The first psychedelics ETF commences trading, courtesy of Horizons. More visibility for the sector. Increased demand for these stocks.
It may be hard to believe for some investors, but in terms of public companies the psychedelic drug sector is barely a year old. As this sector emerges, Horizons ETFs has marked a milestone for the industry: the first psychedelic stock ETF (PSYK).
PSYK commences trading on January 27, 2020 on Canada’s Neo Exchange. The stated objective of the fund is to replicate “a market index that is designed to provide exposure to the performance of a basket of North American publicly-listed life sciences companies having significant business activities in, or significant exposure to, the psychedelics industry.”
Specifically, the benchmark for PSYK is the North American Psychedelics Index. The composition of this index can be found below. The performance of the Index can be seen here.
Given this composition, an (unofficial) list of the fund weightings found online seems to correspond to the Index.
The fund will provide primary exposure to the companies who are part of the composite Index. But it will provide indirect exposure to the entire sector.
Intrepid investors in psychedelic stocks looking for some undiscovered (undervalued) gem will likely look for prospects outside of this Index.
As with all ETFs, PSYK will be a good vehicle for investors who are new to this emerging sector, or simply novice investors looking for some exposure to psychedelics.
As Psychedelic Stock Watch recently observed, we are close to “low tide” in the psychedelic stocks at present. So this is a good time for PSYK to make its debut – as it gives investors an entry point to the sector with valuations at attractive levels.
Why should new investors want exposure to this sector?
It starts with the Mental Health Crisis. A global epidemic of stress-related conditions like depression, anxiety, addiction and PTSD, afflicting over 1 billion people worldwide.
The current standard of care for these mental health conditions is woefully inadequate (hence the “Crisis”). Psychedelic drugs are seen as a clear choice to not merely improve the standard or care for these conditions but to revolutionize treatment.
These are multi-billion-dollar treatment markets that are totally up for grabs. But that’s just the tip of the iceberg.
With the Renaissance in medical research on psychedelic drugs, psychedelics R&D is already branching into numerous other areas of mental and conventional healthcare.
Though the sector is barely a year old, it’s already attracting a ton of investment capital. Over $500 million has flooded into the sector via financings in roughly just the last four months.
Along with the huge flows of capital have come a long list of high-profile investors piling into the space. This includes billionaires like PayPal’s Peter Thiel and GoDaddy’s Bob Parsons.
Want one more reason to bet on the psychedelic drug sector? The U.S. military.
The Department of Defense is one of the world’s largest donors funding psychedelic drug R&D. The U.S. military has its ownMental Health Crisis that is arguably even more severe than the general global epidemic.
But the Department of Defense can’t access the treatment benefits of psychedelic medicine while these drugs remain illegal.
The legal cannabis industry has had great difficulty trying to overcome the biases of the U.S. political Establishment. The psychedelic drug industry has the proverbial “friends in high places” necessary to make such political roadblocks evaporate.
A new sector for investors. A new ETF to facilitate entry into this sector. Opportunity knocks.
DISCLOSURE: The writer holds shares in MindMed Inc, Numinus Wellness, Cybin Inc. and Mind Cure Health. Mind Cure Health is a client of Psychedelic Stock Watch.
The legalization of cannabis derivative products in late 2019 by Health Canada is proving to be a major value drive for companies that are levered to the burgeoning vertical and is a trend that we are bullish on.
Many brokerage firms and research analysts refer to this era of the industry as cannabis 2.0 and we consider this vertical to be one of the most exciting aspects of the Canadian cannabis industry.
One of the biggest surprise winners of the Canadian cannabis 2.0 market has been Auxly Cannabis Group Inc. (TSX.V – XLY) (CBWTF), a leading consumer packaged goods (CPG) company in the cannabis products market.
Last week, Auxly reported a major milestone and announced that it had the largest market share of cannabis 2.0 products in 2020. The data was confirmed by Headset Canadian Insights data which is considered to be a leading data aggregator for the legal cannabis industry. We consider this to be a major achievement for Auxly and is a development that captured our attention.
According to Headset Canadian Insights, Auxly had a 19.2% share of the total vape market and a 12% share of the total edibles market. These two market segments were significant enough for Auxly to capture the largest amount of market share and we expect the company to launch new cannabis 2.0 products this year.
The performance of Auxly’s vape products in 2020 was impressive and was the best performing segment of the business. According to Headset Canadian Insights, Auxly had 23% of the national vape market share in the fourth quarter and we will monitor how the trend continues in future quarters.
