Mercedes w114 coupe for sale usa
CrossStitchDestash
2019.11.30 20:32 CrossStitchDestash
💰 Buy, sell, or trade cross stitch patterns and supplies you will never use!
2014.06.10 18:10 -President_0bama amiibo
Collectible Nintendo figures with NFC functionality that allows them to interact with many games on the Nintendo Wii U, Nintendo 3DS, and Nintendo Switch.
2009.07.28 09:06 rickyisawesome Lollapalooza Chicago
Welcome to the subreddit for Lollapalooza Chicago!
2023.03.28 20:49 CountryPitiful Top F1 Driver Earns $55m/yr, but Liberty Media (F1's new owner) earned $12 Billion...
I was watching 'Drive To Survive' on Netflix and learned that a top F1 driver (Max Verstappen) will earn $55M this year...
This sent me down an F1 Rabbit hole. I've learned a few things that I think are useful to builders:
Liberty Media is the strategic force behind F1. They bought the business for $4.4B in 2017. Since then, they've grown it into a $17B empire.
Here's The Business:
Meet - Liberty Media. Across its portfolio, it generates $12B/yr in revenue (F1, SiriusXM, The Atlanta Braves, Live Nation).
But how did they increase F1's value by $12B in just 6 years?
Here's How F1 makes Money:
It has 3 levers:
1) Race Promotion: In 2022, F1 secured 23 annual circuit contracts. Each pays an annual fee. For example - Saudi Arabia pays $55m/yr to host its race.
2) Media Rights: Broadcasters pay up for exclusive partnership deals with F1.
So how did Liberty Media create so much value in so little time?
Here's How They Revived The Business:
1) Budget Caps - In 2019, Mercedes spent $443M on its team. Williams (last place) could only afford $132M. Top teams would reinvest everything to win and recoup profits through indirect sales of their core products (e.g Ferrari, McLaren, RedBull).
2) "Build in public" - Next, they broke the secrecy behind F1 and partnered w/ Netflix: - The show "Drive to Survive" attracted 16M viewers. - US viewership went from 537k (2018) to 1.4M (2022).
3) Be Accessible - They doubled down on the US market by aggressively adding new locations. Miami & Las Vegas are their most recent additions.
Why Does It Matter?
Even F1, one of the largest and oldest (Founded in 1950) sports organizations in the world, can take their eye off the ball. By reassessing its business it was able to ~4x its value in 6 years.
This is what stood out to me:
1) Use Data To Improve Your Product - If you let your biggest customer make the product decisions, you may miss the obvious. For F1, its "product" is your attention that it can sell to advertisers. If they just listened to their biggest partners (Mercedes & Ferarri) there would be no product evolution.
2) Increase awareness by "building in public" - The Netflix show 'drive to survive' lifted the curtain and removed the secrecy behind the sport. This opened up an entirely new audience. We can all build in public (I'm about to).
3) Increase accessibility - Your goal as an entrepreneur is to understand what part of your product brings value to your customer and get them to that point in as few steps (or clicks) as possible. By putting new racetracks in top cities across the US they've dramatically increased customer access.
Thanks all! Lemme know what you think.
I research companies & share my learnings here.
submitted by CountryPitiful to Entrepreneur [link] [comments]
This sent me down an F1 Rabbit hole. I've learned a few things that I think are useful to builders:
Liberty Media is the strategic force behind F1. They bought the business for $4.4B in 2017. Since then, they've grown it into a $17B empire.
Here's The Business:
Meet - Liberty Media. Across its portfolio, it generates $12B/yr in revenue (F1, SiriusXM, The Atlanta Braves, Live Nation).
But how did they increase F1's value by $12B in just 6 years?
Here's How F1 makes Money:
It has 3 levers:
1) Race Promotion: In 2022, F1 secured 23 annual circuit contracts. Each pays an annual fee. For example - Saudi Arabia pays $55m/yr to host its race.
2) Media Rights: Broadcasters pay up for exclusive partnership deals with F1.
- Sky Sports paid £1B to extend its exclusive contract with F1 from 2019-24 to viewers in the UK and Ireland.
- ESPN pays $90m/yr a year for its US TV rights.
So how did Liberty Media create so much value in so little time?
Here's How They Revived The Business:
1) Budget Caps - In 2019, Mercedes spent $443M on its team. Williams (last place) could only afford $132M. Top teams would reinvest everything to win and recoup profits through indirect sales of their core products (e.g Ferrari, McLaren, RedBull).
2) "Build in public" - Next, they broke the secrecy behind F1 and partnered w/ Netflix: - The show "Drive to Survive" attracted 16M viewers. - US viewership went from 537k (2018) to 1.4M (2022).
3) Be Accessible - They doubled down on the US market by aggressively adding new locations. Miami & Las Vegas are their most recent additions.
Why Does It Matter?
Even F1, one of the largest and oldest (Founded in 1950) sports organizations in the world, can take their eye off the ball. By reassessing its business it was able to ~4x its value in 6 years.
This is what stood out to me:
1) Use Data To Improve Your Product - If you let your biggest customer make the product decisions, you may miss the obvious. For F1, its "product" is your attention that it can sell to advertisers. If they just listened to their biggest partners (Mercedes & Ferarri) there would be no product evolution.
2) Increase awareness by "building in public" - The Netflix show 'drive to survive' lifted the curtain and removed the secrecy behind the sport. This opened up an entirely new audience. We can all build in public (I'm about to).
3) Increase accessibility - Your goal as an entrepreneur is to understand what part of your product brings value to your customer and get them to that point in as few steps (or clicks) as possible. By putting new racetracks in top cities across the US they've dramatically increased customer access.
Thanks all! Lemme know what you think.
I research companies & share my learnings here.
2023.03.28 20:47 CountryPitiful Top F1 Driver Earns $55M, but Liberty Media (F1's new owner) earned $12B.
I was watching 'Drive To Survive' on Netflix and learned that a top F1 driver (Max Verstappen) will earn $55M this year...
This sent me down an F1 Rabbit hole. I've learned a few things that I think are useful to builders:
Liberty Media is the strategic force behind F1. They bought the business for $4.4B in 2017. Since then, they've grown it into a $17B empire.
Here's The Business:
Meet - Liberty Media. Across its portfolio, it generates $12B/yr in revenue (F1, SiriusXM, The Atlanta Braves, Live Nation).
But how did they increase F1's value by $12B in just 6 years?
Here's How F1 makes Money:
It has 3 levers:
1) Race Promotion: In 2022, F1 secured 23 annual circuit contracts. Each pays an annual fee. For example - Saudi Arabia pays $55m/yr to host its race.
2) Media Rights: Broadcasters pay up for exclusive partnership deals with F1.
So how did Liberty Media create so much value in so little time?
Here's How They Revived The Business:
1) Budget Caps - In 2019, Mercedes spent $443M on its team. Williams (last place) could only afford $132M. Top teams would reinvest everything to win and recoup profits through indirect sales of their core products (e.g Ferrari, McLaren, RedBull).
2) "Build in public" - Next, they broke the secrecy behind F1 and partnered w/ Netflix: - The show "Drive to Survive" attracted 16M viewers. - US viewership went from 537k (2018) to 1.4M (2022).
3) Be Accessible - They doubled down on the US market by aggressively adding new locations. Miami & Las Vegas are their most recent additions.
