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High Tide Has Best Year Yet

High Tide Inc. released its year-end 2020 financial results, highlighting the massive boons and growth it has seen this year.

By the end of the fourth quarter of 2020, High Tide had earned a total of $83.3 million, growing 166% over the year, leaving a gross profit of $30.8 million and a gross profit margin of 35%. The company reported $75 million in retail revenue, more than three times the year before—and this is before the acquisition of META Growth Corp. was closed. Before the acquisition was finalized, High Tide reported $7.5 million in cash on hand, but today that number has grown to $38 million.

President and CEO of High Tide, Raj Grover, is pleased with what the company accomplished in the 2020 fiscal year, saying, “Despite the global slump in retail sales associated with the pandemic, and thanks to the tireless efforts of our team, we closed the year with approximately $8 million in Adjusted EBITDA making 2020 the best year in High Tide’s history. We continued to run our operations tightly, ending the year off with the record levels of revenue and Adjusted EBITDA.”

On top of High Tide’s record EBITDA, one of the biggest stories of the year was its acquisition of META Growth Corp. The move immediately made the combined company the largest cannabis retailer in Canada as measured by revenue, and with 72 stores to date, it is constantly neck-and-neck with other leaders for the largest retail footprint. It has also allowed the company to extend the maturity dates of debt agreements and utilize new credit opportunities granted to them by the merger, including converting $29 million in debt into the company’s common shares.

High Tide continues to grow by opening strategically placed locations in the concentrated Alberta market and by focusing on growth in the Ontario Market. It hopes to reach 30 open stores in the province by Fall 2021 when the ownership cap there is set to increase from 30 stores to 75. As more states legalize recreational cannabis south of the border, the company is looking forward to expanding into the US market, as well.