 Hi guys, how you doing? This is Rich here. We have a Rich TV live and I have another company that I'm bringing to you today called High Tide. Now, this is a company that's actually a vertically integrated Alberta based downstream cannabis corporation focused on manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products. Their symbol in Canada on the CSE exchange is HITI. The symbol on the OTC exchange is H-I-T-I-F the symbol in Frankfurt, Germany is 2-L-Y. Their market capitalization is around 70 million shares outstanding are at 207 million their average daily volume is around 583,000 shares they currently have a hundred seventy three employees and their total revenue is around 15.9 million dollars. Now what I want to do is I want to go over some of the details of this company because I think it has a lot of potential and it's currently trading right now as we speak at 21 and a half cents in America with very little volume, which means very few people even know this company exists yet and in Canada it's trading right now as we speak at 29 cents and it's only traded as far as volume today Very small volume 84,000 shares so it's very very Small volume which leads me to believe that very few people know that this company is out there yet Which could be a great buying opportunity for investors now I want to talk to you about some of the key points of H-I-T-I-D. First of all They have been in the business for 10 years. They have 10 years of retail experience They are in a major bricks and mortar and e-commerce player Vertically integrated to capture accessory margins Stores are stocked with cannabis products and proprietary accessories and they are an operator and a franchise or So there is franchise possibilities with H-I-T-I-D. So the potential for H-I-T-I-D has so much upside What makes them unique and different? Ten-year head start on the industry selling accessories to cannabis enthusiasts Only company that manufactures and designs thousands of its own smoking accessories and cannabis Lifestyle products that is a huge huge selling factor now some of their competitors are big names and brands like Medman fire flower Green Lane and Bob HQ on the retail side They acquired grass city a 22 year old business and they are looking to grow by acquiring other companies So they have an acquisition model They have a very difficult to replicate business their wholesale side Raj has been able to create a network of manufacturers and agents to make products in China Figured out who are high-quality factories and who are not smuggled glass blowers over to China Train them to make glass to their standards Accumulated ten licenses now, which is hard to get and take time on the retail side There are six companies trying to max out on locations in Canadian provinces high tide fire flower National access cannabis are three in the lead other companies will be relevant but smaller As far as their share structures concerned they've got Fully diluted shares outstanding of 250 million 250 million six hundred thousand and twenty fully diluted 255 million warrants plus options convertible the ventures and warrants attached are at 75 cents convertible the ventures and warrants are also at 85 cents So they're currently at much higher prices which gives everybody huge upside Now as far as the share price history They have not been public long and the charts don't look the greatest yet Their highest price so far has been 63 cents currently at 29 cents in Canada So this could be signaling a great buying opportunity the company structure is in two segments They've got a wholesale business and they have a retail business the retail is larger than the wholesale and it continues to grow The design and manufacture in the wholesale side and then put the accessories on sale in the retail stores Saskatchewan is the only province you can buy cannabis online no government intervention That's why can a cabana sells online in Saskatchewan Grass City is only online. They are the Amazon of smoking and cannabis wholesale feeds retail Accessories manufactured in a wholesale side and then sold in the retail side So as far as their share structure their three-year revenue forecast We don't really want to forecast that yet because it's difficult to forecast considering it's so new When profits are expected they're expected to be in the positive by late 2020 all open stores are generating revenue and The financial forecast will be coming out shortly Now when you look at the company and You can see that they've been seller celebrating 10 years of business in 2019 They've got some really unbelievable partners on the wholesale side with RGR Canada and Famous brands Canada's premier distributor and manufacturer of cannabis accessories 27,000 square feet facility in Calgary, Alberta 4,300 SK us with 75% of Catalog manufactured in-house to maximize margins an Exclusive global manufacturers and distributors of licensed smoking accessories in partnership with celebrity brands like Snoop Dog Cheech and Chong and guns and roses. That's huge Celebrity partnerships like Snoop Dogg Cheech and Chong and guns and roses. I mean those are some big names on the retail side They're a bricks-and-mortar business focused on relationships with Canada Cabana and Kush bar. They are positioned to become one of Canada's largest cannabis retail networks launched in 2018 17 currently branded locations and 20 under various stages of construction Retrofitting existing stores for top-tier speed to market Being deployed selectively to leverage existing real estate partnerships Establishing a recognized and successful brand of four retail locations