Why Does It Matter?
Even F1, one of the largest and oldest (Founded in 1950) sports organizations in the world, can take their eye off the ball. By reassessing its business it was able to ~4x its value in 6 years.
This is what stood out to me:
1) Use Data To Improve Your Product - If you let your biggest customer make the product decisions, you may miss the obvious. For F1, its "product" is your attention that it can sell to advertisers. If they just listened to their biggest partners (Mercedes & Ferarri) there would be no product evolution.
2) Increase awareness by "building in public" - The Netflix show 'drive to survive' lifted the curtain and removed the secrecy behind the sport. This opened up an entirely new audience. We can all build in public (I'm about to).
3) Increase accessibility - Your goal as an entrepreneur is to understand what part of your product brings value to your customer and get them to that point in as few steps (or clicks) as possible. By putting new racetracks in top cities across the US they've dramatically increased customer access.
Thanks all! Lemme know what you think.
I research companies & share the learnings here.
submitted by CountryPitiful to EntrepreneurRideAlong [link] [comments]
This sent me down an F1 Rabbit hole. I've learned a few things that I think are useful to builders:
Liberty Media is the strategic force behind F1. They bought the business for $4.4B in 2017. Since then, they've grown it into a $17B empire.
Here's The Business:
Meet - Liberty Media. Across its portfolio, it generates $12B/yr in revenue (F1, SiriusXM, The Atlanta Braves, Live Nation).
But how did they increase F1's value by $12B in just 6 years?
Here's How F1 makes Money:
It has 3 levers:
1) Race Promotion: In 2022, F1 secured 23 annual circuit contracts. Each pays an annual fee. For example - Saudi Arabia pays $55m/yr to host its race.
2) Media Rights: Broadcasters pay up for exclusive partnership deals with F1.
- Sky Sports paid £1B to extend its exclusive contract with F1 from 2019-24 to viewers in the UK and Ireland.
- ESPN pays $90m/yr a year for its US TV rights.
So how did Liberty Media create so much value in so little time?
Here's How They Revived The Business:
1) Budget Caps - In 2019, Mercedes spent $443M on its team. Williams (last place) could only afford $132M. Top teams would reinvest everything to win and recoup profits through indirect sales of their core products (e.g Ferrari, McLaren, RedBull).
2) "Build in public" - Next, they broke the secrecy behind F1 and partnered w/ Netflix: - The show "Drive to Survive" attracted 16M viewers. - US viewership went from 537k (2018) to 1.4M (2022).
3) Be Accessible - They doubled down on the US market by aggressively adding new locations. Miami & Las Vegas are their most recent additions.
Why Does It Matter?
Even F1, one of the largest and oldest (Founded in 1950) sports organizations in the world, can take their eye off the ball. By reassessing its business it was able to ~4x its value in 6 years.
This is what stood out to me:
1) Use Data To Improve Your Product - If you let your biggest customer make the product decisions, you may miss the obvious. For F1, its "product" is your attention that it can sell to advertisers. If they just listened to their biggest partners (Mercedes & Ferarri) there would be no product evolution.
2) Increase awareness by "building in public" - The Netflix show 'drive to survive' lifted the curtain and removed the secrecy behind the sport. This opened up an entirely new audience. We can all build in public (I'm about to).
3) Increase accessibility - Your goal as an entrepreneur is to understand what part of your product brings value to your customer and get them to that point in as few steps (or clicks) as possible. By putting new racetracks in top cities across the US they've dramatically increased customer access.
Thanks all! Lemme know what you think.
I research companies & share the learnings here.
2023.03.28 20:23 yumechan34 Selling! Need money for cancer treatment.
 | Hello! I am putting up some of my collection for sale. I'm in need of money for medical bills. Unfortunately I was just diagnosed with a rare form of breast cancer. I've already had to do 3 surgeries and I have another coming as well as radiation treatment plus medication. Offers are welcome. Shipping is not included and comes from MN, USA. I use pirate ship and can determine your shopping estimate with your zip code. My big boi Archie in the back is not for sale. All squish have tags and are in great condition unless otherwise stated. Please comment if you are going to dm me. submitted by yumechan34 to squishmallows [link] [comments] Lena the guava 11"- 13$ Minya the mushroom 12"- 25$ Tank the hammerhead - thinking of keeping him but make me an offer I guess Emanga the leopard baby 7.5"- 10$ Wu the rabbit stackable - 24$ Pilar the grasshopper 8" - 9$ (2) Jakkaria the boba tea 11" - 12$ Lavada the rabbit 12" - 24$ Bruce the walrus 8" - 20$ Rayford the gnome 8" - 9$ Wyatt the watermelon 8" -8$ Ilene the unicorn baby 7.5" - 14$ Marshina the hot cocoa (small stain could be washed easily) 8" - 6$ Paco the parrot baby 7.5" - 10$ Bruce the walrus 5" - 7$ Martina the fish 5" - 5$ |
2023.03.28 20:19 SweetSaltWater Toyota Hilux Hilux, Why not in USA something similar?
Ok, with recent high prices across all new vehicles, why Toyota doesn't start producing low end pickup trucks? I am reading about Toyota Hilux truck production outside of USA and it has such a success story behind it.
I myself would run to Toyota dealership if truck like Hilux would be fore sale without taking on 2nd mortgage loan. Small trucks would be so ideal for typical American to get things done around the house and been a transportation around town or for a weekend worrier. Why do we have to drive big trucks and waste our hard earned dollar just to look good in it.
What's worse if that Ford is ahead of a game as they are making Maverick with low MSRP but their dealers are horrible with Price adjustments as of now.
So what do you think, should Toyota bring back small pickup trucks or it will never happen?
submitted by SweetSaltWater to Toyota [link] [comments]
I myself would run to Toyota dealership if truck like Hilux would be fore sale without taking on 2nd mortgage loan. Small trucks would be so ideal for typical American to get things done around the house and been a transportation around town or for a weekend worrier. Why do we have to drive big trucks and waste our hard earned dollar just to look good in it.
What's worse if that Ford is ahead of a game as they are making Maverick with low MSRP but their dealers are horrible with Price adjustments as of now.
So what do you think, should Toyota bring back small pickup trucks or it will never happen?
