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There is already a procedure put in place by UPS to counter the Nicotine Vape bylaw. Businesses will have to register, show tax collection verification and proof of age signature for customers to collect their vape
delivery.
They will have to go to UPS registered points of access (like the CVS chain for one) to pick up. If anything this will strengthen the stronger distributor companies like High Tide because smaller vape on-line businesses won't want to go through the added trouble and the expense and will probably close or continue in illegal fashion. There are also numerous other private delivery carriers more then happy to step in as well.
Business to business sales from distributors are barely effected at all. If High Tide perceived a problem they would never have closed the Smoke Cartel acquisition or at least tried to re-negotiate price. Raj was aware of the change quite some time ago and that the intent of the change was never to stop vaporizer hardware sales but to stop teen-age nicotine vaping.
Yes, it appears we have liftoff the last couple days. Trading free and easy today on Canadian side, not a lot of asks on that side currently.
Yesterday's breakout of a upper downtrend trend line appears to have been a significant one. Bid side not huge but large buyers swooping in out of nowhere buying at the ask. Up .05 currently Cad.
Hopefully the rest of the market doesn't ruin our rally.
2021-03-22 12:39 ET - News Release
Also News Release (C-CLIQ) Alcanna Inc
An anonymous director of YSS reports
ALCANNA INC. AND YSS CORP. ANNOUNCE CLOSING OF REVERSE TAKEOVER AND CREATION OF "NOVA CANNABIS INC."
YSS Corp. and Alcanna Inc. have completed their business combination, previously announced on Jan. 18, 2021, which resulted in a reverse takeover of YSS pursuant to the policies of the TSX Venture Exchange and a name change of YSS to Nova Cannabis Inc. The common shares of Nova ("Nova Shares") are expected to begin trading on the TSXV under the ticker symbol "NOVC" on or about March 24, 2021.
Reverse Takeover
Pursuant to the terms of the business combination agreement dated January 18, 2021 (the "Agreement"), Alcanna sold all of the equity securities of its wholly-owned subsidiaries, Alcanna Cannabis Stores GP Inc. ("ACS GP") and Alcanna Cannabis Stores Limited Partnership ("ACS LP" and together with ACS GP, the "ACS Entities"), which carry on Alcanna's cannabis retail business, to YSS. Pursuant to the Agreement, the common shares of YSS ("YSS Shares") were consolidated (the "Consolidation") on the basis of a ratio of approximately 0.05449-to-one, such that, after completion of the Consolidation, the holders of YSS Shares ("YSS Shareholders") held an aggregate of 7,583,353 post-Consolidation YSS Shares. In consideration for the purchase of the equity securities of the ACS Entities, YSS issued an aggregate of 35,750,000 post-Consolidation YSS Shares to Alcanna (the "Consideration Shares") at a deemed price of $3.00 per YSS Share.
As previously announced on February 11, 2021, Alcanna Cannabis Stores Finance Ltd. ("ACS FinCo"), a wholly owned subsidiary of ACS LP, closed the sale of an aggregate of 13,334,000 subscription receipts (the "Subscription Receipts") at a price of $3.00 per Subscription Receipt, for aggregate gross proceeds $40,002,000 (the "Concurrent Financing"). Each Subscription Receipt converted into one common share of ACS FinCo (each, a "FinCo Share") and was subsequently exchanged for a Nova Common Share pursuant to an amalgamation of ACS FinCo with a wholly-owned subsidiary of YSS (the "Amalgamation"). Following completion of the Transaction and the Amalgamation, Alcanna holds approximately 63%, former YSS Shareholders and former holders of Subscription Receipts hold approximately 13% and 24%, respectively, of the Nova Shares (calculated on a basic basis).
The net proceeds of the Concurrent Financing are expected to be used for Nova's go-forward business plan, including the development, construction and acquisition of additional cannabis retail locations and conversion of existing cannabis retail locations to the "Value Buds" banner, including capital expenditures, inventory, and other general corporate and working capital purposes.
Exchange Matters and Trading Halt
The TSXV has provided conditional approval for the Transaction and listing of the Nova Shares. In accordance with TSXV policies, the Nova Shares will remain halted for trading until the TSXV issues the final bulletin in respect of the Transaction. Nova will continue as a Tier 1 Life Sciences issuer on the TSXV and the Nova Shares are expected to commence trading on or about March 24, 2021. The total number of Nova Shares issued and outstanding at listing will be 56,685,666.