in Alberta and more in Ontario in the near future Now on their retail side Grass City is already online and they are one of the largest chains of cannabis accessory stores in Canada with 14 locations Supplied directly by RGR eight franchises and six corporate stores Seven former locations have been converted to current Canada cabana stores Headquartered in Amsterdam grasscity.com is the world's premier online store for smoking accessories and cannabis lifestyle products With approximately 5.8 million site visits annually So this is a company that is just getting started guys They've been around for 10 years, but they've only been public for a short period of time That's why the stock hasn't done very well The legal recreational cannabis market is expected to generate sales of up to 4.34 billion in 2019 and High tide intends to be a major player that participates in all of that Okay So their total assets right now are actually forty seven point seven million and Their revenue at fifteen point nine million with a gross margin of five million in revenue They are manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products Developing the largest cannabis retail network in Canada. So that's some big statement Their vision is to grow organically and through acquisition to become a valuable retail focused Vertically integrated enterprise with global operations. I absolutely love their vision Now let's talk about some of the company's goals The short-term goals are to continue construction and opening more retail cannabis stores Convert LOIs into fully executed projects so taking letters of intent that they've put together with partners and Actually developing those LOIs into real business that can generate revenue, which is very exciting Establish a retail presence in all applicable Canadian provinces hire talented people to help lead operate and grow the organization and Foster positive relationships with governments at all levels and local communities Build great brands through responsible customer relationships Play a key role in shaping a world-leading Canadian cannabis industry and Deliver shareholders and industry-leading ROI and earn premium multiples as a public company through strategic Stewardship discipline capital allocation and strong governance. I love those goals. I think that these goals are very realistic and They are definitely on the right track And this is why I wanted to bring this company to you guys today is to really show you that this is a company that may be very undervalued Underappreciated and underexposed and that's what we do here rich to be live We try to bring you stocks at the bottom before they explode like I said to you This has been as high as 63 cents. It's currently at 29 cents in Canada. The lowest It's been is 27 and a half cents So the way my brain thinks is you want to buy low and sell high and right now high tide is very close to the bottom now They've got differentiated Leadership high quality retail focused. They're really focused on the retail side Corporate and franchise and I haven't seen too many companies focused on doing franchises So this is pretty interesting and I think it separates high tide from a lot of other LPs in the sector because I haven't seen too many LPs that want to focus on franchising high tide might be one of the first they've got loyal customers via a strong brand and Responsible brands. I apologize many brands that they work with Responsible retail and excellent service margin capture through vertical integration and optimized operations Manufacturing and distribution they want to continue doing R&D research and development Which is vital to the growth of the company consumer trends and product manufacturing really focused on what is the trend? You know is CBD hot is Hemp hot is flower hot whatever is hot High tide wants to be focused on that trend, which I think is brilliant They want to focus on building customer education, which I think is going to be a growing industry moving forward in this sector Peer monitoring monitoring all of their peers trying to determine. What is right? What is working? What is not working? They want to focus on industry evolution and government regulations Which is vital, especially with what we're hearing right now with cantrust who literally is reporting today to health Canada With the fact that they have had some issues with non-compliance So it's vital that they have right in their business goals that they want to be compliant with health Canada Because the companies that are compliant with health Canada are going to build more credibility with investors Thus, we will see more upside with prices Accreditive growth they want to really have organic initiatives and internal projects Asset acquisitions they are focused on looking for assets They can acquire which will allow them to acquire their growth as opposed to growing organically which can take a really long time So I like that and corporate transactions. They are looking to acquire their growth doing corporate transactions Which I think is brilliant So we've talked a little bit about their bricks and mortars and their retail business their wholesale business Which is very impressive Canada cabana, which is one of their brands is positioned to become Canada's largest retail cannabis network They have absolutely beautiful stores This actually looks a lot like Medmen Medmen has some beautiful stores in America and the Canada cabana stores look very similar very colorful very sleek beautiful professional looking stores, which almost looks like a Like a retail shopping mall type location You wouldn't know the difference