High Tide Inc. (NASDAQ: HITI)

High Tide Inc. is a cannabis company based in Alberta that focuses on retail and also manufactures and distributes consumption accessories.

As of the filing date, it operates 191 branded retail cannabis stores across Alberta, British Columbia, Manitoba, Ontario and Saskatchewan, making it one of the largest cannabis retailers in Canada.

The company follows a vertically integrated model, combining brick and mortar sales, ecommerce platforms and wholesale distribution of proprietary and third party products.

High Tide generates revenue primarily from the sale of cannabis and accessories through its retail store network, which accounted for approximately 93% of total revenue in the fiscal year ended October 31, 2024.

The remainder comes from its ecommerce channels, which contributed about 7% of revenue, and from wholesale distribution of products such as rolling papers, vaporizers and glassware to retailers and distributors worldwide.

The company operates through the following segments.

• Canna Cabana: This segment owns and operates a chain of 189 branded cannabis retail stores offering a wide selection of cannabis products and accessories through provincially authorized locations.

• Meta Growth: This segment operates a secondary retail cannabis business with additional storefronts selling cannabis products and accessories under various banners.

• Grasscity Entities: This segment runs the Grasscity.com online platform, a global retailer of smoking accessories, cannabis lifestyle products and hemp derived CBD items, primarily serving customers in the United States.

• Valiant Canada and Valiant: This segment designs, manufactures and distributes proprietary cannabis accessories such as rolling papers, pipes and vaporizers, supplying both business to business and business to customer channels internationally.

• Smoke Cartel: This segment operates an online marketplace specializing in glass water pipes, vaporizers and hemp derived CBD products, with a focus on fast shipping and reliable customer service.

• FABCBD: This segment is an online retailer of hemp derived CBD products, offering oils, topicals, gummies and pet products to customers across the United States.

• Daily High Club: This segment provides an online retail platform for glass water pipes, vaporizers and subscription boxes, supported by an active social media presence and influencer partnerships.

• Dankstop: This segment runs an ecommerce site featuring a broad assortment of consumption accessories, including bongs, pipes and vaporizers, and also offers business to business logistics services.

• Blessed: This segment markets hemp derived CBD products in the United Kingdom, emphasizing affordable pricing, rapid shipping and personable customer service.

• NuLeaf: This segment produces high potency cannabinoid extracts and tinctures from a cGMP certified facility, selling directly to consumers through its ecommerce platform.

Within the Canadian cannabis retail sector, High Tide holds a leading position due to its extensive store footprint and vertically integrated operations, which allow it to control product quality, pricing and distribution.

The company competes with other licensed cannabis retailers and producers, leveraging its integrated model as a key competitive advantage.

High Tide serves individual consumers purchasing cannabis for recreational or medicinal use, as well as wholesale clients such as vape shops, head shops and online retailers that acquire its accessory brands.

Its ecommerce platforms additionally reach a global audience of adult consumers seeking smoking accessories and hemp derived CBD products.