High Tide, a Canadian cannabis enterprise, applauds the recent amendment of Ontario Regulation 468/18 under the Cannabis Licence Act, 2018.
This move increases the maximum number of stores that licensed retail cannabis operators and their affiliates can operate from 75 to 150.
High Tide is a community-grown cannabis business with diversified and integrated operations across various cannabis components.
Its notable segments include Canna Cabana, the largest non-franchised cannabis retail chain in Canada, and innovative retail technology through Fastendr. The company also operates leading accessory sites globally.
Positive industry impact
High Tide CEO, Raj Grover, expressed support for Ontario's decision, emphasising its positive impact on the country's cannabis retail market.
The increase aims to accommodate operators, particularly those with a franchise model, who have approached or exceeded the previous store cap of 75.
Grover noted that the amendment brings Ontario closer to Alberta, Saskatchewan, and Manitoba's legislation, which have demonstrated success in capturing the illicit market and do not impose a store cap.
Levelling the playing field and growth opportunities
The CEO believes that the change levels the retail playing field in Ontario, creating significant growth opportunities not only for High Tide but also for others in the legal cannabis industry.
Grover stated that this adjustment enables the legal market to better compete with the entrenched illicit market, fostering job creation and increasing tax revenue for the province.
High Tide's growth trajectory
High Tide anticipates meaningful benefits from the store cap increase. Grover highlighted that the additional 100 locations will boost revenues and propel the company's growth trajectory.
As of July 2023, the 50 Canna Cabana stores open in Ontario demonstrated an impressive average annual run rate, positioning High Tide as the largest non-franchised cannabis retailer in Canada.
With the change, the company's long-term growth target has now shifted to 300 bricks-and-mortar stores across Canada.
