High Tide Inc. (“High Tide” or the “Company”) (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, announced today that the Company and Rahim Kanji, Chief Financial Officer of the Company, have mutually agreed to part ways effective February 28, 2023. The Company wishes to thank Rahim for his contributions over his tenure and for his continued help and efforts in the transition of his role and responsibilities. We wish him success in his future endeavors.
To fill the vacancy following Mr. Kanji’s departure, the Company is pleased to announce the appointment of Sergio Patino as interim Chief Financial Officer, effective February 28, 2023. Mr. Patino is a Chartered Professional Accountant (CPA, CMA), and has a Master’s in business from University of Alberta. He joined High Tide as a Financial Consultant in November of 2022 bringing more than 20 years of global experience across multiple industries. Prior to joining High Tide, he was the America’s Chief Financial Officer of a large Mining Construction company. Prior to that he led the transformation of a global Supply Chain group. He has work experience in Finance, Strategy, Supply Chain, Project Accounting & Controls, Process and Systems improvement, gained from roles held in large publicly traded companies, in the Oil & Gas, Mining and Heavy Construction industries.
CORRECTED DISCLOSURE
Further to the Company’s press release dated January 30, 2023, the Company has refiled its: (i) audited consolidated financial statements for the fiscal years ended October 31, 2022 and 2021 (the “Amended Annual Financial Statements”) and (ii) associated management’s discussion and analysis for the fiscal years ended October 31, 2022 and 2021 (the “Amended MD&A”), which were originally filed on January 30, 2023.
The Amended Annual Financial Statements were filed to correct the following typographical errors:
1. Note 26 – Segmented Information: erroneously referred to an amount of “$269,853” for the “Total assets” in the retail segment as at October 31, 2022, which has been corrected to “$241,394” (in thousands of Canadian dollars);
2. Note 8 – Intangible Assets and Good Will: erroneously disclosed the forecasted growth rates of revenue for the years after the first year for each of the following E-commerce cash generating units:
a. under the subheading “Ecommerce retail”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “4.7% to 10.7%” to “5% to 6%”;
b. under the subheading “Grasscity”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “-3.3% to 6.0%” to “3% to 5%”;
c. under the subheading “Smoke Cartel”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “3.0% to 20.3%” to “3% to 5%”;
d. under the subheading “FABCBD”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “0.7% to 6.6%” to “5% to 7%”;
e. under the subheading “Blessed CBD”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “-0.1% to 6.8%” to “5% to 7%”; and
f. under the subheading “NuLeaf”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “5.7% to 27.6%” to “6% to 7%”.
The Amended MD&A was filed to correct the following typographical errors under the following headings:
1. Retail Segment Performance, under the subheading “Fabcbd.com”, the number of orders processed for the during 2022 has been corrected from “51,920” to “69,845”;
2. Impairment Loss, under the subheading “Ecommerce retail”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “4.7% to 10.7%” to “5% to 6%”;
3. Indefinite life intangible assets: erroneously disclosed the forecasted growth rates of revenue for the years after the first year for each of the following E-commerce cash generating units:
a. under the subheading “Grasscity”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “-3.3% to 6.0%” to “3% to 5%”;
b. under the subheading “Smoke Cartel”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “3.0% to 20.3%” to “3% to 5%”;
c. under the subheading “FABCBD”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “0.7% to 6.6%” to “5% to 7%”;
d. under the subheading “Blessed CBD”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “-0.1% to 6.8%” to “5% to 7%”; and
e. under the subheading “NuLeaf Naturals”, the forecasted growth rate range of revenue for the years after the first year has been corrected from “5.7% to 27.6%” to “6% to 7%”.
These changes have no material impact on the Company’s revenues, earnings or financial position. All other information, including numbers and totals, contained in the Amended Annual Financial Statements and Amended MD&A remains unchanged. Although the Company does not consider these to be material errors, the Company has filed the Amended Annual Financial Statements and Amended MD&A in the interest of full disclosure and transparency.
The Amended Annual Financial Statements and Amended MD&A can be accessed by visiting the Company’s website at www.hightideinc.com, and its profile pages on SEDAR at www.sedar.com and EDGAR at www.sec.gov. The Amended Annual Financial Statements and Amended MD&A replace and supersede the previously filed annual financial statements and associated management’s discussion and analysis and therefore the original annual financial statements and associated management’s discussion and analysis should be disregarded. Concurrent with filing the Amended Financial Statements and Amended MD&A, the Chief Executive Officer and Chief Financial Officer have filed the appropriate Form 52-109F1R – Certification of Refiled Annual Filings.