In connection with the graduation to a Tier 1 listing, all securities of YSS which were subject to a Tier 2 escrow release schedule pursuant to the value security escrow agreement dated January 2, 2019 will be subject to a Tier 1 release schedule, resulting in the immediate release from escrow of all such securities.
Governance and Management
Alcanna and Nova have entered into an investor rights agreement (the "Investor Rights Agreement") providing for customary rights based on Alcanna's equity interest in Nova. Alcanna has agreed to a two-year lockup period in respect of the Consideration Shares, subject to certain conditions. Pursuant to the Investor Rights Agreement, Alcanna appointed four nominees to the board of directors of Nova: James Burns, Darren Karasiuk, Ross Sinclair, and Thomas Bitove. Ron Hozjan, an independent director of YSS, will continue as a director of Nova.
The board of directors of Nova is expected to make the following appointments: James Burns as Chair; Thomas Bitove as Lead Director; Darren Karasiuk as President and Chief Executive Officer; David Gordey as Chief Financial Officer; Marcie Kiziak as Chief Operating Officer; and Matthew Hewson as Corporate Secretary. Other than Ron Hozjan, the existing directors and executive officers of YSS resigned. Brief biographies of each of the directors and executive officers of Nova are below. Darren Karasiuk has resigned from the Alcanna board of directors, effective March 20, 2021.
Darren Karasiuk, Director, President and Chief Executive Officer ( Toronto, Ontario )
Mr. Karasiuk served as Chief Commercial Officer of Aurora Cannabis Inc. ("Aurora") where he had oversight of key customer facing and revenue driving functions, including sales, marketing, consumer insights and analytics. During his tenure, he helped Aurora achieve leadership in the Canadian recreational and medical cannabis markets, as well as Europe. Mr. Karasiuk joined Aurora through the acquisition of MedReleaf Corp., where he served first as Vice-President, Strategy and later as Senior Vice-President and General Manager of the Recreational business. Prior to joining MedReleaf, Mr. Karasiuk was Vice-President, Insights and Advisory at Deloitte. Mr. Karasiuk has served on Alcanna's board since 2019 and holds an MA from Western University as well as an MBA from Kellogg-Schulich. Mr. Karasiuk resigned from the Alcanna board on closing of the Transaction.
James Burns, Chair ( Edmonton, Alberta )
Mr. Burns has been Vice-Chair and Chief Executive Officer of Alcanna since December 2017 after joining the board in June 2017 and being named lead director and placed in charge of developing Alcanna's cannabis strategy. Throughout a 45-year career, he has been: a partner at Gordon Capital Corporation and Gordon Investment Corporation in their private equity business; co-owner, director and CFO at Scott's Restaurants and priszm brandz; Managing Director at CIBC Capital Markets; and Chief of Staff to the Deputy Prime Minister of Canada and Chair of the Chiefs of Staff Committee. Mr. Burns holds a B. Comm. (Honours) from Queen's University School of Business and a Master of Science (Mark of Distinction) in Politics of the World Economy from the London School of Economics.
Thomas Bitove, Director ( Toronto, Ontario )
Mr. Bitove has worked in many aspects of multi-unit operations for his entire career. Just a few of the businesses he has owned and operated include: Hard Rock Cafe; a 32 store Big Boy chain; 35 separate restaurants and concessions at Toronto Pearson airport; and 17 Travel Centres along the 401 and 400 in Ontario. Mr. Bitove is the exclusive distributor of Red Bull Energy Drink in Ontario and British Columbia and owner of ColdHaus Direct Inc, a major distributor of beer and wine in Ontario. Mr. Bitove served 12 years on the board of Intrinsyc Technologies, a TSX-listed public company. Mr. Bitove was invested into the Order of Ontario, Ontario's highest honour for a citizen. The award recognizes his charitable contributions to the people of Ontario and Canada as well as his business successes.
Ross Sinclair, Director ( Toronto, Ontario )
Mr. Sinclair was a partner with PricewaterhouseCoopers LLP ("PwC") and has more than 25 years of experience as a partner. Mr. Sinclair retired from PwC on June 30, 2020. He has had extensive experience with clients across several industries including consumer products, retail, real estate, health care and private equity. Mr. Sinclair has served many clients advising on critical business issues, transactions and restructurings in addition to his experience as a lead audit partner on both public and private enterprises. Mr. Sinclair's experience includes PwC Canada leadership roles as Income Trust and IPO Services Group Leader, as well as Retail & Consumer Products National and GTA Industry Leader. Mr. Sinclair has significant experience working with clients on their capital markets projects and needs, including numerous equity, debt and initial public offering and RTOs. Mr. Sinclair has also served as the overall audit engagement leader on several Canadian retailers and other public companies including both US GAAP, SEC, OSC and IFRS reporting responsibilities. Mr. Sinclair was a designated Trustees on the Continuum REIT IPO in the fall of 2019 and is an Advisory Board member and investor in Arch Corporation.
