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Canaccord Genuity
Cannabis Conference
Grand Hyatt Hotel – New York, NY
May 14, 2019
Vertically-Integrated Enterprise
Celebrating 10 Years of Business in 2019
Cannabis Retail-Focused
DISCLAIMERFORWARD-LOOKING STATEMENTS
This presentation is strictly confidential and must not be copied, distributed, circulated or disseminated without the express written consent of High Tide Inc. (the “Company”). This
presentation does not constitute an “offering memorandum” as such term is defined under Canadian securities legislation and confers no statutory, contractual or other similar rights
of rescission or other action or remedy to any recipient under securities legislation in Canada, the United States or other jurisdiction for misrepresentation or otherwise. No securities
are being offered for sale hereunder. This document does not provide full disclosure of all material facts relating to the securities offered. Readers must conduct their own analysis
and review of the Company and of the information contained in this presentation and must contact their own professional advisors.
This presentation contains “forward-looking information”. Forward-looking information includes, without limitation, statements regarding macroeconomic factors, future demand and
supply dynamics for cannabis, production and development forecasts and timelines, estimates as to the demand for cannabis and cannabis paraphernalia, future cannabis prices,
solutions to past problems, valuations, capital and operating expenditures, ability to obtain financing, future currency exchange rates, government regulation of cannabis, and
environmental risks. Similarly, forward-looking information also includes economic analysis of the business of the Company and the results thereof, including, without limitation, cash
flow projections, estimated capital and operating costs, and all economic analysis derived from such estimates and forecasts. In general, forward-looking information can be identified
by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “projects”, “forecasts”, “budget”, “estimates”, “schedule”, “intends”, or variations of such
words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. The forward-looking information is based
upon factors and assumptions the Company believes is reasonable based on information currently available to them. Forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause the actual results, level of activity, performance of the Company to differ from forward-looking information. There can be no
assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except as required under applicable
securities laws.
Financial outlook and future‐oriented financial information contained in this presentation about prospective financial performance, financial position or cash flows is based on
assumptions about future events, including economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available.
In particular, this presentation contains revenues, gross margins and earnings before interest, taxes, depreciation and amortization for 2018 and 2019. These projections contain
forward‐looking statements and are based on a number of material assumptions and factors set out above. These projections may also be considered to contain future oriented
financial information or a financial outlook. The actual results of the Company’s operations for any period will likely vary from the amounts set forth in these projections, and such
variations may be material. See the above for a discussion of the factors that could cause actual results to vary. The future oriented financial information and financial outlooks
contained in this presentation have been approved by management as of April 1, 2019. Readers are cautioned that any such financial outlook and future‐oriented financial
information contained herein should not be used for purposes other than those for which it is disclosed herein.
These materials may contain inaccuracies or typographical errors. The Company shall not be responsible for any errors or omissions contained in these materials and do not
guarantee the accuracy, completeness or timeliness of the information contained herein.
See a description of the readers’ rights under “Statutory Rights of Action for Damages or Rescission” at the end of this presentation.
Management Team
3
Raj GroverFounder, President & Chief Executive Officer
Mr. Grover is the founder of High Tide and its
subsidiary companies of RGR Canada,
Smoker’s Corner and Canna Cabana, while
also being the co-founder of High Tide’s.
newest subsidiary, Famous Brandz. Raj
started Smoker’s Corner in 2009 and RGR
Canada in 2011 and has been operating as a
pioneer in the cannabis accessories industry
ever since.
Currently, he is a national franchisor and
entrepreneur with 17 years of experience in
building and selling successful companies.
Mr. Grover leads the industry in
manufacturing capabilities and has built the
largest network of comparable retail stores in
Canada.
In his personal time, Raj is passionate about
supporting children’s charities that benefit the
underprivileged and those struggling with
health issues and other life challenges.
Nick Kuzyk, MBA
Chief Strategy Officer & SVP Capital Markets
Mr. Kuzyk joined High Tide in April of 2018
and brings over 16 years of experience in
mergers and acquisitions, investor relations,
and business development. From early-stage
ventures to large cap corporations, Nick has
developed a balanced expertise rooted in
both quantitative and qualitative learnings
from the areas of corporate strategy, financial
analysis and external communications.
Mr. Kuzyk holds both an HBA and MBA from
the Richard Ivey School of Business (Ivey)
at Western University, is the Treasurer of the
Alberta chapter of the Canadian Investor
Relations Institute (CIRI) and has also
completed the CIRI/Ivey Strategic
Management of Investor Relations Program.
