatchewan Liquor and Gaming Authority (“SLGA”). “Acquiring two retail cannabis stores in Saskatchewan will allow us to expand our Canna Cabana brand and apply our product expertise and customer knowledge to a new Canadian market,” said Raj Grover, President and Chief Executive Officer of High Tide. “We are also in the process of establishing a wholesale business named Kush West Distribution, subject to SLGA approval, to serve retailers across Saskatchewan as part of our strategy to be vertically-integrated wherever possible. Accordingly, we have entered into a conditional lease for a warehouse in Regina approximately 10,000 square feet in size,” added Mr. Grover.
High Tide currently has seven Canna Cabana retail stores open in Alberta and continues to move forward with 26 other Canna Cabana locations under various stages of construction, which are all expected to be completed and ready for inspections by the end of March. In total, the Company has 33 development permits for its Canna Cabana and KushBar retail cannabis stores across Alberta and expects to receive the four remaining development permits required to achieve Alberta Gaming, Liquor and Cannabis’ maximum of 37 initial locations across the province.