Ron Hozjan, Director ( Calgary, Alberta )
Mr. Hozjan has served as a director of YSS since June 2018 and is currently a member of YSS' audit committee and corporate governance and compensation committee. Since January 2020, Mr. Hozjan has held the role of Vice President, Finance and Chief Financial Officer of Aureus Energy Services Inc. Prior thereto, he served as Vice President, Finance and Chief Financial Officer of Tamarack Valley Energy Ltd. (TSX: TVE) from June 2010 until January 2020. Mr. Hozjan has also served as a director of Aloha Brands Inc. since April 2019.
Marcie Kiziak, Chief Operating Officer ( Edmonton, Alberta )
Ms. Kiziak, currently President of Alcanna's cannabis division, has led the retail cannabis business since she took over in July 2018. Ms. Kiziak was Alcanna's lead executive in designing and executing the strategy to launch the Nova brand, starting with 5 stores at legalization day. Ms. Kiziak has led the growth in the business to Nova's current 34 stores. Ms. Kiziak joined Alcanna in February 2018 as Senior Vice President, Human Resources and continues in that role concurrently with running Nova. Prior to joining Alcanna, Ms. Kiziak was the Vice President of Human Resources and Safety for Corrosion and Abrasion Solutions Ltd. from 2013 until 2017 which included a secondment into operations to lead a business transformation. Ms. Kiziak also spent 15 years in the oil and gas and construction sectors focused on senior HR Leadership, M&A and Integration. Ms. Kiziak holds a Bachelor of Management Degree with a Major in Human Resources and is a Chartered Professional in Human Resources.
David Gordey, Chief Financial Officer ( Edmonton, Alberta )
Mr. Gordey will act as Chief Financial Officer of Nova and will also continue in his position of Executive Vice President, Corporate Services and Chief Financial Officer of Alcanna. Mr. Gordey assumed the role of Executive Vice President, Corporate Services and Chief Financial Officer of Alcanna in April 2018. Mr. Gordey served as Chief Operating Officer, Liquor from July 2016 to April 2018, and Senior Vice President and Chief Financial Officer from May 2014 to July 2016, after joining Liquor Stores N.A. Ltd. in March 2012 as Vice President, Finance. Mr. Gordey is a Chartered Professional Accountant, formerly of KPMG LLP (Edmonton).
Matthew Hewson, Corporate Secretary (Edmonton, Alberta)
Mr. Hewson is Alcanna's General Counsel, Senior Vice President, Regulatory Affairs & HR and Corporate Secretary. Mr. Hewson joined Alcanna in 2013 and assumed the role of General Counsel in 2016. Prior to joining Alcanna, Mr. Hewson worked as a corporate/commercial lawyer at a national law firm.
Additional Information for YSS Shareholders
Registered holders of pre-Consolidation YSS Shares will receive a letter of transmittal by mail, from the transfer agent of Nova, Odyssey Trust Company, advising of the completion of the Consolidation, the Name Change and the Transaction, and providing instructions to exchange share certificates or DRS statements representing pre-Consolidation YSS Shares for their entitlement to Nova Shares. Non-registered shareholders holding YSS Shares through an intermediary (a securities broker, dealer, bank or financial institution) should be aware that the intermediary may have different procedures for processing the Consolidation and the Name Change than those that will be put in place for registered shareholders. If shareholders hold their YSS Shares through intermediaries and have questions in this regard, they are encouraged to contact their intermediaries. Further details regarding the Concurrent Financing, the Transaction, the Name Change, the Consolidation, and the Amalgamation are set out in the management information circular of YSS dated February 12, 2021, which is available on SEDAR (www.sedar.com) under Nova's issuer profile.