between going to a shopping location a high-end a High-end designer store where you're buying clothing or walking into this cannabis location So it's kind of interesting that they've got a really beautiful Looking store that they're trying to really that they're trying to really put out there Canada cabana is Canada's one-stop shop for cannabis They really focus on premier customer service centralized logistics management Built on data from existing customer base Industry leading employee training program enables a complete customer experience. So they're really focused on Giving the customers an experience that they're going to remember an experience that they're going to want to come back for And I think that that's vital for repeat business They're also focused on accessories for recreational adult use Connected to over 25,000 Canadians through social media and now open in private jurisdictions targeting location size of 1500 to 2500 square feet So they're looking to have little locations 1500 to 2500 low square feet, which will be beautiful branded well-trained locations with employees that understand the product and Are going to be able to make the experience for the customers and experience that is memorable So they keep coming back for more, which I think is brilliant So can a cabana currently in Alberta has 12 corporate stores one franchise in Ontario Three branded stores. So 12 corporate stores in Alberta and one franchise in Ontario Three branded stores in Saskatchewan. They have one corporate store and one e-commerce site In Manitoba, they have one corporate store and an e-commerce site under development so these guys are literally going all over Western Canada and Ontario So grass city is another one of their brands. It's the world's top accessory e retailer With a 20-year history as online store 5.8 million site visits per year 600,000 customers in their database and 65,000 orders per year They also have a large u.s. Customer base with 90% of orders 90% of their orders in the United States their order fulfillment in Europe and North America is also happening in 2019 and a large opportunity to add new customers and products They also have a big focus on social media and forums with 34 million unique users in grass city forums since inception Wow, that's impressive 640,000 current forum members 75 million page views per year. Wow, that's huge and 265,000 followers on Facebook Instagram and YouTube. So they have a very large presence on social media Now the other thing the high tide is doing is that they've got a strategic rationale for the acquisition They are really focused on acquisitions So one of the focus obviously is manufacturing design and production and brand licensing They've already done this with RGR Brands in Canada and famous brands The next focus is distribution Optimized logistics ship from North America to local customers and they have multiple warehouses as far as grass city They are focused on the retail side. They are established online in SEO search engine optimization and social media Now as far as their manufacturing Their sale of similar products to similar customers their distribution has a margin expansion through vertical integration And the retail has access to Europe for high tides wholesale Segment and we love Europe because the price of the euro is so high that the margins for these companies That are doing business in Europe are exponential So I love the fact that these guys have a global focus and yet they're still trading at only 21 cents in America and 29 cents in Canada now another one of their brands is smokers corner Smokers corner is a smoking accessories and cannabis lifestyle products company focused on doing business in 14 current locations They have eight franchises six corporate stores seven previous locations being converted to canna cabana stores They have a turnkey model a CFA approved franchise program enables rapid deployment in key markets And they also have existing revenue average location generates 380,000 a year and the top location generates an impressive 850,000 a year Today smokers corner is one of Canada's largest counterculture chains with 13 existing locations one new location opening in In the first quarter of 2019 scalable franchise model that has the ability to grow exponentially Now smokers corner has been in business for 10 years of retail expertise So they've been doing this for a long time and they've developed a model that works, okay? So they have existing relationships over a hundred and seventy thousand annual retail customer interactions 12 municipalities across Alberta British Columbia and Nova Scotia Landlords and commercial real estate brokers their operating costs are focused on staffing levels and wages Retail leases and insurances Verde vertically integrated infrastructure enables cost management So these are guys that know exactly what they're doing They've been doing it for 10 years and they have every area of the business figured out from staffing to Vertical integration to insurance and that is the key to running a successful business You got to have every single eye dotted and every single t-crossed their inventory management is vital and very very well managed Initial orders and new store requirements lead times for ongoing replenishment Optimization of SKUs and innovation and high quality merchandise franchises they have franchises Master franchise agreement and other key agreements back office administration and training and support So they provide training and support for their franchises back office administration and they have an agreement in place as the key element