High Tide (NASDAQ:HITI) Chief Executive Officer Raj Grover outlined the cannabis retailer’s expansion plans in Canada and Germany, pointing to continued store growth, loyalty-program expansion and potential international opportunities during an interview with ATB Cormark analyst Frederico Gomes.
Grover said High Tide operates two principal growth businesses: its Canna Cabana cannabis retail chain in Canada and Germany-based Remexian Pharma GmbH, an importer and distributor of medical cannabis products. Canna Cabana has 234 locations across five Canadian provinces, supported by a Cabana Club loyalty program with 2.73 million members, he said.
Canadian Retail Growth and Market Share
Grover said Canna Cabana’s strategy centers on value, convenience and customer knowledge developed through the company’s operating history in the cannabis sector. The retailer offers a lowest-price guarantee to club members and emphasizes accessible store locations, he said.
High Tide holds about 14% market share in the provinces where it operates, excluding British Columbia, where it has been limited to eight stores. The company is targeting an 18% to 20% share in its core provinces, with much of the prospective growth expected to come from Ontario.
Ontario has a 150-store cap, while High Tide currently has 107 stores operating in the province, leaving room for 43 additional locations, according to Grover. He said the company expects to use a combination of organic openings and selective acquisitions, while remaining disciplined on transaction valuations.
“This is a buyer’s market,” Grover said, noting that High Tide recently completed a one-store acquisition at an EBITDA multiple of 2.1 times. At its current pace, he said, reaching the company’s targeted market-share range could take roughly three years, though a larger acquisition could accelerate that timeline.
The company has historically opened 20 to 30 stores annually, Grover said, although growth this year is expected toward the lower end of that range. He cited recent purchases including Northern Helm’s four stores and another location in Chestermere.
Store Economics and Loyalty Program
Grover said a typical Canna Cabana location requires approximately CAD 260,000 in hard capital expenditures and roughly CAD 100,000 in working capital, largely inventory. High Tide generally estimates total investment at about CAD 400,000 per store, with historic payback periods of 10 to 12 months.
High Tide’s paid ELITE membership tier had 186,000 members, up 62% year over year, while total Cabana Club membership rose 27% year over year to 2.73 million, according to Grover. ELITE costs CAD 35 annually, which Grover said would equate to roughly CAD 7 million in annual membership revenue at approximately 200,000 members.
He said paid members tend to be more frequent shoppers with larger baskets, comparing the model’s customer-retention dynamics with membership programs such as Amazon Prime and Costco.
High Tide also uses customer purchasing data to support its white-label offerings and sells aggregated data to licensed producers. Grover said more than 45 licensed producers subscribe to the company’s data program.
White-label sales represented 1.9% of sales in the last reported quarter, he said. Grover highlighted the Queen of Bud brand, acquired for CAD 1 million about two years ago, which he said generated close to CAD 10 million in sales over the trailing 12 months.
Germany Expansion and European Opportunities
In Germany, Grover said Remexian posted quarterly sales volume of 10.2 tons, compared with a prior quarterly record of 7.6 tons. Quarterly revenue increased to approximately CAD 38 million in the third quarter from about CAD 32 million in the second quarter, he said.
Following High Tide’s acquisition of Remexian, Grover said the company increased the proportion of Canadian cannabis imports in the business from about 33% to nearly 80%. He also said Remexian’s market share increased from 6.5% immediately after the transaction closed on Sept. 2, 2025, to 10.5% as of the first quarter.
High Tide is targeting at least 15% market share in Germany over two to three years, provided business momentum and broader market growth continue, Grover said. He added that Germany’s medical cannabis market is currently growing at roughly 25% to 30% annually.
Remexian reported approximately 12% adjusted EBITDA margins in the latest quarter, according to Grover. While quarterly results can be affected by import and export permitting timelines, he said he believes the business could deliver adjusted EBITDA margins of 12% to 15% over the long term.
Beyond Germany, Grover said the United Kingdom is High Tide’s most immediate international market of interest, followed by Poland, France and Spain. The company intends to pursue markets sequentially rather than expand broadly at once, he said.
British Columbia and U.S. Optionality
Grover said High Tide has been encouraged by discussions around possible cannabis reform in British Columbia following the Conservative Party’s election victory. He said the company has heard that the provincial government may be motivated to raise the eight-store limit to at least 24 stores, though he cautioned that timing remains uncertain.
In the United States, Grover said High Tide is awaiting federal cannabis rescheduling and clarity from senior exchanges on whether listed companies can participate in plant-touching cannabis operations. He described the U.S. as a major potential catalyst but said High Tide continues to have significant growth opportunities in Canada, Germany and other international markets.
The company’s U.S. CBD and accessories operations account for less than 2% of consolidated revenue, Grover said. High Tide is monitoring a U.S. pilot involving potential coverage of hemp-derived CBD products for eligible seniors, while considering a divestiture of its accessories portfolio. He said the company wants to preserve the portfolio’s potential to sell THC products if federal regulatory changes create that opportunity.
About High Tide (NASDAQ:HITI)
High Tide Inc is a Canadian cannabis company focused primarily on the retail sale of adult-use cannabis and cannabis-related products. The company operates its retail business under the Canna Cabana banner and offers cannabis flower, pre-rolls, vapes, edibles, beverages, concentrates and accessories, subject to applicable regulations.
High Tide also operates the Cabana Club customer loyalty program and Fastendr, a technology platform designed to support cannabis retail, online ordering and in-store purchasing.
