High Tide announced that its Chief Financial Officer Rahim Kanji will leave the company effective February 28, 2023.
To fill the vacancy following Kanji's departure, the company is appointing Sergio Patino as interim Chief Financial Officer, effective February 28, 2023. Patino is a Chartered Professional Accountant (CPA, CMA), and has a Master's in business from University of Alberta. He joined High Tide as a Financial Consultant in November of 2022 bringing more than 20 years of global experience across multiple industries. Prior to joining High Tide, he was the America's Chief Financial Officer of a large Mining Construction company. Prior to that he led the transformation of a global Supply Chain group. He has work experience in Finance, Strategy, Supply Chain, Project Accounting & Controls, Process and Systems improvement, gained from roles held in large publicly traded companies, in the Oil & Gas, Mining and Heavy Construction industries.
CORRECTED DISCLOSURE
The company has refiled its: (i) audited consolidated financial statements for the fiscal years ended October 31, 2022 and 2021 (the "Amended Annual Financial Statements") and (ii) associated management's discussion and analysis for the fiscal years ended October 31, 2022 and 2021 (the "Amended MD&A"), which were originally filed on January 30, 2023.
The Amended Annual Financial Statements were filed to correct the following typographical errors:
- Note 26 – Segmented Information: erroneously referred to an amount of "$269,853" for the "Total assets" in the retail segment as at October 31, 2022, which has been corrected to "$241,394" (in thousands of Canadian dollars);
- Note 8 – Intangible Assets and Good Will: erroneously disclosed the forecasted growth rates of revenue for the years after the first year for each of the following E-commerce cash generating units:
- under the subheading "Ecommerce retail", the forecasted growth rate range of revenue for the years after the first year has been corrected from "4.7% to 10.7%" to "5% to 6%";
- under the subheading "Grasscity", the forecasted growth rate range of revenue for the years after the first year has been corrected from "-3.3% to 6.0%" to "3% to 5%";
- under the subheading "Smoke Cartel", the forecasted growth rate range of revenue for the years after the first year has been corrected from "3.0% to 20.3%" to "3% to 5%";
- under the subheading "FABCBD", the forecasted growth rate range of revenue for the years after the first year has been corrected from "0.7% to 6.6%" to "5% to 7%";
- under the subheading "Blessed CBD", the forecasted growth rate range of revenue for the years after the first year has been corrected from "-0.1% to 6.8%" to "5% to 7%"; and
- under the subheading "NuLeaf", the forecasted growth rate range of revenue for the years after the first year has been corrected from "5.7% to 27.6%" to "6% to 7%".
The Amended MD&A was filed to correct the following typographical errors under the following headings:
- Retail Segment Performance, under the subheading "Fabcbd.com", the number of orders processed for the during 2022 has been corrected from "51,920" to "69,845";
- Impairment Loss, under the subheading "Ecommerce retail", the forecasted growth rate range of revenue for the years after the first year has been corrected from "4.7% to 10.7%" to "5% to 6%";
- Indefinite life intangible assets: erroneously disclosed the forecasted growth rates of revenue for the years after the first year for each of the following E-commerce cash generating units:
- under the subheading "Grasscity", the forecasted growth rate range of revenue for the years after the first year has been corrected from "-3.3% to 6.0%" to "3% to 5%";
- under the subheading "Smoke Cartel", the forecasted growth rate range of revenue for the years after the first year has been corrected from "3.0% to 20.3%" to "3% to 5%";
- under the subheading "FABCBD", the forecasted growth rate range of revenue for the years after the first year has been corrected from "0.7% to 6.6%" to "5% to 7%";
- under the subheading "Blessed CBD", the forecasted growth rate range of revenue for the years after the first year has been corrected from "-0.1% to 6.8%" to "5% to 7%"; and
- under the subheading "NuLeaf Naturals", the forecasted growth rate range of revenue for the years after the first year has been corrected from "5.7% to 27.6%" to "6% to 7%".
These changes have no material impact on the company's revenues, earnings or financial position. All other information, including numbers and totals, contained in the Amended Annual Financial Statements and Amended MD&A remains unchanged. Although the company does not consider these to be material errors, the company has filed the Amended Annual Financial Statements and Amended MD&A in the interest of full disclosure and transparency.