2023.03.28 20:01 KhoaFraelich REVIEW BMW 220d Coupé M Sport offers driving thrills without the thirst
 | submitted by KhoaFraelich to CarScannerOBD2 [link] [comments] https://preview.redd.it/fl3sw2e95gpa1.png?width=750&format=png&auto=webp&s=fe1a8c4b5fa52902da95a904ecd776d2dfb1ee1d The 2 Series is one of the few modern BMWs not styled with a contentiously large grille. Picture: DENIS DROPPA The sensible turbodiesel engine was somewhat out of kilter with the racy looks of this low-slung coupé as the car’s athletic shape seemed to call for high-revving petrol power. But that’s not to say the BMW 220d Coupe M Sport is deficient in the performance department. The four-cylinder 2.0 turbodiesel engine has been a stalwart in BMW’s range, powering several of its larger models with verve and efficiency, and its 140kW and 400Nm feel satisfyingly lively in the light and compact 2 Series. The respectable seven-second 0-100km/h sprint and 237km/h top speed attest to this, and the 220d has peppy pace when the throttle is thrust in anger, scooting off the line with spirit and almost no turbo lag. There is enough power whenever you need it, whether stealing gaps in traffic or punching past long trucks on the open road. It’s just that the quiet and low-revving engine has an easygoing demeanour that doesn’t inspire hard-throttle driving, which contributed to the economical 6.8l/100km average we attained in the car. At R889,706 the 220d seems like the most sensible buy in the 2 Series Coupé range for its mix of performance and economy. The car is also available as the 220i coupe M Sport (R842,590) with outputs of 135kW and 300Nm, and the flagship M240i xDrive Coupe with 285kW/500Nm (R1,138,662). The M2 will arrive later this year as the Alpha of the range, wielding 338kW and 550Nm. Despite being one of the Munich firm’s smallest cars, the new 2 Series delivers the typical business class BMW experience. The second generation 2 Series Coupé, now more closely based on the larger 4 Series, is more grown up than the 1 Series-based coupé that preceded it in 2014. At 4,537mm the car is 105mm longer than the model it replaces, with increases in width and wheelbase too, and with its 12% improvement in torsional rigidity it feels impressively solid. Chassis components carried over from the 4 Series further distinguish the new 2 Series Coupé from the compact 1 Series. Standard M Sport suspension and low-profile 19-inch tyres give the car a ride that’s on the firm side, but without being uncomfortably jarring, while the lengthened wheelbase prevents it from feeling choppy. Though there is some noticeable jittering over bumps and potholes, the car generally delivers an acceptably smooth ride. It may not be Munich’s most powerful beast, but the 220d Coupé delivers the typically slick and pointy handling of compact rear wheel drive BMWs. It’s a treat to throw this car through a curve and experience its pressed-down nature and well-weighted steering, and there are eco, normal and sport drive modes that affect throttle, steering and gearshift responses. There’s enough power to kick the tail out when you apply the juice too hard, though electronic nannies ensure such playful diversions are kept safely in check. https://preview.redd.it/xrjz0wqd5gpa1.png?width=750&format=png&auto=webp&s=d062a815f448e84b5ac6703a5ed1ba23dfb69d95 Inside the new 2 Series the executive flair is laid on with high-quality trimmings. The sporting appeal is raised by leathesuede bucket seats and M colour trim on the doors. The obligatory digitisation comes in the form of an infotainment touchscreen and a digital instrument panel, but user-friendly physical controllers, including the tried and tested iDrive knob, remain for many of the oft-used functions. Despite the car’s increase in size, the two rear seats remain cramped for adults and are best suited to small children. Boot space is a creditable 390l , however, and the split rear seats flip down to provide extra loading space. Gadgets include a reversing camera, doors that automatically unlock and lock when you approach/leave the car and USB chargers. Like most German premium cars, the 220d is not overly endowed with features, and items such as electrically adjustable front seats, adaptive cruise control and parking sensors all have to be ticked in the options list. https://preview.redd.it/0g8j7y9h5gpa1.png?width=750&format=png&auto=webp&s=f2ee9ee1fbc60e15db5b7494f7b02fc9ac0f8b94 Larger and lower than its forerunner, the new 2 Series is a more grown-up car. Picture: DENIS DROPPA The 2 Series is one of the few modern BMWs not styled with a contentiously large grille, and has conventionally sized air intakes — much to the relief of some, we suspect. Instead of oversized nostrils it uses flared wheel arches and a “power dome” on the bonnet to relay a youthful and extrovert aura, aided by sitting 28mm lower than its predecessor for a more sporty and pressed-down look. Two-door cars are rare these days and the BMW 220d Coupé M Sport makes no pretensions at family practicality. It’s a car that will be enjoyed for its athletic looks and sporty driver appeal, with the thirst of a teetotaller as a bonus. Tech specs ENGINE Type: Four-cylinder petrol turbo Capacity: 2.0l Power: 140kW Torque: 4000Nm TRANSMISSION Type: Eight-speed Steptronic automatic DRIVETRAIN Type: Rear-wheel drive PERFORMANCE Top speed: 237km/h 0-100km/h: 7.0 seconds (claimed) Fuel consumption: 4.8l/100km (claimed); 6.8l/100km (as tested) Emissions: 126g/km STANDARD FEATURES Electronic stability control, ABS brakes, six airbags, run flat tyres, electric windows, LED daytime running lights, adaptive headlights, climate control, keyless access, cruise control, driving modes, rain sensor wipers, automatic headlamps, tyre pressure sensor, sports suspension, trip computer, infotainment system, suede and artificial leather seats, navigation. COST OF OWNERSHIP Warranty: Two years/unlimited km Maintenance plan: Five years/100,000km Price: R889,706 Lease: R18,998 a month *at 10% interest over 60 months no deposit BMW 220d Coupé M Sport WE LIKE: Fun-to-drive nature, styling, fuel economy. WE DISLIKE: Cramped rear seat, not overstocked with features. VERDICT: Driver’s car without the thirst. Motor News star rating Design **** Performance **** Economy ***** Ride *** Handling **** Safety ***** Value For Money **** Overall **** The Competition Audi A3 sedan 40 TFSI S line, 140kW/320Nm — R725,600 Mercedes A200d sedan AMG Line, 110kW/320Nm — R816,095 Source: Heraldlive |
2023.03.28 19:35 Professional_Disk131 Element79 Gold Completes Rework of Final Payment Structure for Acquisition of Nevada Portfolio (CSE: ELEM, OTC: ELMGF)
 | submitted by Professional_Disk131 to SmallCap_MiningStocks [link] [comments] https://preview.redd.it/9vhg7271niqa1.png?width=461&format=png&auto=webp&s=b9efb31302df8225463c5d416b5de33f5e7c6dba Vancouver, British Columbia – TheNewswire - March 28, 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the “Company”) is pleased to announce it has successfully reworked the final payment structure due for the portfolio of Nevada assets that were purchased and announced on December 23, 2021. Original transaction terms Per the terms outlined in the Company’s news release of December 23, 2021, the Company paid $2,000,289.97 in cash payments and issued a total of 5,095,733 common shares on December 23. 