In his personal life, Mr. Kuzyk spends time
volunteering in the community for the benefit
of causes about which he is passionate, and
has traveled to 47 countries to date.
Andy PalalasChief Revenue Officer
Mr. Palalas joined High Tide in April of 2018
as part of the corporate reorganization of
Famous Brandz, where he was employed
since 2016. He is responsible for developing
distribution channels, sourcing new market
opportunities and overseeing High Tide’s
commercial portfolio. Andy is a business
growth and sales professional with a decade
of experience in implementing sales programs
for established corporations and start-ups alike.
With extensive experience in the loyalty
marketing sector, a track record of rapid
growth in franchise sales and operations as
well as ground-level business development
through to overarching marketing strategy,
Andy has most recently taken Famous
Brandz from inception to one of the leading
manufacturers of smoking accessories
internationally.
A relentless new business hunter and
relationship builder, Andy is determined to
fulfill High Tide’s vision of becoming the
largest vertically integrated cannabis
enterprise in the world.
Alex MackayChief Operating Officer
Mr. Mackay joined High Tide in February 2019
after a 21-year career at Shaw
Communications, one of Canada’s largest
telecommunications firms. Known as an
adaptable leader with a track record of driving
breakthrough results, Alex has extensive
operational experience including roles as
Senior Director of Contact Centers and Retail
Operations, National Director of Field Support
Operations and National Sales Director.
Key milestones include the achievement of
industry-leading customer satisfaction scores,
proven increases to incremental sales and
revenues and the creation and
implementation of a suite of new Standard
Operational Practices adopted across a +10K
employee organization.
Mr. Mackay’s achievements have been
grounded in exceptional people practices,
including targeted acquisition of top talent and
building high-performing teams. Raised in
Victoria BC, Mr. Mackay completed his degree
at the University of Victoria and moved with
his family to Calgary in 2012.
Board of Directors
4
Raj GroverExecutive Chairman
Mr. Grover is the founder of High Tide and its
subsidiary companies of RGR Canada,
Smoker’s Corner and Canna Cabana, while
also being the co-founder of High Tide’s
newest subsidiary, Famous Brandz. Raj
started Smoker’s Corner in 2009 and RGR
Canada in 2011 and has been operating as a
pioneer in the cannabis accessories industry
ever since.
Currently, he is a national franchisor and
entrepreneur with 17 years of experience in
building and selling successful companies.
Mr. Grover leads the industry in
manufacturing capabilities and has built the
largest network of comparable retail stores in
Canada.
In his personal time, Raj is passionate about
supporting children’s charities that benefit the
underprivileged and those struggling with
health issues and other life challenges
Arthur KwanCEO, CannaIncome Fund
CannaIncome Fund is a private investment
company focused on the cannabis and
cannabis-related sectors. Its aim is to provide
yield and capital appreciation upside, via
valuation arbitrage opportunities primarily
between private and public markets.
Mr. Kwan has over 18 years of investment
banking, capital markets, and private equity
experience, most recently as the Managing
Director of Investment Banking for Paradigm
Capital. Prior thereto, he has held
increasingly senior investment banking
positions with Scotia Capital, Peters & Co.,
and PI Financial. Mr. Kwan has led the
origination, negotiation, and execution of
many investment banking mandates,
including private placements, initial public
offerings, short-form prospectus offerings,
mergers, acquisitions, and divestitures, with
an aggregate transaction value of over $1
billion.
Nader BenAissaExternal Legal Counsel
Mr. Ben Aissa is a lawyer at Hooey and
Company Lawyers in Calgary, Alberta.
He specializes in commercial law with a
wide range of experience in corporate
governance, equity financing, and
mergers and acquisitions. Keeping a
close eye on cannabis law, he is
preparing company infrastructure for the
upcoming change in cannabis
legislation.
In 2013, Nader received his Doctor of
Law (JD) from the University of British
Columbia. Mr. Ben Aissa was called to
the Bar and admitted as a Member of
the Law Society of Alberta in 2015.
Mr. Kaushal is a managing director in the Deals
practice of PwC Canada’s Corporate Finance
group. Nitin has more than 25 years experience
in the financial investing, life sciences,
consumer health care, health care services and
medical device industries. In addition, he has a
strong involvement with PwC’s
Pharmaceuticals and Life Sciences team to
bridge the financial and scientific areas.
