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    Andrew Semple • Echelon Capital Markets

    Andrew Semple's questions to High Tide Inc (HITI) leadership

    Andrew Semple's questions to High Tide Inc (HITI) leadership • Q1 2025

    Question

    Andrew Semple questioned if the recent acceleration in Canadian cannabis sales could be linked to a temporary HST break on other consumer goods, and what trends have been observed since. He also asked about the e-commerce segment's year-over-year revenue decline, seeking to understand if factors beyond the loyalty program launch, such as one-time items, were at play.

    Answer

    President and CEO Harkirat Grover expressed uncertainty that the HST break was the primary driver for sales growth, suggesting it was more likely a market normalization after eight months of negative growth. He noted momentum has continued into the current quarter. For the e-commerce segment, Grover explained that seasonality was a major factor, as the launch of the new pricing model coincided with a seasonally weaker period compared to the strong holiday quarter. He emphasized the long-term strategic value of the e-commerce platform and highlighted a 50% increase in international ELITE members in the last six weeks as a positive sign.

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    Andrew Semple's questions to High Tide Inc (HITI) leadership • Q4 2024

    Question

    Andrew Semple sought clarification on the 2025 new store outlook, asking if M&A would be incremental to the 20-30 store target, and inquired about the recovery of Canadian cannabis demand and the market growth outlook.

    Answer

    Executive Harkirat Grover confirmed the 20-30 store target is for organic growth, with any M&A being incremental. He noted that while sales picked up strongly in Q4, with 3% sequential same-store sales growth, the market remains challenging due to illicit competition. He believes High Tide is well-positioned to benefit as weaker competitors continue to exit the market.

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    Andrew Semple's questions to High Tide Inc (HITI) leadership • Q3 2024

    Question

    Andrew Semple asked for an early outlook on 2025 store growth targets and the reasons for lower lease payments despite significant store expansion.

    Answer

    President and CEO Harkirat Grover projected that 2025 organic store growth would mirror 2024's target of 20-30 stores, supplemented by disciplined M&A. He explained that lease payments are decreasing because the company is securing better rates, focusing on smaller store footprints, and successfully renegotiating legacy leases on more favorable terms as it has become a premier tenant for landlords.

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    Andrew Semple's questions to High Tide Inc (HITI) leadership • Q2 2024

    Question

    Andrew Semple inquired about store opening plans outside of Ontario and asked about the performance and ramp-up of new Ontario stores opened year-to-date.

    Answer

    President and CEO Raj Grover confirmed Ontario remains the primary focus but reiterated a long-term 300-store target in Canada, which includes adding 40-50 stores across Alberta, Saskatchewan, and Manitoba. He acknowledged that the ramp-up pace for new Ontario stores has slowed due to intense competition but expects this to improve as competitor closures accelerate and drive sales disproportionately to High Tide.

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