2021. The Company further made a payment of $150,000 in 2022 to complete the “initial payment” and accounted for the final payment of CAD $2,000,000 via a Contingent Value Rights agreement (“CVR Agreement”) with Waterton Nevada Splitter, LLC (“Waterton”), with the final payment due on December 23, 2022. Updated final settlement terms As an update to the CVR Agreement, the Company has worked with Waterton to create an alternate structure. As part of the terms of the updated payment agreement, the final $2,000,000 milestone payment due will be converted into a two-year, zero-coupon debt facility with convertibility options priced at $0.15 and a 10% default interest rate. Prepayment by the Company is possible with a 60-day advance notice and paid at a 10% premium to the principal amount remaining. James Tworek, Element79 Gold’s CEO recounts: “Late last year, given the global economic conditions and overlaying market conditions for raising capital to complete this milestone payment, we proactively reached out to Waterton starting at the end of Summer to discuss alternate options. We found the discussions and negotiation processes fruitful, with Waterton being understanding the current investment climate. We feel that this solution is mutually beneficial and gives a strong vote of confidence in the Company’s share price growth potential given the conversion pricing and two-year timeline to maturity. We can close this chapter for the time being and can now focus energies on Element79’s core projects, generating revenue, and divesting of its non-core assets. About Element79 Gold Element79 Gold is a mining company focused on gold, silver and associated metals. Element79 Gold’s main focus is on two core properties: developing its previously-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to bring it back into production in the near term; and its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties. Maverick Springs hosts a 43-101-compliant, pit-constrained mineral resource estimate reflecting an inferred resource of 3.71 million ounces of gold equivalent “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date of Oct. 19, 2022 (see news release October 20, 2022, available on SEDAR). The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which are non-core to its primary business focus. In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. The Company also has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. The Company is analyzing the non-core Nevada projects, The Dale Property and Snowbird Property for further merit of exploration, sale or spin-out. For more information about the Company, please visit www.element79.gold For corporate matters, please contact: James C. Tworek, Chief Executive Officer Email: [[email protected]](mailto:[email protected]) For investor relations inquiries, please contact: Investor Relations Department Phone: +1.613.879.9387 Email: [[email protected]](mailto:[email protected]) |
2023.03.28 19:34 Professional_Disk131 Element79 Gold Completes Rework of Final Payment Structure for Acquisition of Nevada Portfolio (CSE: ELEM, OTC: ELMGF)
 | submitted by Professional_Disk131 to 10xPennyStocks [link] [comments] https://preview.redd.it/ayxmn80zmiqa1.png?width=461&format=png&auto=webp&s=725034503aadd18305156cd84be8b62453575b45 Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the “Company”) is pleased to announce it has successfully reworked the final payment structure due for the portfolio of Nevada assets that were purchased and announced on December 23, 2021. Original transaction terms Per the terms outlined in the Company’s news release of December 23, 2021, the Company paid $2,000,289.97 in cash payments and issued a total of 5,095,733 common shares on December 23. 2021. The Company further made a payment of $150,000 in 2022 to complete the “initial payment” and accounted for the final payment of CAD $2,000,000 via a Contingent Value Rights agreement (“CVR Agreement”) with Waterton Nevada Splitter, LLC (“Waterton”), with the final payment due on December 23, 2022. Updated final settlement terms As an update to the CVR Agreement, the Company has worked with Waterton to create an alternate structure. As part of the terms of the updated payment agreement, the final $2,000,000 milestone payment due will be converted into a two-year, zero-coupon debt facility with convertibility options priced at $0.15 and a 10% default interest rate. Prepayment by the Company is possible with a 60-day advance notice and paid at a 10% premium to the principal amount remaining. James Tworek, Element79 Gold’s CEO recounts: “Late last year, given the global economic conditions and overlaying market conditions for raising capital to complete this milestone payment, we proactively reached out to Waterton starting at the end of Summer to discuss alternate options. We found the discussions and negotiation processes fruitful, with Waterton being understanding the current investment climate. We feel that this solution is mutually beneficial and gives a strong vote of confidence in the Company’s share price growth potential given the conversion pricing and two-year timeline to maturity. We can close this chapter for the time being and can now focus energies on Element79’s core projects, generating revenue, and divesting of its non-core assets. About Element79 Gold Element79 Gold is a mining company focused on gold, silver and associated metals. Element79 Gold’s main focus is on two core properties: developing its previously-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to bring it back into production in the near term; and its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties. Maverick Springs hosts a 43-101-compliant, pit-constrained mineral resource estimate reflecting an inferred resource of 3.71 million ounces of gold equivalent “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date of Oct. 19, 2022 (see news release October 20, 2022, available on SEDAR). The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which are non-core to its primary business focus. In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. The Company also has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. The Company is analyzing the non-core Nevada projects, The Dale Property and Snowbird Property for further merit of exploration, sale or spin-out. For more information about the Company, please visit www.element79.gold For corporate matters, please contact: James C. Tworek, Chief Executive Officer Email: [[email protected]](mailto:[email protected]) For investor relations inquiries, please contact: Investor Relations DepartmentPhone: +1.613.879.9387Email: [[email protected]](mailto:[email protected]) |
2023.03.28 19:34 Professional_Disk131 Element79 Gold Completes Rework of Final Payment Structure for Acquisition of Nevada Portfolio (CSE: ELEM, OTC: ELMGF)
 | submitted by Professional_Disk131 to PennyQueen [link] [comments] https://preview.redd.it/saufvtbvmiqa1.png?width=461&format=png&auto=webp&s=426b1a3c6737ee748b417cd90c37d4e078d7cc57 Vancouver, British Columbia – TheNewswire - March 28, 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the “Company”) is pleased to announce it has successfully reworked the final payment structure due for the portfolio of Nevada assets that were purchased and announced on December 23, 2021. Original transaction terms Per the terms outlined in the Company’s news release of December 23, 2021, the Company paid $2,000,289.97 in cash payments and issued a total of 5,095,733 common shares on December 23. 2021. The Company further made a payment of $150,000 in 2022 to complete the “initial payment” and accounted for the final payment of CAD $2,000,000 via a Contingent Value Rights agreement (“CVR Agreement”) with Waterton Nevada Splitter, LLC (“Waterton”), with the final payment due on December 23, 2022. Updated final settlement terms As an update to the CVR Agreement, the Company has worked with Waterton to create an alternate structure. As part of the terms of the updated payment agreement, the final $2,000,000 milestone payment due will be converted into a two-year, zero-coupon debt facility with convertibility options priced at $0.15 and a 10% default interest rate. Prepayment by the Company is possible with a 60-day advance notice and paid at a 10% premium to the principal amount remaining. James Tworek, Element79 Gold’s CEO recounts: “Late last year, given the global economic conditions and overlaying market conditions for raising capital to complete this milestone payment, we proactively reached out to Waterton starting at the end of Summer to discuss alternate options. We found the discussions and negotiation processes fruitful, with Waterton being understanding the current investment climate. We feel that this solution is mutually beneficial and gives a strong vote of confidence in the Company’s share price growth potential given the conversion pricing and two-year timeline to maturity. We can close this chapter for the time being and can now focus energies on Element79’s core projects, generating revenue, and divesting of its non-core assets. About Element79 Gold Element79 Gold is a mining company focused on gold, silver and associated metals. Element79 Gold’s main focus is on two core properties: developing its previously-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to bring it back into production in the near term; and its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties. Maverick Springs hosts a 43-101-compliant, pit-constrained mineral resource estimate reflecting an inferred resource of 3.71 million ounces of gold equivalent “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date of Oct. 19, 2022 (see news release October 20, 2022, available on SEDAR). The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which are non-core to its primary business focus. In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. The Company also has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. The Company is analyzing the non-core Nevada projects, The Dale Property and Snowbird Property for further merit of exploration, sale or spin-out. For more information about the Company, please visit www.element79.gold For corporate matters, please contact: James C. Tworek, Chief Executive Officer Email: [[email protected]](mailto:[email protected]) For investor relations inquiries, please contact: Investor Relations Department Phone: +1.613.879.9387 Email: [[email protected]](mailto:[email protected]) |