About Nova
Immediately upon completion of the Transaction, Nova will have 53 cannabis retail locations in Alberta, Saskatchewan and Ontario. These cannabis retail locations range in size from 1,200 to 5,600 square feet and are operated under the "Nova Cannabis", "Deep Discount Cannabis", "Value Buds", "YSS", and "Sweet Tree" brands. Nova has more than 20 additional cannabis retail locations in development for 2021. The majority of Nova's cannabis retail locations (including locations previously operated by YSS) are expected to be re-branded as "Value Buds" and will target the value-conscious consumer, an under-served segment of the market that is estimated to account for approximately 70% of total recreational cannabis market in Canada (both legal and illicit).
Alcanna will provide management and administrative services to Nova, at a cost that is anticipated to be far less than a stand-alone company could achieve, until Nova reaches the critical size to bring those services in-house. Alcanna and Nova expect to enter into a management and administrative services agreement for an initial two-year term. Alcanna will also provide lease guarantees for Nova and make available to Nova an operating line of credit without standby fees for up to $10 million at prime plus 2.75% for growth, including new store builds, acquisitions and general corporate and working capital purposes. The operating line of credit will be drawable at Nova's sole discretion and will be secured by a charge on all of the personal property of Nova. A copy of the Investor Rights Agreement will be available on Nova's SEDAR profile at www.sedar.com.
In connection with the Transaction, PricewaterhouseCoopers LLP is anticipated to be appointed as the auditors of Nova following the release of the audited financial statements of YSS for the year ended December 31, 2020.
About Alcanna
Alcanna is one of the largest private sector retailers of alcohol in North America and the largest in Canada by number of stores - operating 196 locations in Alberta and British Columbia. Alcanna is incorporated under the laws of Canada, and its common shares and convertible subordinated debentures trade on the Toronto Stock Exchange under the symbols "CLIQ" and "CLIQ.DB", respectively. Additional information about Alcanna is available at www.sedar.com and www.alcanna.com.
Prior to the Transaction, Alcanna did not hold any securities of YSS. An early warning report will be filed by Alcanna in respect of Nova in accordance with applicable Canadian securities laws. As of the date of this news release, neither Nova nor Alcanna are aware of any plans nor have any future intentions which would relate to or result in any of the matters contemplated by Item 5 of Form 62-103F1 Required Disclosure Under the Early Warning Requirements. To obtain a copy of the early warning report, see the contact information below for Darren Karasiuk.
Advisors
Eight Capital acted as exclusive financial advisor to Alcanna with respect to the Transaction. Cormark acted as financial advisor to YSS with respect the Concurrent Financing. Bennett Jones LLP acted as legal advisor to Alcanna and the ACS Entities. Stikeman Elliott LLP acted as legal advisor to YSS.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.
Looks like it will begin trading as Nova Cannabis (NOVC) in Canada on Wed March 24th. Actual deal expected to close Mar 22 and there should be a halt and news release on that day if everything is approved by the exchange.
The approx share count will be 58M outstanding after the reverse takeover of YSS Corp. The addition of Alcanna's stores to those of Yss Corp should result in a Canadian cannabis retail store count of approx 53 till we hear otherwise.
Looks like the combined entity will be profitable or very close to it right out of the gate and should garner plenty of interest after having secured and closed a recent $40m financing at $3 per share.
Fed meeting today is out of the way and ended on a positive note. Stimulus checks on the way, finished at the high of the day and Surgeguy the contrarian indicator is back so we're sure to have a nice gap up day tomorrow. :)
Looks like Mexico will pass their cannabis legalization bill this week leaving the US as an island from yesteryear with it's crazy schedule 1 definition federally.
They don't even have to legalize it. They only need to come to their senses and stop protecting their illicit market by de-scheduling it from one. If that happens the cannabis sector will view full legalization as just a formality going forward and that alone will send the cannabis bull market into overdrive there.
Senate passes the huge stimulus bill 50-49. Wow that was too close. The senate always was the biggest obstacle. The house sure to give it one last approval on Tuesday since they have control. Looks like bullish sentiment and risk on will arrive once again this week.
The cannabis ETF's have been by far the best performing sector since Jan 1st, followed by energy. It's not surprising we had to to do a significant amount of backfilling during the current market swoon but it sets us up nicely for the next big leg of outperformance after this consolidation.
The US small caps (IWM) outperformed all the major indexes today by a significant margin continuing the trend that has been happening all year. That's usually what happens when people smell inflation and the economy is about to start a period of overdrive. Sector rotation is very real this year and the small caps are the place to be and there's going to be some wild rides both up and down in the sector this year.
