CALGARY, Sept. 6, 2019 /CNW/ – High Tide Inc. (“High Tide” or the “Company”) (CSE:HITI) (OTCQB:HITIF) (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 the Canna Cabana retail stores located in Unit #610 at 20 Crowfoot Crescent NW in Calgary and at 4806 50 Avenue in Vegreville (the “New Stores”) both received their first deliveries of cannabis products from Alberta Gaming, Liquor and Cannabis (“AGLC”) and has begun selling recreational cannabis for adult use. Grand opening festivities will be held at each of the New Stores on Saturday, September 7. The Company currently has 23 branded Canna Cabana locations selling recreation cannabis products across Canada, inclusive of the New Stores.
High Tide’s next Canna Cabana location is licensed and expected to be operating as a retail cannabis store by mid-September. With the opening of the first KushBar location in the coming weeks, the Company will soon have 25 branded retail cannabis locations across Canada, barring any changes to the current rate of licensing by AGLC. “Our company continues to execute on its growth plans by adding a great location in northwest Calgary while expanding into the new market of Vegreville,” said Raj Grover, President and Chief Executive Officer of High Tide. “With every new store we are solidifying Canna Cabana as Canada’s favourite retail cannabis brand, which is becoming clear from our top-ranked customer reviews,” added Mr. Grover. The remaining Canna Cabana and KushBar stores needed to achieve the AGLC’s maximum of 15% market share are currently under various stages of development and construction. Outside of Alberta, High Tide currently has a Canna Cabana retail cannabis store in Swift Current, Saskatchewan, along with 3 branded locations in Hamilton, Sudbury and Toronto, Ontario.
In addition, High Tide has secured a $2,000,000 loan from an arm’s length third party, bearing an interest rate of 12% and a term to maturity of 1 year. The arm’s length third party will receive 1,600,000 warrants with an exercise price of $0.85 per common share of High Tide and are exercisable for a period of 2 years from the effective date of the loan. High Tide also intends to grant 300,000 warrants to an arm’s length consultant to assist on corporate and business development initiatives. The consultant’s warrants will have an exercise price of $0.38 per common share of High Tide and will be exercisable for a period of 2 years from the effective date.