High Tide Inc. (“High Tide” or the “Company“) (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), Canada’s largest non-franchised retail cannabis chain which owns 10 Canna Cabana stores in Manitoba, welcomes yesterday’s passage of Bill 10 by the Manitoba legislature which will result in the repeal of Manitoba’s 6% Social Responsibility Fee on legal cannabis sales retroactive to January 1st, 2022. This will return approximately $181 million in fees paid by legal cannabis retailers over the past two years while ensuring that at least an additional $11 million2 stays with retailers moving forward on an annualized basis.
“We welcome the fact that the Manitoba legislature has voted to put $18 million back into the cannabis industry retroactively while ensuring at least $11 million stays in the hands of legal retailers, who offer tested and regulated products on an annual basis. This will help Manitoba’s legal cannabis retailers of all sizes maintain margins while re-investing in their businesses so they can better compete with a well-entrenched illicit market, and I want to thank both the PC and NDP MLAs for their support to pass this legislation,” said Raj Grover, President and Chief Executive Officer of High Tide.
“While today’s announcement is a positive first step, much more needs to be done, especially by the federal government, to ensure the sustainability of Canada’s legal cannabis sector, which directly employs tens of thousands of Canadians but is struggling to succeed under the current regulatory and legislative environment. We encourage other provinces and the federal government to follow Manitoba’s lead and come up with concrete measures to ensure our industry continues to grow and create jobs while protecting public health,” added Mr. Grover.