High Tide (HITI) Investor update summary

Recent acquisition and international expansion

• Completed acquisition of Remexian, a leading private cannabis importer in Germany, after a complex due diligence process involving untangling intercompany relationships.

• Remexian holds an estimated 16% market share in Germany by tonnage, positioning the business as a major player in the country's import-driven cannabis market.

• Plans to leverage Canadian procurement relationships to increase Remexian's Canadian imports from 33% to potentially 50-60%.

• Strategy includes promoting Canadian brands in Germany, building the largest menu of Canadian products, and maintaining strong partnerships with Canadian LPs.

Business model and growth strategy

• Operates 203 retail stores in Canada under the Canna Cabana brand, aiming to surpass 300 stores and approach CAD 1 billion in revenue.

• Focuses on a discount club retail model, emphasizing variety and low prices, with a commitment to not overloading shelves with in-house brands.

• Queen of Bud brand, acquired for CAD 1 million, is expected to exceed CAD 5 million in sales this year, outperforming initial expectations.

• Open to further brand acquisitions, but will remain selective and prioritize differentiation and partnership with LPs.

U.S. market and future expansion

• Plans for U.S. entry are ready, with a focus on quality locations and M&A-driven expansion, but will proceed cautiously and selectively.

• Aims to become a top-five multi-state operator in the U.S. if regulatory changes allow, prioritizing sustainable growth over rapid expansion.

• Will focus on retail rather than medical in the U.S., unless regulatory changes create new opportunities.