With these results, Auxly has proven its ability to execute on the cannabis 2.0 market as well as its dedication to selling premium differentiated and innovative cannabis products. Going forward, we expect the cannabis 2.0 market to serve as a major revenue generator for the entire business and will be closely monitoring this aspect of the operation.
One of the developments that helped Auxly achieve this milestone is related to the completion of the second-floor expansion at its Dosecann facility. The completion of the expansion made it so the company could significantly increase production, fulfillment rates, and the sale of cannabis products.
In 2020, Auxly introduced several new cannabis products to the market with the launch of the Back Forty brand, Foray Hard Maple Caramels, Dosecann Capsules, Kolab Project Cherry Cola Pop milk chocolates and Kolab Project 232 Series live terpene vape cartridges. Going forward, we expect the company to bring additional 2.0 products to market and will monitor how the product line continues to gain traction.
We believe that Auxly is an opportunity that has been flying under the radar. We attributed the muted response to how the company used to operate but believe that the business could be turning a quarter. If Auxly is able to build off this momentum, we expect to see more interest in the opportunity and we will continue to closey follow the story.
If you are interested in learning more about Auxly Cannabis Group, please send an email to email@example.com with the subject “Auxly Cannabis Group” to be added to our distribution list.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
Aurora Cannabis Inc. (“Aurora” or the “Company”) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and ATB Capital Markets, under which the underwriters have agreed to buy on bought deal basis 12,000,000 units of the Company (the “Units”), at a price of US$10.45 per Unit for gross proceeds of approximately US$125 million (the “Offering”). Each Unit will be comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of 36 months following the closing date of the Offering at an exercise price of US$12.60 per Warrant Share, subject to adjustment in certain events.
The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 10% of the Offering to cover over-allotments, if any. This option may be exercised by the Underwriters for additional Units, Common Shares, Warrants or any combination of such securities.
The net proceeds of the offering will be used for general corporate purposes, which may include opportunistically reducing debt. The Company believes that the Offering fits with its broader strategy to have a strong balance sheet while maintaining maximum flexibility to invest and build towards being a leader in global cannabinoids.
The closing of the Offering is expected to take place on or about January 26, 2021 and will be subject to customary conditions, including approvals of the Toronto Stock Exchange and the New York Stock Exchange.
A prospectus supplement (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus dated October 28, 2020 (the “Base Shelf Prospectus”) will be filed with the securities commissions or securities regulatory authorities in each of the provinces of Canada, except Quebec, and with the U.S. Securities and Exchange Commission (the “SEC”) as part of the Company’s registration statement on Form F-10 (the “Registration Statement”) under the U.S./Canada Multijurisdictional Disclosure System. The Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement contain important detailed information about the Company and the proposed Offering. Prospective investors should read the Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement and the other documents the Company has filed for more complete information about the Company and this Offering before making an investment decision.
Copies of the Prospectus Supplement, following filing thereof, and the Base Shelf Prospectus will be available on SEDAR at www.sedar.com and copies of the Prospectus Supplement and the Registration Statement will be available on EDGAR at www.sec.gov . Copies of the Prospectus Supplement, following filing thereof, the Base Shelf Prospectus and the Registration Statement may also be obtained from BMO Capital Markets by contacting BMO Capital Markets, Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 or by telephone at (905) 791-3151 Ext 431 or by email at firstname.lastname@example.org or from BMO Capital Markets Corp., Attn: Equity Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036 (Attn: Equity Syndicate), or by telephone at (800) 414-3627 or by email email@example.com . Copies of such documents may also be obtained from ATB Capital Markets Inc., Attn: Gail O’Connor, 410-585 8th Ave SW, Calgary, Alberta, T2P 1G1, (403) 539-8629 or by email from firstname.lastname@example.org .
No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Aurora is a global leader in the cannabis industry serving both the medical and consumer markets. Headquartered in Edmonton, Alberta, Aurora is a pioneer in global cannabis dedicated to helping people improve their lives. The Company’s brand portfolio includes Aurora, Aurora Drift, San Rafael ‘71, Daily Special, AltaVie, MedReleaf, CanniMed, Whistler, and Reliva CBD. Providing customers with innovative, high-quality cannabis products, Aurora’s brands continue to break through as industry leaders in the medical, performance, wellness and recreational markets wherever they are launched. For more information, please visit our website at www.auroramj.com .
