High Tide (HITI) Recaps Key Milestones of 2023

High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, is pleased to reflect on its key milestones for 2023, a year that saw the Company once again achieve record growth while surpassing its communicated goals. From becoming one of the few publicly traded cannabis companies anywhere in the world to generate positive free cash flow five months ahead of its publicly communicated timeline, to closing the year as the top revenue-generating cannabis company in Canada for the second consecutive year¹, to launching Cabanalytics Consumer Insights (CCI), a consumer-facing magazine style digital publication which is an extension of the highly successful Cabanalytics business data and insights platform, the Company continuously demonstrated a commitment to innovation and responsible growth while maximizing shareholder value.

The Company also announced the paydown of $2.8 million from its convertible debenture balance using cash on hand. This, along with the restructuring announced on November 1, 2023, has resulted in the balance of this debenture being reduced from $8.9 million then to just over $1 million today. With one year to go until the formal maturity date of this debenture, the Company's total gross debt now sits at $29 million, representing 1.1 times the Adjusted EBITDA reported by the Company over the past four quarters.

High Tide's 2023 Highlights:

• Realized a current annualized revenue run rate of over $500 million dollars and remains the top revenue-generating¹ cannabis company in Canada
• Achieved positive free cash flow five months ahead of the publicly communicated timeline
• Generated record Adjusted EBITDA over the nine months ending July 31, 2023
• Paid down a further $2.8 million on its convertible debenture using cash on hand, thus bringing its balance to just over $1 million currently versus $8.9 million at the start of 2023
• Achieved industry-leading same-store sales growth of 31% during the first three quarters of fiscal 2023
• Improved cash on hand to $25.7 million as of July 31, 2023, versus $18.3 million as of July 31, 2022
• Reduced gross debt to $29 million currently, versus $38.7 million at the end of calendar 2022, while meaningfully growing the business
• Obtained coverage from three new equity research analysts, bringing the number of brokerages with coverage up to seven
• Added 13 new Canadian stores, both organically and through accretive acquisitions, closing the year at 162 stores across British Columbia, Alberta, Saskatchewan, Manitoba and Ontario
• Delivered rapid growth in its unique loyalty program, which remains the largest bricks-and-mortar cannabis loyalty program in Canada, with over 1.2 million ELITE and Cabana Club members
• Launched CCI to over 1.2 million ELITE and Cabana Club members
• Ranked 38th out of 425 in the Globe and Mail's annual ranking of Canada's "Top Growing Companies" with 1,040% revenue growth over three years. This marks the third year in a row the Company has earned a spot on this prestigious list
• Claimed the top spot in the Financial Times list of fastest-growing retailers in the Americas for 2023
• Grew its World Vision sponsorship support to 324 children internationally after committing to sponsoring two additional children for every new store that opens in Canada

"Once again, I would like to thank our loyal customers, team members and shareholders for their ongoing support as we delivered yet another groundbreaking year for High Tide and continuously outperformed our peers, some of whom did not survive 2023. With their support, we were able to execute our business plan, which saw us emerge as one of the few publicly traded cannabis companies in the world to generate positive free cash flow. Our rapid revenue growth and Adjusted EBITDA continue to expand as we leverage the strengths of our diversified cannabis ecosystem and experience strong growth in our Cabana Club loyalty program, which now sits at over 1.2 million members. On top of these achievements, we have also been able to reduce the balance of our convertible debenture by approximately 90% one year prior to its formal maturity date. I am optimistic that this success will be recognized by the capital markets as their sentiment towards the cannabis industry inevitably shifts," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"I also want to once again reiterate that it is my goal to see High Tide become a top-five MSO with significant retail operations beyond North America. We continue to see positive momentum in the United States, where rescheduling seems increasingly possible in 2024. Despite delays in Germany's cannabis legalization plans, we remain optimistic that the sale of recreational cannabis to adults through specialty shops could begin by early 2025, providing an opportunity for us to take our Canna Cabana brand to Europe. While we are excited about potential international expansion, our core focus for 2024 will remain on growing our bricks-and-mortar footprint in Canada, particularly given the Government of Ontario's recent announcement that it intends to double the provincial cannabis store cap. This move will make it easier for Ontario cannabis retailers to compete with the illicit market while materially growing revenue," added Mr. Grover.

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