High Tide Inc. (“High Tide” or the “Company”) (HITI.CN) (HITIF) (2LY.F), an Alberta -based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, has filed its financial results for the first fiscal quarter of 2020 ending January 31, the highlights of which are included in this news release. The full set of Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis can be viewed by visiting High Tide’s website at www.hightideinc.com, its profile page on SEDAR at www.sedar.com or the Company’s CSE profile page at www.thecse.com.

“High Tide’s first quarter results for the 2020 fiscal year confirm the company’s positive trajectory towards profitability, with our best quarterly numbers since going public in December 2018 . The Company’s significant year-over-year increases in revenue and gross profit, coupled with cost-cutting measures across the organization, have helped narrow our loss from operations for the quarter by 60% over the same period of the previous year,” said Raj Grover, President & Chief Executive Officer. “For the remainder of this year, we will be focused on furthering our expansion in Ontario, Canada’s largest and most underserved market, with an expectation of seven additional stores by September 2020 . With more Canna Cabana locations either under development or nearing completion in Alberta , we continue to grow our retail portfolio at a sustainable pace. I am also pleased to report that High Tide has continued to generate additional subscription-based revenue through our proprietary CabanalyticsTM data analytics service,” added Mr. Grover.

First Quarter 2020 – Financial Highlights (in thousands of Canadian Dollars, except where noted):

Revenue for the three months ended January 31, 2020 increased by 173%, to $13,659 from $5,001 in the previous year. The increase in revenue was primarily driven by the retail segment of the Company with operations of Canna Cabana and KushBar.

Gross profit for the three months ended January 31, 2020 increased by 167%, to $4,777 from $1,790 in the same period in 2019, primarily due to an increase in sales volume.

Adjusted EBITDA (1) for the three months ended January 31, 2020 increased by 84%, to negative $550 from a negative $3,338 in the previous year.

for the three months ended January 31, 2020 increased by 84%, to negative $550 from a negative $3,338 in the previous year. For the three months ended January 31, 2020 , the Company generated a loss from operations of $1,943 (1Q19: $4,861 loss).

As at January 31, 2020 , the Company had a working capital deficit of $11,086 , compared to surplus of $1,938 on October 31, 2019 . The change is mainly due to convertible debt of $11,512 and related derivative liability of $3,245 maturing in less than 12 months as at January 31, 2020 .

During the first quarter of 2020, the Company secured a credit facility of up to $10,000 from Windsor Capital. This transaction, among others, is expected to provide the Company sufficient liquidity to execute on its near-term expansion plan and for its working capital needs.

During the three-month period ended January 31, 2020 , Canna Cabana locations processed over 537,000 transactions, evidencing the Company’s loyal customer base and attracting new customers to its top-rated retail experience.

As of the date of this news release, approximately 46,900 members have joined Cabana Club, with the majority subscribing in-store upon completing purchase transactions.

The Company launched its proprietary data analytics service named CabanalyticsTM and started generating subscription-based revenue. The Company continues to realize significant interest in its data analytics service, which is expected to result in a growing subscriber base.

Acquisitions in the first quarter of 2020:

In December 2019 , the Company acquired the remaining 49.9% of KushBar Inc. (“KushBar”). This transaction resulted in KushBar becoming a wholly owned subsidiary of High Tide.

In January 2020 , the Company acquired 2680495 Ontario Inc., a company that operates a Canna Cabana branded retail cannabis store in Hamilton, Ontario .

In January 2020 , the Company acquired a 50% interest in a partnership which holds a Canna Cabana-branded retail cannabis store in Sudbury, Ontario .

Subsequent to the end of the first fiscal quarter of the 2020 fiscal year, the Company:

Entered into an agreement to sell the assets of KushBar in consideration for a deemed value of $12,000 in common shares of Halo Labs.

The Company closed the acquisition of 102088460 Saskatchewan Ltd., which operates a licensed retail cannabis store in Tisdale, Saskatchewan (the “Tisdale Store”).

Selected financial information for the first quarter ended January 31, 2020 :

(Expressed in thousands of Canadian Dollars)

Three Months Ended January 31, 2020 $ 2019 $ % Change Revenue 13,659 5,001 173% Gross Profit 4,777 1,790 167% Total Operating Expenses 6,720 6,651 1% Adjusted EBITDA(a) (550) (3,338) 84% Loss from Operations (1,943) (4,861) (60%) Net Loss (3,852) (3,822) 1% Loss Per Share (Basic) (0.02) (0.02) – Loss Per Share (Diluted) (0.02) (0.02) –

(a) Adjusted EBITDA is a non-IFRS financial measure.

The following is a reconciliation of Adjusted EBITDA to net loss:

Three Months Ended January 31, 2020 2019 Net Loss (3,852) (3,822) Income taxes (85) (1,230) Accretion and interest 1,815 106 Depreciation and amortization 1,366 186 EBITDA (1) (756) (4,760) Foreign exchange (4) 75 Transaction and acquisition costs 622 142 Revaluation of derivative liability (439) – Share-based compensation 27 1,232 Discount on accounts receivable – (24) Gain on disposal of property and equipment – (3) Adjusted EBITDA (1) (550) (3,338)

(1) Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA. These measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company’s operating performance and therefore highlight trends in Company’s core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company. (2) Financial information for 2019 has not been restated for the adoption of IFRS 16. For the three months ended January 31, 2020, the Company made 969 in lease payments.

Outlook

The Company has been continuing to respond to COVID-19 with changes to internal business practices consistent with the guidelines of public health authorities. Since inception, High Tide’s purpose has been to serve cannabis enthusiasts and a significant part of that commitment is ensuring the Company is putting the safety of its customers and employees first. The Company has implemented significant measures to protect the health and wellbeing of these valued groups of individuals. High Tide continues to monitor the situation closely while keeping its retail locations and wholesale facilities open, where permitted.

The Company believes that the senior secured credit facility advanced by Windsor Capital, together with the proceeds from the eventual sale of the common shares of Halo Labs, position the Company to be well funded to execute on its strategic objectives in 2020.