Cannabis retail is one of the more important sectors in the ever-growing industry and in that regard; Canada’s High Tide Inc (CSE:HITI) (OTC: HITIF) is one of the more important companies. The vertically integrated company makes and distributes a range of cannabis lifestyle products as well as smoking paraphernalia. High Tide owns numerous subsidiaries which are engaged in a range of businesses in the cannabis industry and it is determined to ensure that in its role as the parent company, it is able to further increase the value of its portfolio of companies. More importantly, some of the biggest cannabis companies in the industry like Aurora Cannabis, FSD Pharma, and Aphria have invested in High Tide.
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The range of subsidiaries under its control has also grown significantly over the past year or so and the centerpiece of High Tide’s business is the subsidiary RGR Canada Inc. RGR is involved in the manufacturing and distribution of upscale cannabis accessories. However, after the legalization of cannabis in Canada, Kush West Distribution and Canna Cabana Inc are two subsidiaries that seem to be primed for growth in the foreseeable future. Kush West is all set to become a whole distributor of cannabis in the Saskatchewan province, while Canna Cabana is all set to become a major player in the cannabis accessories retail business. At this point in time, Canna Cabana aims to open 21 stores, which should also include some stores which are solely dedicated to accessories.
Signed a Deal for a Warehouse Facility
In a new development on July 23, the company signed a deal that would give it a 5-year lease of 25,000 square foot warehouse facility located in Las Vegas, Nevada. More importantly, High Tide is now going to develop the property and turn it into the company main distribution center in the United States. It is a significant deal for the company as it will allow the company to deal in the wholesale cannabis space in a big way and also help in supplying to its subsidiaries like Famous Brandz and RGR Canada. It will be a one-stop location from where the company will ship cannabis to the rest of the country.
Holds 7 stores in Alberta
Earlier on in July, High Tide made a significant announcement with regards to Canna Cabana. The company stated that two of its stores in Edmonton and Okotoks, have both received their first lot of cannabis products and has started selling cannabis from July 9. The supplier, in this case, was Alberta, Gaming, and Liquor. The expansion of Canna Cabana is a significant development for High Tide as the subsidiary’s presence has gone up significantly. At this point, the number of stores in Alberta now stands at 7, while the total number of stores across Canada is pegged at 11. Moreover, High Tide is also expecting to establish 10 new stores under the Canna Cabana brand and all those stores will be engaged in retailing cannabis. Considering the scope of the market in Canada, it is a hugely positive development for High Tide.
Big 325% Jump In Revenues
Back in June, the company announced its Q2 2019 earnings and the headline figures were hugely impressive. High Tide recorded a year on year rise of 325% in its revenues as it brought in $6,596 in revenues during the period. Much of the rise in revenue was due to the profitable operations of Grasscity, the retail cannabis arm of Canna Cabana.
In the same period, the company’s assets ballooned by as much as 84% from back on January 31 this year, to hit $47,677. In June, High Tide had also made another tweak to Grasscity that could have far-reaching consequences about the future of the company. The Grasscity e-commerce platform has been upgraded to a much more efficient Megento 2 platform and it is expected to make the platform a highly useful one for all users.