High Tide Inc. (NASDAQ: HITI)

High Tide Inc. is an Alberta-based, retail-focused cannabis company engaged in the Canadian cannabis market through a portfolio of subsidiaries. As of the AIF Date, the Corporation operates one of the largest cannabis retail chains in Canada with 218 operating retail cannabis locations, including jointly-owned store locations, across the provinces of Alberta, Ontario, Saskatchewan, Manitoba, and British Columbia. The Corporation has grown both organically and via strategic acquisitions, including Meta Growth, Smoke Cartel, FABCBD, Daily High Club, Dankstop, Blessed, and NuLeaf, to emerge as a leader in the evolving cannabis market within Canada. Its principal business focuses on bricks-and-mortar distribution and sale of cannabis and cannabis products, supported by e-commerce and medical cannabis distribution operations. The Corporation offers a suite of proprietary brands such as Dopezilla, Atomik, Puff Puff Pass, Vodka Glass, Queen of Bud, and Cabana Cannabis Co. that are well known amongst consumers.

High Tide Inc. generates revenue primarily through the sale of cannabis and cannabis accessories via its operating segments. The bricks-and-mortar segment contributes approximately 96% of total revenues from retail sales at provincially authorized cannabis store locations. The e-commerce segment accounts for approximately 3% of total revenues from U. S. and international online sales of consumption accessories and cannabis lifestyle products. The medical cannabis distribution segment contributes approximately 1% of total revenues from the distribution of medical cannabis acquired through the Remexian acquisition. Revenue is derived from sales to customers outside of High Tide and its subsidiaries across these segments.

The company operates through the following segments: bricks-and-mortar, e-commerce, and medical cannabis distribution.

• Bricks-and-mortar: This segment includes the Corporation’s Canadian bricks-and-mortar locations and the Canadian warehouse that supports the distribution of accessories and other items to Canadian stores. It operates under the Canna Cabana brand, which runs 216 branded stores across Canada. Canna Cabana’s flagship retail concept is a loyalty-focused discount club model designed to serve consumers for the long term by emphasizing value, innovation, and community. The segment also includes Meta Growth, which offers cannabis products and accessories through provincially authorized retail store locations. Proprietary brands such as Dopezilla, Atomik, Puff Puff Pass, Vodka Glass, Queen of Bud, and Cabana Cannabis Co. are offered through this segment.

• E-commerce: This segment includes the Corporation’s U. S. and international subsidiaries and the U. S. warehouse that supports the distribution of accessories and other items to U. S. and international subsidiaries. It encompasses online retailers such as Grasscity, which operates Grasscity.com, one of the world’s premier online stores for consumption accessories and cannabis lifestyle products based in Amsterdam, Netherlands. The segment also includes Smoke Cartel, a leading online retailer of glass water pipes, vaporizers, and consumption accessories in the U. S., FABCBD, a leading online retailer of Hemp-derived products including CBD oils, topicals, and gummies based in Denver, Colorado, Daily High Club, a leading online retailer of glass water pipes and vaporizers with over one million consumption accessories sold, Dankstop, a leading online consumption accessories retailer offering business-to-business services such as drop shipping and third-party logistics, and Blessed, a leading online retailer of Hemp-derived products in the U. K. These platforms generate revenue from customers primarily in the United States and internationally.

• Medical cannabis distribution: This segment includes the medical cannabis distribution operations acquired as part of the Corporation’s acquisition of Remexian. It focuses on the distribution of medical cannabis products to authorized patients and healthcare providers. The segment operates under the regulatory framework governing medical cannabis in Canada. Specific details regarding brand names or product lines under this segment are not detailed in the provided filing excerpt. The segment contributed approximately 1% of total revenues during the financial year ended October 31, 2025.

High Tide Inc. holds a leading position as one of the largest cannabis retailers in Canada, with a significant retail footprint and a diversified portfolio of e-commerce and medical cannabis operations. The company competes with other major cannabis retailers such as Canopy Growth, Aurora Cannabis, and Tilray, as well as specialized e-commerce players in the cannabis accessories space. Its competitive advantages include its scale, proprietary brand portfolio, integrated retail and distribution network, and experience in executing strategic acquisitions. The company’s bricks-and-mortar loyalty-driven model under Canna Cabana differentiates it in the Canadian retail cannabis market.

High Tide Inc. serves adult consumers purchasing cannabis for recreational use through its bricks-and-mortar and e-commerce channels, with a primary focus on Canadian provincial markets. The company also serves medical cannabis patients through its distribution segment. Its e-commerce subsidiaries serve customers in the United States and internationally, particularly for cannabis accessories and Hemp-derived products such as CBD. Specific customer names are not disclosed in the filing, but the company’s customer base includes individual retail consumers, adult-use cannabis consumers, medical cannabis patients, and consumers of Hemp-derived wellness products across North America and Europe.