High Tide Inc (OTCMKTS:HITIF) reported robust revenues of $19.57 million In Q2 2020. The company posted excellent earnings despite the ongoing coronavirus crisis by utilizing its experience of over 10-years with cannabis consumers. CEO and President of High Tide, Raj Grover, said the company focuses on strengthening its balance sheet and improve value for the shareholders through retail expansion in Ontario.
Operational highlights in Q2
High Tide took over and merged the Canna Cabana locations in Sudbury and Hamilton. It also acquired Tisdale, Saskatchewan based retail cannabis location, and strengthened its retail presence in Saskatchewan.
High Tide signed a deal with Halo Labs to sell its Kush Bar assets and mobilized $12 million. It also inaugurated a Canna Cabana outlet in the center of downtown Edmonton, Alberta.
High Tide integrated its Las Vegas facility with the e-commerce platform of Grasscity. It clocked a growth in transaction volumes daily and enhanced its North American market share.
High Tide maintains the operations of Canna Cabana locations even during the COVID-19 pandemic and improved operational efficiency. The company holds a portfolio of 36 retail cannabis outlets in Saskatchewan, Alberta, and Ontario.
Developments after Q2
High Tide inaugurated a KushBar outlet in Medicine Hat, Alberta, on May 8, 2020. The company previously opened KushBar stores in Camrose and Morinville.
The other four retail locations opened by the company in Ontario include Toronto – Bayview Avenue, Toronto – Parliament, Niagara Falls, and Burlington. The company maintains a provincial market share of 9% by each location as of June 9, 2020.
High Tide bets on retail business for its growth going forward. It also leverages the cannabis and associated accessories via its e-commerce and manufacturing portfolio. The company expects to maintain its strategic objectives this year with cash flow accrued from divesting Halo Labs shares and SSC (senior secured credit) facility. High Tide will capitalize on the underserved market in Canada through expanding in Ontario.
Issues common shares
High Tide issued common shares of 1.871 million to convertible debenture holders for the interest owed to the holders. The holding period for interest shares is 4-months plus one day and expires on October 6, 2020.