High Tide Inc., a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, announced today that its subsidiary, FAB CBD, has launched a CBD Subscribe-and-Save discount program in the United States. Under this program, customers will be able to customize their orders each month to suit their specific needs, with items from across all FAB CBD product lines including oils, gummies, topicals, pet treats, and superfoods. Customers will also have the ability to customize their delivery frequency for each individual product in their order within a range of every 2-10 weeks, allowing delivery frequencies to optimally match each customer’s needs for every product. In addition, by opting-in to the Subscribe-and-Save discount program, customers will receive a 20% discount for life on all FAB CBD products that they purchase.
Beyond improving convenience and savings for customers, this new subscription service also presents a distinct financial upside for FAB CBD. By enrolling customers in a service that auto-renews orders, FAB CBD anticipates boosting its lifetime value per customer beyond its current level. Furthermore, this service will allow FAB CBD to cultivate a recurring revenue stream that will be much more predictable than when customers only had the option to manually place their orders.
“The launch of the FAB CBD Subscribe-and-Save discount program is an exciting example of the economies of scale that High Tide is able to leverage due to our forward-thinking acquisition strategy. High Tide has acquired businesses that have the ability to drive recurring and predictable revenue, which is a long-term focus of our company, and can be evidenced through the rapid growth of our Cabana Club loyalty program as well as subscription services, such as those offered by Daily High Club and NuLeaf Naturals,” said Raj Grover, President and Chief Executive Officer of High Tide.
“Today’s announcement is just the beginning of our drive to bolster our cross-platform synergies and there will be more news to come, including the planned launch of a Blessed CBD Subscribe-and-Save service for the U.K. market in the near-term. Even in the absence of federal marijuana legalization in the U.S., we are committed to driving revenue growth through initiatives that are already federally-permissible, and this is yet another example of that. As we continue to develop more cross-platform synergies, we expect to be able to further grow our revenues by leveraging our diversified cannabis ecosystem through organic innovations such as this, without added capital costs,” added Mr. Grover.
GRANT OF OPTIONS
Furthermore, High Tide granted 15,000 stock options (the “Options”) to certain employees, that fully vest over a two (2) year period and are exercisable for a period of three (3) years.
ABOUT HIGH TIDE
High Tide is a leading retail-focused cannabis company with bricks and mortar as well as global e-commerce assets. The Company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 112 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide was featured in the third annual Report on Business Magazine’s ranking of Canada’s Top Growing Companies in 2021, and was named as one of the top 10 performing diversified industries stocks in the 2022 TSX Venture 50™. The Company is also North America’s first and only cannabis discount club retailer, featuring Canna Cabana, Meta Cannabis Co., and Meta Cannabis Supply Co. banners, with additional locations under development across the country. 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. For more information about High Tide Inc., please visit www.hightideinc.com