Couldn't agree more with all your points. Most cannabis names here fell to strong support areas in the morning and bounced off strongly. HMMJ our Canadian cannabis etf hit the bottom of it's BBand and bounced back up nicely even though it's looks weaker because Canopy Growth is a huge part of it.
Aphria is our strongest cannabis name here and it bounced nicely off it's area of major support as did Tilray. Hiti chart looks very much like Aphria's. Canopy Growth now not too far from it's 200 day and looks the weakest but it's a crappy run company not worthy of investment. Nasdaq ended up bottoming out of an almost 14% correction from it's year high today before bouncing up strongly. If this is truly a bull market there really is no reason to drop any further. The Vix also took a deep dive which is always a good sign. All we need now is a strong finish to the day.
Nasdaq now down 10% from high. Best thing would be for a big Nasdaq flush drop first thing in the morning and then a large comeback as the day proceeds heading into the weekend. We should be getting relatively close to a bottom here.
The other indexes hanging in there way better and my oils well, they're killing it so it's not likely a full blown correction coming or everything would be getting slammed in unison across the board.
Nice synopsis of the conference call Tyrus and John thanks and actually i did listen to it in the morning. The question and answer period was awesome. There is nothing wrong with High Tide and economies are starting to open up again everywhere.
Selloffs at the moment are completely being caused by the Nasdaq where everyone is fleeing the tech stay at home names that benefitted from the various shutdowns now that the vaccines appear to be working.
It's creating a total risk off sentiment throughout the markets and the houses are not going to push anything up with that type of headwind coming at them. It might take another week or so for Nasdaq to stop selling off and it will likely head up as we approach first quarter earnings at the end of the month where many expect another set of banner quarterly numbers.
In the meantime you can try to trade around your core position if it's your thing though it's not my game personally because i'd rather just go to sleep. But it sets us up nicely for a large rally the last couple weeks of the month and beyond when we will likely be getting lots of good news coming out of the Tide as the economy starts to thrive again.
So who's listening to the conference call tomorrow? Hopefully we don't crash it like we did the company website. Kinda weird they haven't posted them since you don't need your website to send out your financials anyways. Just forward them to Reuters or one of many other financial sites. Guess they want to create some kind of splash. Anyways the conference call is more important.
I get where your coming from re shares outstanding but in the end it's all about what your market cap is and that the S/O are tightly held, as they appear to be in this case.
In actuality they have only really added about 60 million shares since the merger and raised a lot of money doing so. They closed the merger which doubled their shares outstanding to 450 mill. Both companies had quite tight share structures and that appears to have remained so. I guess we'll know once they finish manipulating and the huge offer walls come down.
Interesting but on the CAD side there is only 270,000 shares offered in total from .70 to .80 The stock seems pretty darn tight especially considering the shares outstanding, once the big guys step aside. Clearly they are still cleaning house and moving large amounts of shares around as of yesterday. Once they are done this will explode.
Tilray, Aphria up big after hours and Gamestop also going to the moon again after hours. The reddit craze is back on again which should help bring lots of money into all the pot stocks. Probably won't tank the market this time because the short position is much smaller and there is less risk of any hedge fund going under.
As far as High Tide looks like they are not done jockeying the stock into the holders they want yet. Might go on for a couple more days since the financing is still so fresh. Looks like more options and warrants getting exercised every day bringing in more cash.
The conference call next week will be the big event that gets us going in the direction we're all waiting for. The quarter will be strictly High Tides quarter without Meta. But the real event will be the outlook that Raj provides during that call and the questions that get asked at the end that will have a lot of forward looking bullish cues. Those two things will be the most important aspects of the day. There for sure will be a few financial analysts listening in and asking those all important questions and Raj is usually pretty forthcoming with his answers.
Only one stock is positive today in the top 10 volume traders in CAD and that's High Tide.
Yes watched the order book and they literally pulled all the support they usually provide and let it free float for an hour. As soon as it stopped going down all kinds of support showed up on the bid. A little manipulated yeah but they knew it was going to be a bad general market day and took advantage of it to shake the tree.
The official short interest numbers for Feb 15 finally came out and they jumped to 24M shares short. They sure didn't have much time to cover today if they weren't part of the placement.
Well we're back in positive territory now. Nice quick recovery. Market makers took advantage of a 3% drop in the Nasdaq caused by the usual freak out over Jay Powell speaking earlier which was pretty much positive. It was their chance to shake out the weak hands, hopefully not to many got suckered out of their shares.