2023.03.28 19:33 Professional_Disk131 Element79 Gold Completes Rework of Final Payment Structure for Acquisition of Nevada Portfolio (CSE: ELEM, OTC: ELMGF)
 | submitted by Professional_Disk131 to Canadapennystocks [link] [comments] https://preview.redd.it/vt0wundomiqa1.png?width=461&format=png&auto=webp&s=50c40a05d6f028315ec0be575007ad41bd97ebec Vancouver, British Columbia – TheNewswire - March 28, 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the “Company”) is pleased to announce it has successfully reworked the final payment structure due for the portfolio of Nevada assets that were purchased and announced on December 23, 2021. Original transaction terms Per the terms outlined in the Company’s news release of December 23, 2021, the Company paid $2,000,289.97 in cash payments and issued a total of 5,095,733 common shares on December 23. 2021. The Company further made a payment of $150,000 in 2022 to complete the “initial payment” and accounted for the final payment of CAD $2,000,000 via a Contingent Value Rights agreement (“CVR Agreement”) with Waterton Nevada Splitter, LLC (“Waterton”), with the final payment due on December 23, 2022. Updated final settlement terms As an update to the CVR Agreement, the Company has worked with Waterton to create an alternate structure. As part of the terms of the updated payment agreement, the final $2,000,000 milestone payment due will be converted into a two-year, zero-coupon debt facility with convertibility options priced at $0.15 and a 10% default interest rate. Prepayment by the Company is possible with a 60-day advance notice and paid at a 10% premium to the principal amount remaining. James Tworek, Element79 Gold’s CEO recounts: “Late last year, given the global economic conditions and overlaying market conditions for raising capital to complete this milestone payment, we proactively reached out to Waterton starting at the end of Summer to discuss alternate options. We found the discussions and negotiation processes fruitful, with Waterton being understanding the current investment climate. We feel that this solution is mutually beneficial and gives a strong vote of confidence in the Company’s share price growth potential given the conversion pricing and two-year timeline to maturity. We can close this chapter for the time being and can now focus energies on Element79’s core projects, generating revenue, and divesting of its non-core assets. About Element79 Gold Element79 Gold is a mining company focused on gold, silver and associated metals. Element79 Gold’s main focus is on two core properties: developing its previously-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to bring it back into production in the near term; and its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties. Maverick Springs hosts a 43-101-compliant, pit-constrained mineral resource estimate reflecting an inferred resource of 3.71 million ounces of gold equivalent “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date of Oct. 19, 2022 (see news release October 20, 2022, available on SEDAR). The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which are non-core to its primary business focus. In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. The Company also has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. The Company is analyzing the non-core Nevada projects, The Dale Property and Snowbird Property for further merit of exploration, sale or spin-out. For more information about the Company, please visit www.element79.gold For corporate matters, please contact: James C. Tworek, Chief Executive Officer Email: [[email protected]](mailto:[email protected]) For investor relations inquiries, please contact: Investor Relations Department Phone: +1.613.879.9387 Email: [[email protected]](mailto:[email protected]) |
2023.03.28 19:21 MightBeneficial3302 Element79 Gold Completes Rework of Final Payment Structure for Acquisition of Nevada Portfolio (CSE: ELEM, OTC: ELMGF)
 | submitted by MightBeneficial3302 to CanadianStockExchange [link] [comments] https://preview.redd.it/5e4fkqa8miqa1.png?width=972&format=png&auto=webp&s=f5d22ffdefb0bbba64423ee9129e2f5bb3bf23fd Vancouver, British Columbia – TheNewswire - March 28, 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the “Company”) is pleased to announce it has successfully reworked the final payment structure due for the portfolio of Nevada assets that were purchased and announced on December 23, 2021. Original transaction terms Per the terms outlined in the Company’s news release of December 23, 2021, the Company paid $2,000,289.97 in cash payments and issued a total of 5,095,733 common shares on December 23. 2021. The Company further made a payment of $150,000 in 2022 to complete the “initial payment” and accounted for the final payment of CAD $2,000,000 via a Contingent Value Rights agreement (“CVR Agreement”) with Waterton Nevada Splitter, LLC (“Waterton”), with the final payment due on December 23, 2022. Updated final settlement terms As an update to the CVR Agreement, the Company has worked with Waterton to create an alternate structure. As part of the terms of the updated payment agreement, the final $2,000,000 milestone payment due will be converted into a two-year, zero-coupon debt facility with convertibility options priced at $0.15 and a 10% default interest rate. Prepayment by the Company is possible with a 60-day advance notice and paid at a 10% premium to the principal amount remaining. James Tworek, Element79 Gold’s CEO recounts: “Late last year, given the global economic conditions and overlaying market conditions for raising capital to complete this milestone payment, we proactively reached out to Waterton starting at the end of Summer to discuss alternate options. We found the discussions and negotiation processes fruitful, with Waterton being understanding the current investment climate. We feel that this solution is mutually beneficial and gives a strong vote of confidence in the Company’s share price growth potential given the conversion pricing and two-year timeline to maturity. We can close this chapter for the time being and can now focus energies on Element79’s core projects, generating revenue, and divesting of its non-core assets. About Element79 Gold Element79 Gold is a mining company focused on gold, silver and associated metals. Element79 Gold’s main focus is on two core properties: developing its previously-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to bring it back into production in the near term; and its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties. Maverick Springs hosts a 43-101-compliant, pit-constrained mineral resource estimate reflecting an inferred resource of 3.71 million ounces of gold equivalent “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date of Oct. 19, 2022 (see news release October 20, 2022, available on SEDAR). The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which are non-core to its primary business focus. In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. The Company also has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. The Company is analyzing the non-core Nevada projects, The Dale Property and Snowbird Property for further merit of exploration, sale or spin-out. For more information about the Company, please visit www.element79.gold For corporate matters, please contact: James C. Tworek, Chief Executive Officer Email: [[email protected]](mailto:[email protected]) For investor relations inquiries, please contact: Investor Relations Department Phone: +1.613.879.9387 Email: [[email protected]](mailto:[email protected]) |
