High Tide Inc. (CSE:HITI,OTCQB:HITIF,FWB:2LY) is an Alberta-based, retail-focused cannabis corporation that designs and sells premium-quality smoking accessories to wholesale clients and retail customers. High Tide also sells cannabis products to retail consumers through two business segments operating across six subsidiaries: RGR Canada and Famous Brandz which make up the wholesale segment, and Smoker’s Corner, Grasscity, Canna Cabana and KushBar which make up the retail segment.
RGR Canada is home to High Tide’s manufacturing, wholesale and distribution operations. Since it was founded, High Tide has developed an extensive product catalog that includes over 4,300 SKUs, of which approximately 75 percent are designed in-house, manufactured in Asia and distributed to hundreds of global customers from the company’s 27,000-square-foot office and warehouse in Calgary, Alberta.
High Tide’s second subsidiary, Famous Brandz, designs and manufactures smoking accessories featuring licensed celebrity brands, including but not limited to Snoop Dogg, Cheech & Chong’s Up in Smoke, Kevin Smith’s Jay and Silent Bob characters, the Trailer Park Boys, Sublime and Guns N’ Roses, Beach Bum, Hellboy and Radio Days. High Tide has also developed and launched “Famous X”, a cannabis lifestyle product line that is being offered in convenience stores, gas stations, specialty stores and big-box retailers. High Tide mainly sells its Famous Brandz licensed accessories to customers in the US and where permitted in locations across Canada.
High Tide’s first and founding retail brand, Smoker’s Corner, has 13 retail locations across Alberta, British Columbia and Nova Scotia. Six of the locations are owned by the company and seven are franchise locations. On average over time, each Smoker’s Corner location has generated C$380,000 per year from the sale of smoking accessories.
High Tide’s newest retail brand, Canna Cabana, offers recreational cannabis products along with High Tide’s wide range of well-known smoking accessories. Canna Cabana is a ground-breaking brand that provides an approachable, playful and sophisticated experience for the retail customer. Canna Cabana staff are on boarded under an industry-leading training program that emphasizes education, customer service and responsibility. To date, 26 Canna Cabana-branded locations have been opened in Alberta, Saskatchewan and Ontario, but the company intends to open over 100 more stores across Canada within the next few years.
Finally, High Tide’s third retail brand, KushBar, is in the beginning stages of development. High Tide owns a majority of this new retail brand, which is expected to have four stores in Alberta and a much larger footprint in Ontario. KushBar is expected to provide customers with a similarly comfortable, sophisticated and modern retail experience to Canna Cabana, featuring High Tide’s wide range of accessories and knowledgeable staff, but with the added benefit of the company’s strategic partner striving to secure strong locations in the large Ontario market. To date, two KushBar-branded stores have been opened in Alberta.
High Tide acquired Grasscity.com in December 2018, the world’s number one online retailer of smoking accessories. The website receives approximately 5.8 million site visits annually and over 90 percent of the site’s revenue comes from its customer base in the US. Additionally, Grasscity has a substantial following on social media, its online forums and weekly newsletter.
High Tide is led by a strong and experienced management team and board of directors. High Tide Founder, President, CEO and Executive Chairman Raj Grover notably holds slightly more than 50 percent of the company’s common shares. Grover has over 17 years of experience in building successful companies and leads the industry in manufacturing capabilities. Additionally, since 2009 he has built the largest network of retail stores serving cannabis enthusiasts in Canada.
High Tide’s Company Highlights
- Existing B2B smoking accessories business, featuring proprietary white-labeling programs, which turns retail competitors into wholesale customers.
- Five operating subsidiaries focused on the design, manufacturing, distribution and retailing of smoking accessories and cannabis lifestyle products.
- RGR Canada has over 4,300 SKUs, with approximately 75 percent designed in-house and manufactured in Asia on a proprietary basis.
- Largest purchase order ever received for cannabis smoking accessories was from Aurora Cannabis (TSX:ACB) in the second half of 2018.
- Famous Brandz works with licensed celebrity brands including but not limited to Snoop Dogg, Cheech and Chong, Kevin Smith’s Jay and Silent Bob characters as well as the Trailer Park Boys.
- Since 2009, Smoker’s Corner has grown to become Canada’s largest chain of smoking accessory shops with 14 locations in Alberta, British Columbia and Nova Scotia
- 21 current retail cannabis locations under the “Canna Cabana” brand with more than 120 planned across Canada within two years.
- Accessory supply agreement in place with the Ontario Cannabis Store (OCS).
- Acquired Grasscity.com, the world’s number one smoking accessories retailer, which receives approximately 5.8 million site visits annually.
- 90 percent of Grasscity’s revenue is generated by customers in the US.
- High Tide exceeded C$797,000 in cannabis sales on the first anniversary of Canadian cannabis legalization.