Know what you own. No-one can predict market freak outs and with free trading shares today from the placement it was a perfect storm for the market makers to create a good shakeout. The future is nothing but upside here over time.
Raj Grover's twitter should start to become more active.
https://twitter.com/RajGrover_HITI
Today we closed our $23 million oversubscribed bought deal equity financing adding more juice to our @HighTide_HITI strategy that includes more stores + strategic acquisitions. Thanks to @EchelonWealth, ATB Capital and all other syndicate members! $HITIF https://t.co/YYmLbxnEzA
— Raj Grover 🇨🇦 (@RajGrover_HITI) February 22, 2021
Well done. Wouldn't give up on the housing market yet but the US has been neglecting their infrastructure for a couple decades and there has never been a better time then in this period of low rates.
Going off topic is what you do while you wait out a boring stock financing period. Plus it gets rid of posters like Surgeguy who thinks we're all morons lol.
High Tide closes $22.99-million bought deal
2021-02-22 12:03 ET - News Release
Mr. Vahan Ajamian reports
HIGH TIDE ANNOUNCES CLOSING OF $23 MILLION BOUGHT DEAL EQUITY FINANCING, INCLUDING EXERCISE IN FULL OF OVER-ALLOTMENT OPTION
High Tide Inc. has closed its previously announced bought deal short form prospectus offering of units of the company, including the exercise in full of the underwriters' overallotment option. The offering was led by ATB Capital Markets Inc. and Echelon Wealth Partners Inc., together with Beacon Securities Ltd. and Desjardins Securities Inc.
In connection with the Offering, the Company issued an aggregate of 47,916,665 Units at a price of $0.48 per Unit, for aggregate gross proceeds of $22,999,999.20. Each Unit is comprised of one common share of the Company (each, a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one additional Common Share at an exercise price of $0.58, for a period of 36 months following the closing of the Offering. The TSX Venture Exchange has conditionally approved the listing of (i) the Common Shares and the Warrants issued pursuant to the Offering, and (ii) the Common Shares issuable upon the exercise of the Warrants, the broker warrants issued to the Underwriters, and the Warrants comprising the Units underlying such broker warrants. Listing will be subject to the Company fulfilling all of the listing requirements of the TSXV. The Company expects the Warrants to commence trading on or about February 23, 2021.
The Company intends to use the net proceeds of the Offering for opening new retail cannabis store locations, completing strategic acquisitions, general corporate and working capital purposes, and for such other purposes as described in the short form prospectus of the Company dated February 16, 2021 (the "Prospectus") prepared and filed in connection with the Offering.
Garfinkle Biderman LLP acted as legal advisors to the Company in connection with the Offering. Stikeman Elliott LLP acted as legal advisors to the Underwriters in connection with the Offering.
Related Party Transaction
Mr. Rahim Kanji, Mr. Vahan Ajamian, and Mr. Shimmy Posen, the Chief Financial Officer, the Vice President Capital Markets, and the Corporate Secretary of the Company, respectively (collectively, the "Participating Insiders") participated in the Offering and acquired an aggregate of 3,112,084 Units pursuant to the Offering. The participation of the Participating Insiders in the Offering constitutes a "related party transaction", as such term is defined in Multilateral Instrument 61-101 - Protection of Minority Shareholders in Special Transactions ("MI 61-101"), and would require the Company to receive minority shareholder approval for, and obtain a formal valuation for the subject matter of, the transaction in accordance with MI 61-101, prior to the completion of such transaction. However, in completing the Offering, the Company has relied on exemptions from the formal valuation and the minority shareholder approval requirements of MI 61-101, in each case on the basis that the fair market value of the Participating Insiders' participation in the Offering does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report more than 21 days before the closing date of the Offering (the "Closing Date") due to the limited time between the launch date of the Offering and the Closing Date.
ABOUT HIGH TIDE
High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 70 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its numerous consumption accessory businesses including e-commerce platforms Grasscity.com and CBDcity.com, and its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide's strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aphria Inc. (TSX:APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.
Yeah chart looks like a massive launch site. Lots of support under the bid on the Canadian side. It's only a matter of time whether it's today, this week or next.
High Tide is still a microcap and yet it has everything going for it compared to so many of the others that are moving. It has growth, revenue, profits, vision and a rapidly building investor following. Investment will keep flowing into here month after month because it's so hard to find companies that are truly undervalued from a revenue and profit potential perspective.
