High Tide Inc.(NASDAQ:HITI) stock fell 5.37% (As on Sep 15, 12:19:31 PM UTC-4, Source: Google Finance) after the company in the third quarter of FY 21 has reported 99% rise in revenue, compared to $24.1 million in the same quarter last year. Currently, Cabana Club membership has grown by 45% to approximately 221,127 (June 28, 2021 – 151,240) due in large part to the success of our ‘One Stop Shop’ accessories promotion. Gross profit has risen by 75% to $16.7 million in the three months ended July 31, 2021, compared to $9.5 million in the same quarter last year. Gross profit margin in the third quarter has fallen to 35% compared to 40% in the same quarter last year. Adjusted EBITDA for the third quarter of 2021, was $1.5 million compared to $3.4 million for the same quarter last year. The decrease in adjusted EBITDA was primarily due to expenses related to the up listing of the Company’s stock to Nasdaq
Moreover, for the third quarter of FY 21, geographically, 38.4 million of revenue was earned in Canada, $9.6 million in the United States and an immaterial amount internationally. The revenue from the United States increased to $9.6 million, compared to $5.7 million for the second quarter of 2021, representing a 69% increase sequentially. Segment-wise in the three months ended July 31, 2021, $46.3 million of revenue was generated by Retail, $1.8 million by Wholesale, and an immaterial amount by Corporate. The cash on hand as of July 31, 2021, were of total $26.6 million compared to $7.5 million as of October 31, 2020.
Meanwhile, during the third quarter, the Company completed the acquisition of FABCBD on May 10, 2021, and Daily High Club (“DHC”) on July 6, 2021, enhancing the Company’s e-commerce business. The Company completed a 15:1 share consolidation on May 14, 2021, and began trading on the Nasdaq on June 2, 2021, under the symbol “HITI”. The Company was added to three prominent ETFs: Cannabis ETF (“THCX”), AdvisorShares Pure Cannabis ETF (“YOLO”), and Horizons Marijuana Life Sciences Index ETF (“HMMJ”).
In addition, the Company has closed an oversubscribed bought deal equity financing on May 26, 2021, for gross proceeds of $23.2 million. The Company completed the sale of KushBar retail cannabis assets to Halo for $5.7 million. The Company announced its plan to acquire leading online retailer DS Distribution Inc., and plans to increase its presence in Saskatchewan through acquisition of a Regina retail store portfolio.