Nitin’s past experience includes board of
directorships with pharmaceutical and health
care companies. He has also held senior roles
in investment banking, venture capital and
consulting firms. Brendan Wood International
ranked Nitin as the Top Health care Investment
Banker in 2008/2009.
Mr. Kaushal has performed over 40 merger,
acquisition, strategic advisory, and licensing
assignments. He was an advisor to two of the
top five global pharma companies and M&A
advisor on one of the top licensing deals in
Canadian health care history. Nitin is a regular
speaker at conferences and is a past educator
at the University of Toronto.
Nitin KaushalManaging Director, PwC Canada
5
Vision
Grow organically and through acquisition to become
a valuable, vertically-integrated, retail-focused
enterprise with global operations
StrategyDifferentiated Leadership Accretive Growth
High-quality focus on retail – corporate and franchise
Loyal customers via strong brands, responsible sales practices
and excellent service
Margin capture through vertical integration
Optimized operations – manufacturing and distribution
Organic initiatives
Joint ventures
Asset acquisitions
Corporate transactions
Company History
Growth to 3 Smoker’s Corner
Locations
2009 2012 20182015
Founded
Founded
Co-founded
Growth to 7 Smoker’s Corner
Locations
Welcomed to the
Canadian Franchise
Association
Growth to 19 Smoker’s Corner
Locations
(13 Current Locations)
Founded
Acquired
remaining 50% of
Co-founded
Founded;
15 Current Locations
Listed as HITI on
Dec. 17, 2018
Acquired
1st franchised Smoker’s Corner
location
6
10 Years of Operations; 6 Vertically-Integrated Businesses
7
WHOLESALE RETAIL
Canada’s premiere distributor and
manufacturer of
cannabis accessories
4,300 SKUS with 75%
of our catalog designed
and manufactured to
maximize margins
27,000 sq ft facility in
Calgary, Alberta
Exclusive global manufacturers and
distributers of licensed
smoking accessories
In partnership with
celebrity brands like
including but not
limited to Snoop
Dogg, Cheech &
Chong’s Up in
Smoke, Trailer Park
Boys, Guns N’ Roses
and Sublime
Positioned to become one of
Canada’s largest cannabis retail
networks, launched in 2018
Establishing new locations and
retrofitting existing stores for top-tier
speed to market; 15 branded locations
Being deployed selectively to
leverage existing real estate
partnerships
Establishing a recognized and
successful brand of independent retail
stores across Alberta and Ontario
One of the largest chains of cannabis accessory stores in Canada
13 locations supplied directly by RGR
(8 franchises and 5 corporate stores)
Headquartered in Amsterdam,
Grasscity.com is the world’s premier
online store for smoking accessories and
cannabis lifestyle products
One of the most searched and visited smoking
accessories e-retailers, with approximately 5.8
million site visits annually
Bricks & Mortar Online
Established in all Downstream Markets
Wholesale Segment
RGR Canada
9
Distribution network
extends from our
27,000 sq ft facility in
Calgary, AB
National >4,300 SKUSExclusive 10 Years
Manufacturing contracts
with industry leading
factories in China, the
United States and the
European Union
Experience in the design
and branding of cannabis
accessories that sell
Extensive product catalog
with 75% manufactured in-
house
RGR Canada
10
Selection of Proprietary Brands
Atomic Dopezilla Evolution
Puff Puff Pass Vodka Zoom Zoom
LIC
EN
SE
S
1111
12
Retail Segment
Smoker’s Corner
14
Smoking Accessories & Cannabis Lifestyle Products
10 Years of Retail Experience
13 Current Locations Turn-key Model Proven Over Time
8 franchises
5 corporate stores
7 previous locations being converted
to Canna Cabana stores
CFA-approved
franchise program
enables rapid
deployment in key
markets
Average location
generates $380k/year
Top location generates
$850k/year
Over 170,000 retail customer interactions per year, in-store and online
15
13 existing locations
TODAYOne of Canada’s
Largest
Counter-Culture
Chains
Scalable Franchise Model
1 new location opening in 1H19
15
Large U.S.
Customer Base
90% of orders from customers in
the U.S.
Order fulfilment in Europe and
North America in 2019
Large opportunity to add new
customers and products
Forums & Social
Media34 million unique users in
Grasscity Forums since
inception
640,000 current forum members
75 million page views per year
265,000 followers on Facebook,
Instagram and YouTube
16
World’s top
accessories e-retailer
20-year history as online store
5.8 million site visits per year
0.6 million customers in database
65,000 orders per year
80,000 newsletter readers
34,000 certified online reviews
Grasscity.com
17
“World’s Best Online Head Shop”
He
ad
sh
op
: g
ras
sc
ity.c
om
Fo
rum
s:
foru
m.g
ras
sc
ity.