Interesting how the Nasdaq has been trading down lately. Investors clearly leaving the tech space and the money is going into the cyclical and inflationary beneficial sectors like the small caps. It's about time for a sea change. After 10 years of everyone investing in the same 10 stocks and throwing all else out with the bathwater.
Not sure if your using $US. It's kind of complicated because of the Meta merger and i'm not sure your adding their revenues to your guestimate. The merger was not completed until November though the S/O number has been included in your numbers correctly as of the day of the merger. If i had to venture a guess the combined entity will more likely do revenues closer to $180M Cad in this next fiscal year minimum.
They have 70 stores now and approximately 10-12 of them were added in the last two quarters and there is no real number for them revenue wise posted by the combined entity as of yet because financials are still working on 6-9 month ago numbers.
Many of those 10-12 stores (of that 70) are in Ontario where average revenue figures will be significantly higher then their previous per store numbers. Covid will also be less of an obstacle with many restrictions lifted and walk-in sales could explode this year as you might imagine if we get close to herd immunity. Add tourism and possibly open borders to that as well.
Their online US ancillary business has grown significantly as well and with the acquisition of Smoke Cartel soon to close will also add to their numbers. Their ancillaries will also be in all the Meta stores now as well. All that said i'm not even including the possible 30 stores plus they hope to open in the next year. If you add them and most of them will be in Ontario there is no reason why they can't push $250M Cad in this fiscal year IMO.
They had 40% net margins recently which is crazy high for retail. Though they may drop a touch with the addition of Meta but if they can reach anywhere near $100M net margins this year think what that will do to their share price. These are all just my own personal projections so keep that in mind.
Not sure if your using $US. It's kind of complicated because of the Meta merger and i'm not sure your adding their revenues to your guestimate. The merger was not completed until November though the S/O number has been included in your numbers correctly as of the day of the merger. If i had to venture a guess the combined entity will more likely do revenues closer to $180M Cad in this next fiscal year minimum.
They have 70 stores now and approximately 10-12 of them were added in the last two quarters and there is no real number for them revenue wise posted by the combined entity as of yet because financials are still working on 6-9 month ago numbers.
Many of those 10-12 stores (of that 70) are in Ontario where average revenue figures will be significantly higher then their previous per store numbers. Covid will also be less of an obstacle with many restrictions lifted and walk-in sales could explode this year as you might imagine if we get close to herd immunity. Add tourism and possibly open borders to that as well.
Their online US ancillary business has grown significantly as well and with the acquisition of Smoke Cartel soon to close will also add to their numbers. Their ancillaries will also be in all the Meta stores now as well. All that said i'm not even including the possible 30 stores plus they hope to open in the next year. If you add them and most of them will be in Ontario there is no reason why they can't push $250M Cad in this fiscal year IMO.
They had 40% net margins recently which is crazy high for retail. Though they may drop a touch with the addition of Meta but if they can reach anywhere near $100M net margins this year think what that will do to their stock price.
There is a short interest of 26.83 mill shares in the most up to date data i can find. Cost to borrow is an extremely high 45.9% per annum.
How many of those are part of the placement and already sold is anyone's guess. Shorts won't want to stay that way for long at those rates. If the price starts to rise they will likely be quick to cover.
They will see if they can buy placement shares cheap on the open market on Tuesday or Wednesday and if not they will be chasing during a barrage of company news with the quiet period now lifted. Heard Raj is excited and can't wait to get out on the road and promote the story.
Cannabis sales in Canada soared 14% in December over November numbers to a new all-time record. High Tide has the largest piece of the pie so first quarter numbers should be amazing.
Year end numbers will be announced on March 1st but they will only include High Tide sales up to the OCT 2020 year end. The first quarter ending in January should be released not long thereafter and they will include the Meta merger store revenues for the first time.
Choof a green beacon today amongst a vast sea of red.
John, since you have a technical bend, here is an amazing money management group who predicted a 10 to 15 year secular bull market back in 2016 when everyone was running scared.
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I think the financing funds have to be in today for the placement shares and most likely by noon at latest tomorrow much of the selling pressure will be over.
Of course if we have a general market correction then anything's possible. If that's the case any market correction will be swift and not get any legs though because of all the fiscal stimulus still to come.
Hitif is an investment for the longer term and it's not for the faint of heart if your watching it every minute. The future is nothing but upside here.
The selling is inevitable a couple days before closing the placement. Your probably better off ignoring the price at the moment because it's all forced selling. It's all being done by those who are participating in the financing plus short selling to establish funds for their placement shares.