with their franchisees as a master franchise agreement and other key agreements between Every single franchise which is vital so that everybody knows exactly the lay of the land Now another one of their brands is called kush bar Which is their next retail cannabis concept? It's modern. It's open and it's relaxed and it's absolutely stunning The the views of what kush bar looks like. I mean this looks like a beautiful Beautiful retail store. You would never know it's cannabis company. There's four locations currently under construction High tide is definitely on the verge of something special here now another one of their brands is called famous cannabis cafe They do vape Edibles accessories and munchies and because edibles is getting legalized October 17 2019 here in Canada and we'll be able to start selling in December This could be the right time to position yourself in high tide which has a focus on Edibles Now their wholesale segment is focused with RGR Canada and famous brands two of the brands which we've talked about Now RGR Canada nationally has a distribution network which extends from their 27,000 square foot facility in Calgary, Alberta They have exclusive Manufacturing contracts with industry leading factories in China the United States and the European Union Once again, they've been in business for ten years experiencing the design and branding of cannabis accessories that sell and They have 4,300 SKUs extensive product catalog with 75% manufactured in-house RGR Canada has a selection of proprietary brands beautiful glass Called atomic. They've got more glassbongs called dopezilla They've got some beautiful glass called evolution I love this line called puff puff pass. That's probably very popular just because of the name They've got another line of glass called vodka and another line of glass called zoom zoom And this is a beautiful looking glass packaging Bongs that they have that they're offering now some of the most famous licenses and brands and Partners that they're working with are just huge names Like Snoop Dogg which is working with pounds smoking accessories Cheech and Chong Which is working with obviously their brand is called up-and-smoke Which is working with Sublime the Triller Park boys, which obviously is very famous and Even Hellboy and Guns and Roses so some really big big famous names that are Affiliated with high tide and some of their brands Famous products brands from the famous brands include Snoop Dogg Pounds Triller Park boys, Cheech and Chong up-and-smoke, Jay and Silent Bob just name a few and they literally have glass products with the faces of Some of these brands on their glass products So imagine you got a bong and you've got Ricky on your bong. I mean this is pretty cool You got Julian on your bong you got all these different famous Celebrity actors that you can actually have on your bong. So that's pretty cool now another Partnership that they have and brand is called famous brands CNG sales famous X a lifestyle accessory line for convenience Gas station and specialty retailers featuring license and proprietary smoking products Triller Park boys and Cheech and Chong's up-and-smoke and They've got some amazing amazing products that you guys can look at that are just so impressive and so So sleek looking Now their management team The founder president and chief executive officer is Raj Grover, which I referred to Raj earlier Just to read a little bit about the founder Mr. Grover is the founder of high tide and its subsidiary companies of RGR Canada smokers corner and Canna Cabana while also being the co-founder of high tide newest subsidiary famous brands Raj started smokers 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 franchise or an 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. Well, I love the fact that he's got to focus on charities. That's just great So you can take a look at the management team Raheem Kenji is the chief financial officer Nick Kuzik is the chief strategy officer and Alex McKay is the chief operating officer and Andy Palalas is the chief revenue officer. You can take a look at their board of directors Their team of advisors So they have a very strong team that they've been building out for quite some time Now their strategic partners as Far as their retail buildouts are Holland design Formula for projects and Leading edge developments ink their technology partners are Kova elevate your dispensary experience Sage x3 Baker and as far as security ADT in Finance they are Strategically partnered with ATV financial Can accord genuity which everybody Usually typically especially start-up companies that are public typically get funding from can accord. So that's not a surprise first Republic capital Laurentian Bank securities. Well, that's a nice name to see on there and Mackie research as far as legal. They are receiving support. Oh, there's some big names here from garfinkel beard garfinkel beaterman Hui and company Notable investors are wow some big investors aurora cannabis Aphria and FSD pharma once again notable investors are aurora cannabis one of the biggest in the world Aphria another one of the biggest global players in the world and FSD pharma smaller company That has a lot of potential They also have government relationships with Sutherland Corporation limited their auditor is MNP LLP and They are growing by acquisition So they've got a real big focus on growing through acquisition, which I love They have a goal of growing the retail and distribution business by acquisition domestically as well as in the US European Union and elsewhere as appropriate through various segments Thousands