Aurora’s common shares trade on the TSX and NYSE under the symbol “ACB”, and is a constituent of the S&P/TSX Composite Index.
VP, Communications & PR
Forward Looking Statements
This news release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements “). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements made in this news release include statements regarding: the timing and completion of the Offering and the expected use of proceeds of the Offering. These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward looking statements are based on the opinions, estimates and assumptions of management in light of management’s experience and perception of historical trends, current conditions and expected developments at the date the statements are made, such as current and future market conditions, the ability to maintain SG&A costs in line with current expectations, the ability to achieve high margin revenues in the Canadian consumer market, the current and future regulatory environment and future approvals and permits. Forward-looking statements are subject to a variety of risks, uncertainties and other factors that management believes to be relevant and reasonable in the circumstances could cause actual events, results, level of activity, performance, prospects, opportunities or achievements to differ materially from those projected in the forward-looking statements, including the risks associated with: entering the U.S. market, the ability to realize the anticipated benefits associated with the acquisition of Reliva, achievement of Aurora’s business transformation plan, general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition, the effects of and responses to the COVID-19 pandemic and other risks, uncertainties and factors set out under the heading “Risk Factors” in the Company’s annual information form dated September 24, 2020 (the “ AIF ”) and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at www.sedar.com and filed with and available on the SEC’s website at www.edgar.gov. The Company cautions that the list of risks, uncertainties and other factors described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
To have the biggest footprint, one must lace up the biggest shoe.
In the cannabis industry, multistate operator Curaleaf spent the past five years building itself a massive network with a 23-state foundation, and has no plans on slowing down as it continues to acquire licenses and increase capacity. Based out of Wakefield, Mass., the vertically integrated company’s operation includes 96 dispensaries, 23 cultivation sites and more than 30 processing sites.
With that groundwork established, Curaleaf is now gearing for its next wave of growth by putting focus toward executing on that platform, said new CEO Joe Bayern, who started his role Jan. 1.
“One of the things that’s tied to my transition into the new role is going and looking at what we’re calling Curaleaf 2.0, which is really the next growth spurt for Curaleaf,” he said.
Curaleaf executives put a lot of attention on trying to understand what they want the company to look like in the next three to five years, what the industry might look like during the next three to five years, and then what capability and capacity are needed, to help establish company goals, Bayern said.
Knowing where the cannabis industry is headed provides a strategic roadmap to follow, he said.
“Listen, we think it’s an incredibly compelling opportunity in the marketplace,” Bayern said. “We think [the U.S.] marketplace could be a $100-billion market at some point. So, we want to be the leading industry player in cannabis, and we think certainly by 2025 there’s no reason why we can’t get the industry to about a $50-billion market size. And we want to take a dominant share of that market size.”
While Curaleaf built momentum heading into 2021, implications for an accelerated pro-cannabis landscape sparked when the U.S. Senate runoffs in Georgia went democratic on Jan. 6, swinging the majority of the upper chamber.
Prepared to take advantage of the potential of those election results, Curaleaf executives pulled the trigger to raise more than U.S. $200 million through an overnight marketed offering on the Canadian Securities Exchange (CSE). Oversubscribed, Curaleaf ended up raising C$316,882,500 of capital, or about U.S. $251 million, before deducting the underwriters’ fees and estimated offering expenses.
“I think everybody was pleasantly surprised, at least from the cannabis industry, that both of those seats went democratic,” Bayern said. “As early as the week before, we were hearing it was going to be split, so I think we were obviously prepared to do something in case of a swing to a democratic Senate. Even before the Georgia race, we had filed a shelf prospectus back in November to be able to raise capital if the markets were moving in our favor, and they were.”
The underwriters exercised their over-allotment option in full, and, as a result, 18,975,000 subordinate voting shares of the company were issued, Curaleaf announced in a press release Jan. 12. Bayern said since Curaleaf oversubscribed – its original intent was to raise closer to $200 million – it allowed the company to get some institutional investors into its stock.
“I think people are now saying it’s time to jump in,” he said. “We think the Senate race was a catalyst for the industry, and it was just the first step of what we think is going to be a pretty exciting 2021 as far as positive legislation for the cannabis sector.”
In addition to the roughly $251 million raised on the CSE, Curaleaf announced Jan. 11 that it completed a new $50 million, three-year secured revolving credit facility. The loan is “expected to be used to fund capital expenditures to support future growth initiatives, potential acquisitions, and for general corporate purposes,” the company said in a press release.