2023.03.28 19:19 MightBeneficial3302 Element79 Gold Completes Rework of Final Payment Structure for Acquisition of Nevada Portfolio (CSE: ELEM, OTC: ELMGF)
 | submitted by MightBeneficial3302 to Miningstocks [link] [comments] https://preview.redd.it/82tnrv65miqa1.png?width=972&format=png&auto=webp&s=f8bac8577f8ae42e4b214cfa9a1db984afcceae2 Vancouver, British Columbia – TheNewswire - March 28, 2023 – Element79 Gold Corp (CSE:ELEM) (OTC:ELMGF) (FSE:7YS) (“Element79 Gold”, the “Company”) is pleased to announce it has successfully reworked the final payment structure due for the portfolio of Nevada assets that were purchased and announced on December 23, 2021. Original transaction terms Per the terms outlined in the Company’s news release of December 23, 2021, the Company paid $2,000,289.97 in cash payments and issued a total of 5,095,733 common shares on December 23. 2021. The Company further made a payment of $150,000 in 2022 to complete the “initial payment” and accounted for the final payment of CAD $2,000,000 via a Contingent Value Rights agreement (“CVR Agreement”) with Waterton Nevada Splitter, LLC (“Waterton”), with the final payment due on December 23, 2022. Updated final settlement terms As an update to the CVR Agreement, the Company has worked with Waterton to create an alternate structure. As part of the terms of the updated payment agreement, the final $2,000,000 milestone payment due will be converted into a two-year, zero-coupon debt facility with convertibility options priced at $0.15 and a 10% default interest rate. Prepayment by the Company is possible with a 60-day advance notice and paid at a 10% premium to the principal amount remaining. James Tworek, Element79 Gold’s CEO recounts: “Late last year, given the global economic conditions and overlaying market conditions for raising capital to complete this milestone payment, we proactively reached out to Waterton starting at the end of Summer to discuss alternate options. We found the discussions and negotiation processes fruitful, with Waterton being understanding the current investment climate. We feel that this solution is mutually beneficial and gives a strong vote of confidence in the Company’s share price growth potential given the conversion pricing and two-year timeline to maturity. We can close this chapter for the time being and can now focus energies on Element79’s core projects, generating revenue, and divesting of its non-core assets. About Element79 Gold Element79 Gold is a mining company focused on gold, silver and associated metals. Element79 Gold’s main focus is on two core properties: developing its previously-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to bring it back into production in the near term; and its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties. Maverick Springs hosts a 43-101-compliant, pit-constrained mineral resource estimate reflecting an inferred resource of 3.71 million ounces of gold equivalent “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag) with an effective date of Oct. 19, 2022 (see news release October 20, 2022, available on SEDAR). The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which are non-core to its primary business focus. In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. The Company also has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township. The Company is analyzing the non-core Nevada projects, The Dale Property and Snowbird Property for further merit of exploration, sale or spin-out. For more information about the Company, please visit www.element79.gold For corporate matters, please contact: James C. Tworek, Chief Executive Officer Email: [[email protected]](mailto:[email protected]) For investor relations inquiries, please contact: Investor Relations Department Phone: +1.613.879.9387 Email: [[email protected]](mailto:[email protected]) |
2023.03.28 19:11 Mizzno [H] Games [W] A Hat in Time, CODE VEIN, Mega Man 11, Tower Unite, Coromon, Offers
For sale, for Steam gift cards (or gifted Steam Wallet balance):
For trade:
*tentatively up for trade, assuming I buy the bundle
WANT:
IGS Rep Page: https://www.reddit.com/IGSRep/comments/ti26nz/mizznos_igs_rep_page/
submitted by Mizzno to indiegameswap [link] [comments]
- Dark Souls™: Prepare To Die™ Edition (removed from Steam Store;
$350$400 or best offer) - Fall Guys (removed from Steam Store)
- Fall Guys - Dragon Hugger Pack (removed from Steam Store)
- Fall Guys - Fast Food Costume Pack (removed from Steam Store)
- Fall Guys - Icy Adventure Pack (removed from Steam Store)
- Humble Hunie Sakura Bundle (can also trade for a full "charity" bundle (Australia Fire Relief Bundle or similar))
- Humble Sekai Project Bundle (can also trade for a full "charity" bundle (Stand with Ukraine Bundle or similar))
For trade:
- 112 Operator
- 911 Operator
- The Amazing American Circus
- Armello
- Backbone
- Calico
- Cris Tales
- Euro Truck Simulator 2
- Farming Simulator 17
- Ghostrunner
- Gotham Knights
- Guilty Gear X2 #Reload
- Lust from Beyond: M Edition
- Monaco: What's Yours Is Mine
- Orbital Racer
- Pathfinder: Kingmaker - Enhanced Plus Edition
- PAYDAY 2
- Pilgrims
- Soulblight
- Space Crew: Legendary Edition
- Starfinder Core Rulebook (Paizo key) and Starfinder Adventure: Junker's Delight (Paizo key)
- Strange Brigade
- Stygian: Reign of the Old Ones
- Sunlight
- System Shock 2
- System Shock: Enhanced Edition
- Ticket to Ride
- XCOM® 2
- X-Morph: Defense Complete Pack
- Fallout: A Post Nuclear Role Playing Game
- Fallout 76
- Fobia - St. Dinfna Hotel
- Othercide
- Shady Part of Me
- Vampire: The Masquerade - Coteries of New York
- Vampire: The Masquerade - Shadows of New York
- Werewolf: The Apocalypse — Heart of the Forest
- Baldur's Gate: Faces of Good and Evil
- Baldur's Gate: Siege of Dragonspear
- Icewind Dale: Enhanced Edition
- Day of the Tentacle Remastered
- Grim Fandango Remastered
- Star Wars: Knights of the Old Republic
- STAR WARS®: Knights of the Old Republic™ II
- Highway Blossoms
- HunieCam Studio
- KARAKARA
- Sunrider Academy
- Sunrider: Liberation Day - Captain's Edition
- The Elder Scrolls: Legends: 2 Card Packs (Skyrim) 1 Event Ticket 100 Gold 100 Souls
- ESO Vanity Pet: Bristlegut Piglet and 15 Days of ESO Plus
- Ame no Marginal -Rain Marginal-
- KARAKARA
- Memory's Dogma CODE:01
- Narcissu 10th Anniversary Anthology Project
- Narcissu 10th Anniversary Anthology Project - Season Pass
- A Kiss For the Petals - Remembering How We Met
- Sakura Angels
- Beach Bounce
- Beach Bounce - Soundtrack
- Blue Rose
- Lionessy Story
- My Personal Angel
- Natural - Beyond Nature -
- Postmen Of Horizon (removed from Steam Store)
- Koi-Koi Japan [Hanafuda playing cards]
- Mahjong Pretty Girls Battle
- Mahjong Pretty Girls Battle : School Girls Edition
- Poker Pretty Girls Battle: Texas Hold'em
- Pretty Girls Mahjong Solitaire
- Guns of Icarus Alliance
- Guns of Icarus Online
- Impossible Creatures Steam Edition
- Lethal League
- Tempest: Pirate Action RPG
- Tempest - Treasure Lands
- Tempest - Original Soundtrack
- Warhammer 40,000: Space Wolf
- Warhammer: End Times - Vermintide
- *Book of Demons
- *For The King
- PlateUp!
- Spiritfarer®: Farewell Edition
- Kingdom Two Crowns
- White Day: A Labyrinth Named School
- Warhammer 40,000: Gladius - Relics of War
- Murder by Numbers
- Chivalry: Medieval Warfare
- Steel Rats™
- Hue
- Sifu Deluxe Edition Upgrade Bundle (Epic key)
- Gal*Gun: Double Peace
- The Invisible Hours
- Synergia
- ROCKETRON
- Project Nimbus: Complete Edition
- Dead Age
- Dusk Diver 酉閃町
- Spirit Hunter: NG
- Slain: Back from Hell(?)
- Cook, Serve, Delicious!
- Tower of Time
- Danger Scavenger
- Survive the Nights
- The Beast Inside
- Valfaris
- Nongunz: Doppelganger Edition
- This War of Mine
- My Time At Portia
- 112 Operator
- 911 Operator
- Book of Demons
- Broken Age
- Brothers - A Tale of Two Sons
- Crying Suns
- Crying Suns
- Dear Esther: Landmark Edition
- Driftland: The Magic Revival
- Liberated (GOG key)
- Moon Hunters
- Out of Reach: Treasure Royale
- Ring of Pain
- Rustler (Grand Theft Horse)
- Wanderlust: Travel Stories (GOG key)
- WARSAW
- X-Morph: Defense + European Assault, Survival of the Fittest, and Last Bastion DLC (I believe this redeems as the linked Complete Pack, minus the soundtrack)
- ΔV: Rings of Saturn(?)
