AUS
NZ
UK
CA
USA
IND
Source: ukhta Yurii, Shutterstock
Summary
- High Tide on (TSXV HITI) investors’ radar after it goes on an expansion spree across Canada.
- Since its debut last November, the stock gained over 330 per cent.
- High Tide’s revenues rose by 118 per cent to C$24.9 million in Q4 of 2020.
Canada’s lifestyle cannabis company High Tide Inc. (TSXV:HITI) is drawing investors’ attention as it goes on a massive expansion mode at home. The stock was trending in the North American markets hours after it announced the opening of a new store in London, Ontario.
The stock was up 5 per cent to C$0.82 from the previous close at 10.16 am ET on Monday. High Tide is one of the most actively traded stocks in recent weeks, with 10-day and 30-day volumes averaging 5 million and 8 million, respectively. Since its debut last November, the stock gained over 330 per cent.
The company on Monday began selling its lifestyle cannabis products from its retail outlet in Canna Cabana located at 760 Hyde Park Road in Ontario. It is the company’s 76th retail store in the country and the first in Ontario’s top business district.
The Alberta-based company, which has a market cap of C$ 518 million, produces lifestyle cannabis products under its various subsidiaries, including Famous Brandz, Canna Cabana, Smoker's Corner., and Grasscity.com.
©Kalkine Group 2021
High Tide’s Expansion Drive
According to High Tide CEO Raj Grover, the Canna Cabana store in Ontario will bolster the company’s footprint in one of Canada’s most populous provinces. The company, he said, will expand from the current 27 to at least 30 locations by the end of 2021.
Last week, it had announced the opening of its 75th retail store in Calgary's Haysboro neighborhood. Recreational cannabis products have become a big hit in the North American markets after the governments lifted cannabis use a few years ago. President Biden has also promised to overturn Federal legislation to make cannabis usage in the pharmaceutical industry.
Given the favorable government policies in both Canada and the US, as well as in Mexico where the lawmakers are also planning to introduce national legislation this year to make cannabis legal, the industry is expected to witness exponential growth in the coming years. Also, lifestyle cannabis products are fast catching up in Europe, especially in the UK, where firms boosting production.
In Q4 of 2020, High Tide revenues rose by 118 per cent to C$24.9 million and by 166 per cent to C$83.3 million for the year ended October 31, 2020. Its gross profit had risen to C$8.7 million in Q4.