An extension of a previous deal, Curaleaf lowered its cost of capital, from 13% on the original note to 10.25% on the new three-year secured revolving credit facility, Bayern said.
“It’s just another indicator that we think that the capital markets are loosening up a little bit for our space,” he said. “And then I think if there is change in the [Secure and Fair Enforcement (SAFE)] Banking Act … that there’s going to be a new round of capital coming into our industry. And I think that’s going to be important for us to be able to scale up and grow and continue to expand, if we are going to be able to supply the deeds of a $50-billion market over the next couple of years.”
In addition to potential advantages the cannabis industry might experience from the results of the Georgia Senate runoffs, there’s a lot of opportunity for non-legislative changes to help accelerate momentum in the marketplace, Bayern said. One of those changes could come in the form of a revised memorandum from the Department of Justice (DOJ), he said.
“I think guidance around the criminal aspects of cannabis and where [the DOJ] should be focusing their time [would help momentum in the marketplace],” Bayern said. “And I think guidance coming out of the U.S. Treasury would be helpful to provide some kind of confidence and security to U.S. investors and banking organizations to be able to, again, participate in the U.S. banking landscape.”
Banking roughly $300 million, through its overnight marketed offering on the CSE and through the three-year secured revolving credit facility, to kick off 2021, Curaleaf’s growth is capitalized for the remainder for the year, and most of 2022, so the company doesn’t have current plans to go out and raise additional capital, Bayern said.
Instead, Curaleaf wants to speed up some of its projects scheduled for the back half of 2021 and the beginning of 2022, in anticipation of accelerated market growth, he said.
“As you know, if you follow the industry, the constraining item for the last couple years has really been about building enough capacity to meet the demand of the marketplace,” Bayern said. “We think as we continue to see what we’re calling a ‘green wave of acceptance,’ of consumers accepting cannabis as more mainstream products, we’re going to continue to see increased demand. We want to be prepared to be able to meet that demand.”
In its current footprints, Curaleaf is considering extending its capacity through targeted bolt-on acquisitions in the marketplace, as well as investing in the next wave of growth, which Bayern said is predicated on innovation and developing standout products backed by science.
To do that, Curaleaf wants to put money toward research and development and clinical studies, in an effort to gain exposure to a broader segment of the U.S. marketplace with products that are suitable for those consumers whom the company hopes to bring into its category, Bayern said.
“Why we’re optimistic about that is, in many cases, those consumers are already consuming other products today,” he said. “So, the consumption is there. It’s just that we can provide a better alternative to what’s in the market today, whether it’s alcohol, or whether it’s prescription drugs for need-states like sleep or chronic pain, you know, cannabis really is a better alternative to those products.”
Behind a balanced portfolio across the U.S., Curaleaf is optimistic about growing, not only in its current footprint, but also as it moves toward building an omnichannel consumer product company, Bayern said.
Curaleaf has exposure to developed West Coast markets, like California and Oregon. It has exposure to up-and-coming markets, such as Arizona and New Jersey, which passed adult-use legalizations measures in the November election. And it has exposure throughout most the Northeast, where Curaleaf is headquartered.
“We think New York could be one of the most attractive markets, not only in the U.S., but in the whole world,” Bayern said. “If you look at the disposable income, you look at the density of population, you look at the per-capita consumption today, it could easily be a $4-[billion] or $5-billion market over the next couple of years.
“What’s important, though, is that New York learns from some of the predecessors about how to roll out an effective program, and they do it in a way that’s responsible and really manages across all of the constituents. Whether it’s existing patients and consumers, it’s being able to generate tax revenue for the state, it’s creating jobs in New York state, and it’s addressing the many issues of the social equity and balance that’s happening in cannabis and across other parts of society.”
Last week, we came across an article that was published by MJ Biz Daily that covered the performance of the cannabis sector in 2020.
One of the most interesting statistics from the report is related the amount of edibles that were sold in 2020 and this is a trend that our readers should be aware of. Companies that are levered to the vertical have worked to modify the business to capitalize on the increased demand for edibles and we will monitor how these operators are able to execute
The increase in demand for edible product have accelerated the pace at which edibles manufacturers are investing in research and development (R&D) as well as new product lines. We expect 2021 to be a banner year for the edible market as consumers started to show a preference for smokeless cannabis products in 2020.