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m
Strategic Rationale for the Acquisition
18
Manufacturing• Design & Production
• Brand Licensing
Distribution• Optimized Logistics;
ship from North America
to local customers
• Multiple Warehouses
Retail• Established Online
• SEO & Social Media
Access to Europe for
High Tide’s wholesale
segment
Margin expansion through
vertical integration
Sale of similar products
to similar customers
Canna Cabana
19
In Alberta, 12 corporate stores; 1 franchise
In Ontario, 2 branded stores
Lethbridge
Whitecourt
Grande
Prairie
CalgaryOkotoks
Beaumont
Edmonton
Approachable - Playful - Sophisticated
Canna Cabana
20
Projected Expansion 2018 - 2020
FIRST & FASTEST TO MARKETProjected
Expansion
2018-2020
• Priority stakeholder in key municipalities across Canada
• Some existing stores being retrofitted to expedite readiness, subject to zoning
• New stores currently under construction; leases being secured in multiple provinces
As at
May
2019
Current
Stores
Open
Provincial
Licence
Applications
Development
Permits Leases
Target
Number of
Stores
AB 13 36 36 36 37
BC 0 0 0 2 8
SK 0 1 Wholesale1 0 1 2
ON2 2 0 0 20 75
Total 15 37 36 59 122
1. Application submitted by a High Tide wholly-owned subsidiary named Kush West Distribution Inc.
2. Current stores open in Ontario are owned and controlled by winners of the AGCO’s EOI lottery.
20
Kush Bar
21
Our Next Retail Cannabis Concept: Modern - Open - Relaxed
CS
E:H
ITI
COMPANY RETAIL STORE BRAND
PRIMARY
STOCK
SYMBOL
RETAIL EXPERIENCE
(Brick & Mortar)
RETAIL EXPERIENCE
(Online)
WHOLESALE
EXPERIENCE
LICENSED
PRODUCTION
Market Cap
(MM)
as at 08/05/19
Revenue
(MM)
(TTM)
Market
Cap /
Revenue
Choom
HoldingsChoom
CSE:
CHOOX X X
Acquired LP
applicants in BC
and SK
$89 $nil n/a
Fire &
FlowerFire & Flower
TSXV:
FAF
Cannabis retail since
2018
Some accessories;
online cannabis sales in
SKX X $141 ~$10 ~14.1x
Inner Spirit
Holdings SpiritleafCSE: ISH
Franchises; watches
and fashion accessoriesX X X $39 $5.8 6.7x
National
Access
Cannabis
MetaTSXV:
META
Cannabis retail since
2018
Medical consultation
and deliveryX X $143 $27 5.6x
Solo
GrowthYSS
TSXV:
SOLO:
Cannabis retail since
2019X X X $40 $nil n/a
WestleafPrairie
Records
TSXV: WL Cannabis retail since
2019X X
Indoor cultivation
facility under
construction
$95 $nil n/a
AVERAGE: $91 $14.3 6.4x
High Tide
Canna
Cabana,
KushBar
CSE:
HITI
Smoking accessories
since 2009; cannabis
retail since 2018
Grasscity has ~20
years of experience
as the premier e-
retailer of smoking
accessories
9 years of
proprietary and
licensed
cannabis
accessories
X $72 $11.0 6.5x
Canadian Retail Cannabis Landscape
CS
E:H
ITI Growth by Acquisition
23
Completed multiple transactions of various types to date:
Grasscity.com
3 AGCO Lottery Winners in Ontario
2 Retail Cannabis Stores in Saskatchewan
7 Development Permits for Retail Cannabis Stores in Alberta
Goal of growing the retail and distribution business by acquisition domestically as well
as in the US, EU and elsewhere, as appropriate, through various segments:
Thousands of existing customer relationships
Over 300 vendors in a current database
Industry partnerships also yield transaction opportunities
Currently assessing several accretive acquisitions in the manufacturing, wholesale
and retail sectors across Canada
24
December 19, 2018
High Tide Closes its Previously Announced
Acquisition of Grasscity
December 14, 2018
High Tide to Commence Trading on the CSE
under “HITI” Stock Symbol on December
17th
January 9, 2019
High Tide featured at AltaCorp Institutional
Investor Conference, Lift & Co. Expo and
Benzinga Cannabis Capital Conference
December 13, 2018
High Tide Receives $10 Million Investment