of existing customer relationships over 300 vendors in a current database They have industry partnerships also yield transaction opportunities Currently assessing several accredited acquisitions in the manufacturing wholesale and retail sectors across Canada, so stay tuned to the news. There's a lot of new big news coming for high tide Now just to just go over some of the recent news that they've had Let's break it down since the beginning I'll just gonna go through some of the recent news July 3rd 2019 High tide announces canna cabana now selling cannabis in Grand Prairie with 10 more Alberta stores to follow shortly on June 29 2019 high tide reports results for second quarter 2019 featuring a 125% increase in revenue over the same period last year. So this is a company that is growing aggressively Exponentially, okay. I'm not gonna go through all the news, but just some of the recent news June 26 2019 high tide upgrades grass city to Magento to e-commerce platform and on May 24 2019 High tide acquires retail cannabis store and e-commerce business to enter the Saskatchewan market So you can see there's a huge flow of news that just keeps coming with high tide And I think with some of these partnerships that they have the team to have in place And the fact that they're a vertically integrated business I just believe the high tide has a great future. I really do I really do so their shares outstanding once again issue an outstanding our 206 million 846,892 as of July 15 2019 So this is pretty updated and the potential shares from stock options are 11,235,000 The potential shares from exercise of warrants are 43,317,327 and their potential shares from conversion of debentures are 30,520,000 Giving them a fully diluted common shares outstanding of 291,919,219 total shares totally diluted Now they have an exercise price of 50 cents per share A weighted average exercise price of 69 cents per share A conversion price of 75 cents per share This is breaking down their options and their warrants And a pro forma cash proceeds of 35 million if options and warrants are fully exercised So the good news here is If they get all of their options and warrants fully exercised They are going to get an additional infusion of 35 million dollars that will go into the company's treasury So that's all very good news So as far as an investor, why would you want to invest? Well, these are the key reasons They have a compelling investment opportunity in the downstream cannabis as a downstream cannabis leader They are experienced, a loyal built in audience across Canada and nearly a decade of retail experience They are flexible They have a franchise infrastructure backed by financing for the fastest deployment in the country They are stocked up They are a manufacturer, distributor and retailers perspective on the hottest cannabis products And accessories So they got their thumb on the pulse which Leads me to believe and I'm sure it should lead you to believe that they have huge Upside potential considering they're trading at 29 cents with all these huge partnerships I think the sky's the limit for a company like high tide They are healthy They have a strong balance sheet and a history of growth through retained earnings And they have a lot of locations ahead of the industry on leasing municipal outreach and quality of locations and I'm sure you will see with some of the different things that we're going to show you Behind me here that they've got beautiful locations So that is high tide. I think this is a company that has huge potential I believe them to be underappreciated, undervalued and underexposed and I believe they have Incredible potential. They are currently Right now trading at just under 22 cents in America HITIF is the symbol in America And they are currently trading right now 117,000 shares in volume So there's been a little bit of a volume spike since we've been talking about them, which is nice to see And in Canada, we can see here that let's see if it's changed at all since we've been doing this video Yeah, so they've actually just come down creating another buying opportunity. So they are currently trading at 27 and a half cents have traded 146,000 shares in volume today. So they are literally trading at the bottom right now The lowest they've ever been is 27 cents. They're currently at 27 and a half So if you're looking for a buying opportunity, you're literally looking at high tide right now at a bottom So we've seen them as high as 63 cents We've seen them as low as 27 currently at 27 and a half We love to find bottoms here at risk to be live and I believe that high tide might be at a bottom I'd love to know what you guys think if you guys like this video Smash the like button comment down below share this video everywhere This is rich from rich to be live bring you high tide HITI in Canada HITIF in America. Thank you for watching I would love to know what your opinion is on high tide Do you like it? Is there something that you want to know about high tide? Do you have any questions for me put your comments in the description down below If you own it, please let me know if you like it, please let me know If there's something you don't like about it, please let me know I would love to do more due diligence and I love getting your involvement and your feedback So please let me know what you guys think about high tide a company that's been around for 10 years But is strictly just getting public right now And is essentially trading at the bottom and I think it has a huge upside This is rich from rich to be live bring you high tide. Thank you very much. Have yourself a nice day