The acceleration in R&D on cannabis edibles has forced leading manufacturers to work on the development of faster-acting and strain-specific edibles. We believe the amount of time it takes to feel the effects of edibles has improved and expect brands to benefit from the development of these types of products.
Data Highlights the Increasing Demand for Edibles
According to Seattle-based cannabis analytics firm Headset, demand for medical and recreational cannabis edibles increased by 60% across seven state markets to $1.23 billion from $767 million in 2019.
According to Headset data analyst Cooper Ashley, market share for edibles increased to 11.07% in 2020 from 10.65%. We find these data points to be significant and expect the vertical to report stronger growth in 2021.
Headset also provided interesting data on the Michigan cannabis market and this is an opportunity that we have been closely following. Last year, the state’s recreational cannabis market opened, and we are impressed with the performance of it. According to Headset, Michigan recorded a 14% increase in sales of edible products. The firm said that edibles’ market share in Michigan increased from 14.4% to 16.5% and this is trend to be aware of.
Some of the key data points that Headset provided on the Michigan market include:
Vape pens lost market share (from 24% to 20.1%)
Flower increased market share (from 41.1% to 46.4%)
Concentrates lost market share (from 9.6% to 7.7%)
During the last year, Michigan was one of the highly talked about cannabis markets and we expect the state to report strong growth this year. At the country level, we expect to see a similar trend play out as it relates to the mix of products that are being sold.
The US Cannabis Market is Accelerating Rapidly
Following the election of Joe Biden as President of the US and the democrats gaining control of the House of Representatives and the Senate, the cannabis industry is positioned to be a beneficiary of the changing of the guard.
Since the election, the cannabis sector has been in rally mode and we are seeing much smarter money enter the industry. Based on the outcome of the election, banks are starting to notice that the US cannabis market is the most attractive place to invest. While Canada is currently dominating in the international cannabis market, the US industry is expected to be the world’s largest cannabis market in the years to come.
We continue to prefer operators that are levered to states like Illinois or Michigan due to the limited number of licenses that are available. States like Florida, New York and Pennsylvania, are also limiting the number of cannabis licenses that are being granted and this plays a key role in our bullish outlook on these markets.
One of the reasons we are favorable on the cannabis edible market is related to the economics that are associated with it. To manufacture edibles, companies use cannabis extracts as the input product. Since these products are made with cannabis oil, the quality of the flower that is used to make the edibles does not come into question. We are of the opinion that this aspect of the process makes the cannabis edible vertical even more attractive from a margin appreciation standpoint and are favorable on the growth prospects that are associated with it.
If you are interested in learnings more about the companies that are capitalizing on the cannabis edible market, please send an email to email@example.com with the subject “Cannabis Edibles” to be added to our distribution list.
Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.
High Tide Inc. (TSXV: HITI) (OTCQB: HITIF) (FRA: 2LY), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that the Canna Cabana retail store located in Unit #101 624 8 Avenue SE, in Calgary’s Centre City East Village has begun selling recreational cannabis products for adult use. This will be the first retail cannabis store to begin servicing the local neighbourhood. This opening represents High Tide’s ninth Calgary location and 69th across Canada selling recreational cannabis products and consumption accessories.
“We continue to execute our retail expansion strategy by adding a great location in Calgary’s East Village,” said Raj Grover, President and Chief Executive Officer of High Tide. “The new store will follow High Tide’s well established and differentiated business model that offers consumers a one-stop shopping experience for all of their cannabis flower, beverage, edible and consumption accessory needs,” added Mr. Grover.
About High Tide Inc.
High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 69 current locations spanning Ontario , Alberta , Manitoba andSaskatchewan . High Tide’s retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its numerous consumption accessory businesses including e-commerce platforms Grasscity.com and CBDcity.com, and its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide’s strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aphria Inc. (TSX:APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).
Neither the TSX Venture Exchange (the “TSXV”) nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative of these terms and similar expressions. Forward-looking statements in this news release are based on certain assumptions made by High Tide. While High Tide considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements also necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the retail cannabis markets; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the retail cannabis industries generally; income tax and regulatory matters; the ability of High Tide to implement its business strategy; competition; currency and interest rate fluctuations; the COVID-19 pandemic nationally and globally and the response of governments to the COVID-19 pandemic in respect of the operation of retail stores and other risks.
Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. High Tide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters referred to above and elsewhere in High Tide’s public filings and material change reports, which are and will be available on SEDAR.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America . The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available .