Good thing is it will end in the next couple days. Monday the black cloud will lift. Many of the placement shares have already been short sold and won't be available to sell again next week.
Nice to get a cannabis and general market correction out of the way this week. Looks like the powers that be are going to keep the Aphria's, Tilrays of the world down for the rest of this week so that the out of money options all expire on friday and we should see a nice rally in cannabis next week if the general market behaves.
That sets High Tide up nicely as the financing will be announced closed and Raj is free to make announcements without having to change the prospectus and ask permission every time from the financiers. A correction next week would have really sucked after already having waited for three weeks for closure.
I hate financing quiet periods they are usually killer for the stock price because it is usually kept range bound at or below the financing price until closing. The fact that HITIF blew right out of the gate upwards through all attempts to corral the price means this is a very strong company and a very in demand stock.
Verano had a 3.5 Billion market cap right out of the gate today. A little rich at that level. Stock is tight now but they have double the amount of shares if they are fully converted coming out somewhere down the line.
Better to let these things shake out for a week or two because the float usually becomes freer trading as each day passes.
Picked up more Choom today. Chart looks very bullish and nice volume surge lately. Revenues should be much increased this quarter as store count has been steadily rising. Once Covid subsides and tourism thrives again these retailers are going to have blowout revenues.
The point is money filtering into the sector will work it's way to other names as investors take profits and look to diversify. That was especially evident yesterday in many of the microcap names in Canada.
Canadian winners in those large cap names pushed up by Reddit and even Robinhood took some huge profits and distributed it into other names that they also liked. Everything was rising in unison which is a sign that the whole sector is catching a bid and that sentiment is changing.
If you look at the amount of money that flowed into SNDL for example, there was huge profit taking there and many of them love the microcaps. Yet SNDL is not really a very good investment at this time either and has not done anything but lose money for quarters on end.
Sentiment is especially turning to the cannabis retailer names because they appear to be on the verge of becoming at the very least EBITDA positive, something only a very small percentage of the grower cultivators will ever be able to say.
Well at least Aurora is up after hours on better then expected results but still lost money. Hopefully that ends the bleeding tomorrow in the rest of the high cap cannabis names. Seems High Tide is one of the handfull of names in the sector that knows how to make money. It held us in check today but the stock price is just coiling tighter and when the mood changes it's liftoff.
Is that a trick question quickfix :)
Hearing a lot of SNDL investors are starting to join the High Tide train. SNDL has been skyrocketing thanks to the Reddit crowd but IMO SNDL is a super lousy investment from a fundamental perspective. Their financials are really quite awful. The link below explains some of the Wallstreetbets Reddit foray into the cannabis stocks.
https://www.barrons.com/articles/pot-stocks-are-flying-high-again-its-not-just-reddit-51613002837
Reddit crowd starting to propel the pot stocks according to the following Barons article.https://www.barrons.com/articles/pot-stocks-are-flying-high-again-its-not-just-reddit-51613002837
With Wallstreet bets now turning their Reddit crowd towards the cannabis sector, loads of capital will filter it's way down throughout the sector.
Cannabis is the place to be right now and the retailers like Choom are a much safer place to be from a regulation standpoint. They will be the true cash cows in the sector.
Looks like the biggest fear was maybe what Jerome Powell might say especially during a crazy stratospheric move today as well as lately.
Anyways i fully expect the move up to resume here tomorrow because we have settled two of our largest ever volume days and there was a lot of benefits also to what transpired today as it allowed the brokers dealers to recalibrate also.
That was for sure one crazy market day today. Every large cap cannabis name in Canada dropped like an anchor in a matter of five minutes. It looks like everyone was really leery about how fast and how high, many of the cannabis names were flying out of the gate today. With this after several days of abnormal gains everyone was ready to pull the trigger on first sign of weakness. Fears were probably high that the fed chairman who was also scheduled to speak later might say something disasterous for the markets but he turned out perfectly dovish in the end.
The dangers of selling at market were very evident today as well as triggering all the stop losses as they picked up cheap stock. These flash crashes will become more common going forward i think. I heard today that the retail investor participation in the market has now reached almost 45% of all volume. The houses though they like the participation are probably freaking at the same time because they don't have the same control of their market as they use to and many imbalances can happen in a flash.
With many big shorting institutions now leery after taking a bath on Gamestop, we could be going into a major acceleration phase in the bull market here.