- Fallout: A Post Nuclear Role Playing Game
- Fobia - St. Dinfna Hotel
- Phoenix Point: Year One Edition
- Deliver Us The Moon
- Morkredd
- Rogue Heroes: Ruins of Tasos
- Space Crew: Legendary Edition
- Spirit Hunter: NG
- Survivalist: Invisible Strain
- Warhammer: Vermintide 2
- ENDLESS™ Space 2
- Surviving the Aftermath
- The Long Dark
- Fallout 76
- Othercide
- Pathfinder: Wrath of the Righteous - Enhanced Edition
- ScourgeBringer
- Ancestors: The Humankind Odyssey
- HOT WHEELS UNLEASHED™
- Middle-earth: Shadow of Mordor Game of the Year Edition
- Sonic CD (removed from Steam Store)
- LEGO® Harry Potter: Years 1-4
- LEGO® Harry Potter: Years 5-7
- STRIDER™ / ストライダー飛竜®
- Bionic Commando
- Full Metal Furies
- Ultra Street Fighter® IV
- Starbound
- Mafia III: Sign of the Times
- Outlast 2
- Dreamfall Chapters
- BioShock 2
- Middle-earth: Shadow of Mordor Game of the Year Edition
- Sherlock Holmes: The Devil's Daughter
- The Mean Greens - Plastic Warfare
- Crusaders of the Lost Idols Legendary Starter Pack
- Project CARS (removed from Steam Store)
WANT:
- 5D Chess With Multiverse Time Travel
- A Hat in Time
- Avernum: Escape from the Pit
- Bendy and the Ink Machine
- Coromon
- CODE VEIN
- CrossCode
- Dead Rising 4
- Dungreed
- Mega Man 11
- Mortal Kombat Komplete Edition
- NBA 2K Playgrounds 2
- NECROPOLIS: BRUTAL EDITION
- Omensight: Definitive Edition
- Street Fighter 30th Anniversary Collection
- Submerged
- Tower Unite
- Wonder Boy: The Dragon's Trap
IGS Rep Page: https://www.reddit.com/IGSRep/comments/ti26nz/mizznos_igs_rep_page/
2023.03.28 18:38 yumechan34 For sale! Need money for cancer treatment.
 | Hello! I am putting up some of my collection for sale. I'm in need of money for medical bills. Unfortunately I was just diagnosed with a rare form of breast cancer. I've already had to do 3 surgeries and I have another coming as well as radiation treatment plus medication. Offers are welcome. Shipping is not included and comes from MN, USA. I use pirate ship and can determine your shipping estimate with your zip code. My big boi Archie in the back is not for sale. All squish have tags and are in great condition unless otherwise stated. Please comment if you are going to dm me. submitted by yumechan34 to Squishmallowsforsale [link] [comments] Lena the guava 11"- 13$ Minya the mushroom 12"- 25$ Tank the hammerhead - thinking of keeping him but make me an offer I guess Emanga the leopard baby 7.5"- 10$ Wu the rabbit stackable - 24$ Pilar the grasshopper 8" - 9$ (2) Jakkaria the boba tea 11" - 12$ Lavada the rabbit 12" - 24$ Bruce the walrus 8" - 20$ Rayford the gnome 8" - 9$ Wyatt the watermelon 8" -8$ Ilene the unicorn baby 7.5" - 14$ Marshina the hot cocoa (small stain could be washed easily) 8" - 6$ Paco the parrot baby 7.5" - 10$ Bruce the walrus 5" - 7$ Martina the fish 5" - 5$ |
2023.03.28 18:22 Hot_Temperature_5754 HOTEL LATVIA: SELL OUT, HANG IN OR PARTNER?
In mid-2013, Amit Sandis sat back in his chair to watch the sunset, wondering what the future would hold in Latvia. Business was starting to look up, and he had a new family to take care of. They had just a few days left in their summer vacation in the Maldives before returning to Latvia to join his two co-owners in making a critical decision. Sandis, together with his two best friends, had, in 2002, followed an entrepreneurial dream to build a five-star hotel in the cultural centre of one of Latvia’s top seaside cities, Liepaja. To achieve that dream, the three co-owners had negotiated and survived many challenges over the past decade.
After several early years of confidence and profit, the co-owners had spent the past five years struggling, due to the massive downturn in the Latvian economy, as a result of the European Union (EU) financial crisis and subsequent slow recovery. Since the crisis began, the business had declined from generating an annual profit to its present situation of making a loss or just breaking even. Now, however, the EU was showing signs of recovery, business confidence was returning, bookings were recovering and income generation was starting to look up. The co-owners’ frustration with the situation in recent years had at times been so bad that on several occasions they had spoken about selling the business while they could still break even. Now the question confronting them was whether they should put all their struggles behind them, retain the ownership of the hotel and look forward to enjoying the potential days of profit that lay ahead. With these questions on his mind, Sandis thought about the meeting he had planned in a week’s time with his two partners in Latvia. Many variables needed to be weighed before they decided on the strategic direction they should take. The co-owners were his two best friends, and they had spent many years working together.
BACKGROUND
In Latvia, the winter temperatures fluctuate between –25 and –2 degrees Celsius; and during the daytime, it is grey and dark after 4 p.m. Because of this climate, observers often say the Latvian people can, at times, seem a little depressed and not so joyous or communicative, compared with those in southern Europe. For those who live in warmer Mediterranean climates with year-round sunshine, life appears comparatively more relaxed and carefree. Because of Latvia’s northern location, in the winter, Latvians go to work in the dark and when they finish work, they return home in the dark. The long cold winter stretches from November to April. In contrast, Latvia’s climate from May to October is delightful.
Sandis spent 25 years working as a high-ranking city official in Latvia during what he described as “the good times under Soviet control,” when Latvia enjoyed high levels of employment, productive manufacturing plants and very little corruption due to the tight security and military and police control. Even though wages were low, most Latvian people led simple lives and were happy.
Not long after 1991, when Latvia gained independence from the Soviet Union, discussions commenced toward it becoming a member of the EU. From then onward, most of the Soviet-backed manufacturing plants began closing down, unemployment increased, uncontrolled corruption grew and the country’s gross domestic product dropped significantly. Many security professionals and soldiers who had worked for the Soviets no longer had a job, which led to a new industry of private protection and security services, although some of those involved had questionable standards of corporate governance.
With independence, Latvians started looking forward to a new-found freedom. The Latvian people felt excitement and confidence in the media and in government officials promoting successful growth. Celebrating their new independence, the Latvian politicians were riding the wave of popularity. However, Sandis had worked in a government facility and had an insider’s view of how these elected representatives really operated. He felt that most of them worked hard only near an election, but after the election was over, their overall priority was to make money. Sandis’s long-term experience led him to conclude that when an election was coming, government leaders would show great care for the public, make unrealistic statements about positive strategies for the future but after they had been re-elected, they often forgot most of the promises they had made.
After more than two decades working as part of the Soviet security establishment in Latvia prior to 2001, Sandis and his colleagues, Johachim Kaspars and Kemat Valdis, had developed strong bonds, friendships and acquaintances with many powerful government and military officials, some of whom were in high office. They had also endured many years working under tough conditions and were now ready to try to do some private business of their own. Their belief and research had heightened their expectation that tourism was likely to grow in Latvia, as the country became a full member of the EU. In addition, all economic indicators suggested the demand for tourism facilities and accommodation was likely to grow. After long hours of discussion and consideration, the three former Soviet servants were confident that collectively they had now accumulated enough money and trusting relationships with bankers to be successful in realizing their dream of building a five-star hotel in the centre of Liepaja, Latvia’s resort and seaport city.
