Today, Canadian cannabis retailer High Tide (NASDAQ:HITI) started traded publicly on the Nasdaq Exchange. Shares opened at $9.79, and have been on a steady decline since. Currently, shares of HITI stock can be bought for $8.70.
This highly anticipated listing comes following an extended period of anticipation. The company had to undertake a share consolidation to meet Nasdaq listing requirements. This consolidation resulted in High Tide investors receiving one share for every 15 shares previously owned. Via this reduction, the company was able to increase its per-share price enough to meet the minimum listing requirement of $1 per share. This move also added a margin of safety for investors, should the stock price drop further from here.
Fellow InvestorPlace contributor Robert Lakin noted the significance of this news in a recent piece. High Tide’s president and CEO was quoted as saying “Today’s news represents a significant milestone towards High Tide becoming the first major cannabis retailer anywhere in the world to be listed on Nasdaq, making our shares more accessible to a larger audience of both retail and institutional investors, and increasing our appeal to potential M&A targets.”
Indeed, this news is big. Accordingly, investors may be intrigued by this name. Let’s dive into what High Tide does for investors interested in this cannabis play.
HITI Stock Enticing for Growth Investors in the Cannabis Space
- High Tide was founded in 2009 in British Columbia, Canada with the intent of being a leading cannabis retailer.
- The company currently operates in Canada, Europe, and the U.S.
- Additionally, High Tide has been aggressively expanding. The company reports it nearly doubled its footprint in Canada as a result of the Meta Growth Acquisition.
- Other acquisitions have provided excellent growth for investors in HITI stock. These include taking an 80% stake in Fab Nutrition and the acquisition of a Canna Cabana store in Toronto.
- These moves drove a 166% revenue increase year-over-year this past year.
- Additionally, the company reported gross margins of 37% for the past fiscal year.
- Indeed, as far as speculative plays go, this is a stock that has received significant attention of late. The company hopes its Nasdaq listing will broaden its investor base.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.