High Tide Inc (OTCMKTS:HITIF) posted $38.3 million (up 179% YoY) revenues in Q1 2021. The company included the revenues of META Growth Corp, which it took over on November 18, 2020.
Following the takeover of META, High Tide became a leading player in retail cannabis in terms of annual revenues. Its shares trade higher on TSX Venture Exchange.
Canadian operations post significant revenues
Its profits surged by a whopping 208% in Q1 2021 to $14.8 million. The company earned revenues of $0.2 million from global operations and $3.9 million in the US. Its Canadian operations contributed revenues of $34 million.
Its retail sales accounted for $36.8 million, whereas wholesale accounts for $1.5 million in Q1 2021. High Tide maintains a cash balance of $16.6 million in January 2021.
CEO and President of High Tide, Raj Grover, said the company is excited to report excellent growth in Q1 2021 despite the challenges posed by coronavirus-related restrictions. It store count in Canada exceeded 80.
The teams of High Tide worked prudently in the recent period to integrate the growth of META into its family. As a result, the combined company accomplished targeted synergies of 71%.
High Tide is incorporating changes in its business model to meet the evolving needs in Canada. Simultaneously, the company is also focusing on expanding its operations in Europe and the US to deliver positive EBITDA.
Extends credit facility maturity date
High Tide extended the maturity date to December 31, 2021, for a credit facility of $10 million. Windsor Capital agreed to extend the credit facility’s maturity to December 31, 2022, by reducing the interest rate to 10% from 11.5%.
Inaugurates three cannabis retail locations
High Tide inaugurated three retail cannabis locations that include one in Calgary, Alberta; one in Toronto, Ontario; and one in Guelph, Ontario under META and Canna Cabana banners.
Developments after Q1 2021
High Tide raised $23 million through a bought deal offering. It also converted $23 million debt into its common shares.
High Tide submitted Form 40F with the US SEC to list its shares on NASDAQ. It also took over Smoke Cartel, Inc. for $8 million.