High Tide reports 97% growth in revenue to 2022

High Tide Inc. HITI HITI FSE: 2 LYA released its year-end audited 2022 financial results, showing revenue increased by 97% to CA $356.9 million $265.4 million for the year ended October 31, 2022, and grew by 14% to CA $108.2 million in the fourth quarter of 2022, according to the quarter-end audited 2022 financial results.

The company completed its annual impairment testing during the fourth quarter of 2022. The company had impairment charges of CA $48.6 million, mainly related to goodwill. The company said that these non-cash charges don't affect its ability to raise debt capital from its senior lender.

High Tide entered a non-binding letter of intent with the Berlin-based health and life science company, Sanity Group. The LOI is designed to leverage the synergies between complementary companies and position each to take advantage of potential German adult use legalization within their respective supply chain verticals, with big progress on legislation expected this spring.

Sanity Group and High Tide intend to work together on go-to market strategies, identification of quality M&A opportunities, sourcing of real estate, expansion within European markets, and regulatory compliance topics such as licensing and government outreach.

The company launched the premium paid membership offering, Cabana ELITE, at the end of November, and has already onboarded over 6,000 members. The number is expected to increase over the coming quarters.

High Tide has an annual revenue run rate of over CA $450 million, a result of the increase in same-store sales and a wider retail footprint.

High Tide deployed its customized Fastendr technology in 120 locations across Canada over the course of 2022, with the possibility of licensing the technology towards the end of 2023 remaining until the end of 2023.

The high-tide shares were trading 8.09% lower at $1.59 during Tuesday's pre-market session.

This is the place where money is raised, M&A starts, and companies meet key partners. On April 11 -- 12 at Fontainebleau Miami Beach Hotel in Florida.