from Aurora Cannabis as Part of First
Tranche of Convertible Debenture Offering
Recent Company News
January 24, 2019
High Tide Announces the Opening of its Sixth
and Seventh Canna Cabana Stores
January 30, 2019
High Tide to Acquire Two Cannabis Retail
Locations in Saskatchewan
February 4, 2019
High Tide Announces Expansion into Ontario
with Cannabis Retail Lottery Winner
February 12, 2019
Selected to Assist a Second Winner of the
Ontario Cannabis Retail Lottery
February 27, 2019
High Tide Announces the Opening of its
Tenth Canna Cabana Store
March 28, 2019
High Tide Announces the Opening of its 11th
Canna Cabana Store
March 21, 2019
High Tide Selected by Third Lottery Winner
to Help Open Canna Cabana Toronto Store
April 15, 2019
High Tide Announces Licenses from AGCO
to Open Canna Cabana-Branded Stores in
Hamilton and Sudbury
April 23, 2019
High Tide Records 234% Increase in 4/20
Weekend Sales
April 22, 2019
High Tide Receives $8.4 Million from First
Tranche Closing of Convertible Debenture
Offering
April 8, 2019
High Tide Announces the Opening of its 13th
Smoker’s Corner Store
CS
E:H
ITI High Tide Highlights
25
• Over a decade in
business
• Understand the margin
diversification of flower
vs. accessories
• Active Acquirer, last 12
months approx. $20
million in acquisitions,
giving us a national and
global footprint
• Aurora Cannabis, Aphria
and FSD Pharma are our
partners and investors
CS
E:H
ITI Historical Financials
Summary Income Statements Fiscal 2018 (Audited) 1Q19 (Unaudited)
Revenue $8,748,766 $5,000,688
Gross Margin 3,109,689 1,789,583
Net Loss for the Year ($4,532,551) ($3,821,515)
Summary Balance Sheet – 10/31/18 (audited) Summary Balance Sheet – 01/31/19 (unaudited)
Cash & Equivalents $8,198,164 Cash & Equivalents $6,962,634
Accounts Receivable 855,221 Accounts Receivable 1,449,881
Inventory 3,463,076 Inventory 4,805,723
Non-Current Assets 8,412,907 Non-Current Assets 21,612,575
Total Assets $25,922,494 Total Assets $39,124,925
Current Liabilities $2,589,770 Current Liabilities $3,418,170
Non-Current Liabilities 17,313 Non-Current Liabilities 10,470,156
Total Equity 23,315,411 Total Equity 25,236,599
Total Debt & Equity $25,922,494 Total Debt & Equity $39,124,925
26
CS
E:H
ITI Shares Outstanding
27
“2LY” LISTED ON
“HITIF” LISTED ON
Basic Common Shares Outstanding 201,103,824
Common Shares to be issued on exercise of
Warrants underlying the Special Warrants
18,364,236
Common Shares to be issued on exercise of Prior-
Issued Warrants
1,194,590
Common Shares to be issued on exercise of
outstanding Broker Warrants
2,387,350
Common Shares to be issued on exercise of
Warrants underlying the Broker Warrants
1,193,675
Common Shares to be issued on exercise of
outstanding Prior-Issued Warrants
670,680
Common Shares to be issued on exercise of
Warrants Issued with Debentures
11,146,667
Options 11,035,000
Fully-Diluted Common Shares Outstanding 247,096,022
Share Capitalization TableAs at
May 1, 2019
(403) 265-4207
High Tide Inc.
11127 15th St. NE, Units #111-113
Calgary, AB T3K 2M4
HighTideInc.com
1.888.9.420.420
Raj Grover
Founder, President, CEO & Chairman
Nick Kuzyk, MBA
Chief Strategy Officer & SVP Capital Markets
28
Share Price1: $0.37
Avg. Daily Volume2: 379,242
Share Outstanding (basic): $201 million
Market Capitalization: $72 million
Convertible Debentures3: $20 million
Less: Cash on hand4: ($9 million)
Enterprise Value: $83 million
TICKERS:
CSE:HITI
OTC:HITIF
FRA:2LY
1 May 8, 2019. 2 Since December 17, 2018. 3 Estimated as at May 1, 2019 4 1Q19 unaudited interim financials. 5 For the trailing 12-
month period ending January 31, 2019.
TTM Revenue4
$11.0 million
TTM Gross Margin4
$3.4 million
Total Assets5
$39.1 million
Total Employees3: 135