Politically, the relationship between Latvia and the EU was also evolving. Sandis, Kaspars and Valdis felt that the enthusiasm and the West’s growing confidence in the Latvian business environment made it the right time to invest in the hotel industry. With good planning and management, they were confident of success at a time when the Latvian economy was entering a period of expected growth.
The co-owners registered their new business in the Latvian Official Company Register for €200s, and their application was approved after they had established their company bank account containing a minimum deposit of €3000s. Their first taste of what lay ahead was the realization that, at that time,
running a company in Latvia meant an almost constant need to satisfy the demands of the Revenue Service (RS).
In what seemed to be an after-effect from the Soviet era, Latvia company bookkeepers and accountants devoted a large portion of their daily work time to ensuring their company was complying with RS rules. At times, this task proved to be all encompassing and an unwanted difficulty as the RS decision makers were prone to making changes to the countries taxation rules on very short notice. As Kaspars lamented, “Such legalistic changes were liable to happen up to 200 times during any given year.”
Another complication was that when the RS changed a taxation rule or created a new rule, companies were not given any standard period of time to adjust but were expected to immediately correctly implement and abide by the new law or rule. Tax rates and taxable items were constantly changing, which led to complaints among members of the business community. But it made no difference to the RS officials, as they exercised total control and were not afraid to use their power. Unless one had a strong relationship with an RS insider, these government tax officials were rarely prepared to listen to any complaints. Consequently, company bookkeepers were under constant pressure to keep up to date. They needed to constantly be on the lookout for RS Information Releases and continually consulted their RS contacts and communication networks so they could implement any given changes in a timely manner. Complicating the matter further was that the RS sometimes gave only minimal directions and explanations on how new rules and laws should be correctly interpreted and implemented. The lucidity and interpretations of the changes could vary greatly, and the RS would not hesitate to impose a fine on any company found applying the new rules in an incorrect manner.
Although Latvia was now a part of the EU, the senior RS officials had spent all of their working life operating under the Soviet system. They knew no other way and were reluctant to change or respond to training. Their type of communication, thinking, behaviour, management and work environment continued to exhibit characteristics from their Soviet past, when the USSR (Union of Soviet Socialist Republics) had previously controlled Latvia, Lithuania, Ukraine and Estonia, countries whose people had followed the socialist philosophy of Marx, Engels and Lenin. Most people holding senior positions in the Latvian RS had started working there when Latvia had no private companies, restaurants, shops or hotels, and everything was owned by the state and operated under the Soviet socialist philosophy. In those times, private ownership was banned, and people had to prove they could work hard, be honest and share communal facilities. The general public had little power to make their own decisions regarding how much they were able to spend or what they would spend it on. The buying choices were usually narrow (e.g., only three types of car could be purchased — if anyone could afford one), and the socialist ideology promoted the philosophy that owning any property was bad and that capitalism only exploited working people.
Latvians thus experienced a significantly different style of thinking and government from the norm for people in the EU and Western market economies. After Latvia gained independence, change was initially slow. A significant period of time passed before senior government officials and employees, long entrenched in government positions under Soviet conditions, chose to retire or to adjust their thinking toward the characteristics of the EU market economy. Latvia had supposedly become an open-market economy, and many new emerging entrepreneurs who had worked hard to become successful now enjoyed the fruits of a market economy. These successful businesspeople could afford to own a modern car and a private house, yet they were still being made to feel guilty under the former Soviet ideology. As Sandis explained:
If you were making money, the members of older generations made you feel like you had robbed somebody or you had stolen something and they were usually angry with successful modern business people. Sometimes they would say it to your face that they “are so angry with you being successful and making money, driving a Mercedes and having a nice place to live” even though you may have worked hard to get all of these material things. Some of my friends in Latvia got so tired of this attitude that they decided to sell their business, sell all of their possessions and leave the country. These successful people were paying a lot of tax and the older generations working in the government offices didn’t understand that their salaries come from these taxes. My colleague who had worked in the Revenue Service from the middle of the 1990s started telling me that the biggest taxpayers were the bureaucrats. I had to stop him and say that “I’m sorry my friend, the source of your salary and the bureaucrats is from taxation charged on private businesses.” This was the way the older generation that grew up under the Soviet rule continued to think although small changes are slowly taking place and it is starting to become a little bit easier for successful modern business people in society. Many of my friends, even from outside Latvia, believed it would take two generations for this attitude and type of thinking to be fully eroded and perhaps gone. Now we are trying to explain this new concept to the 40-, 50- and 60- year-old employees that worked in the Revenue Service or Finance Police Department all their lives under the Soviet control.
Latvia became independent in 1991 and immediately after fell into a deep crisis. Jobs, money and opportunities dried up, and by 2000, many skilled people were leaving Latvia to seek a job abroad. They would try to find a job in another EU country, then save some money and later return to Latvia to buy a flat and maybe set up a business to improve their living conditions.
Introducing Latvia into a market economy had led to many problems, and the average workers were the people who suffered in the long term. The Latvian government was not ready for this change and took no action to avoid a significant banking crisis that was incubating due to its vague transition strategy and questionable governance. The banking crisis began not long after Latvia had been granted independence from the Soviet Union and the commencement of its new membership in the EU. Under the new EU policy and conditions, banking officials responsible for granting loans started being paid bonuses on the amount of money they could loan, not on the ability of borrowers to realistically repay the loans. This approach was a complete change in policy from the former Soviet banking environment; as a result, Latvian loan officials soon realized their opportunity and started to take advantage of the situation by approving loans much too easily, without conducting due diligence on prospective borrowers. As a result, borrowing money became much easier, and credibility checks on those applying for loans were often questionable and minimal. Bank officials were taking the opportunity to make more money than ever before and were unconcerned with the ability of borrowers to actually make repayments or repay their loans in full. The bank officials’ main motivator was the commission they would be paid, based on the size of the loan.
When Sandis, Kaspars and Valdis decided to pursue their Hotel Latvia dream, they had been unaware of any of these developing credit problems or the difficulties they could create for their new venture in the future. Feeling confident, they made a request to the bank for a loan of €22 million in 2002, and were surprised as to how easy it was to gain approval.
Sandis explained:
When we gained the €22 million loan to finance building our hotel, our bankers were coming and asking “Why did you take only this amount? Why don’t you take more?” We said, “We don’t need more. What we have been loaned is enough.” We didn’t know the bank officers responsible for providing the credit would get bonuses from the amount of money they loaned to the people. Their checking and due diligence was almost non-existent and they were not even asking for credit records or proof of income. Instead they were asking questions like, “If you need more money or a new car then why don’t you take a bigger loan?”
Prior to purchasing the land on which they would build their hotel, Sandis, Kaspars and Valdis had first built one large apartment building in the central historical area of Riga, the Latvian capital, as a test case to provide them with the opportunity to measure the market, gain some experience in the real estate market, develop a better understanding of the construction industry and begin to generate some income while their larger project was developing. Enjoying success on this first smaller project saw their confidence grow toward the construction of their much larger Hotel Latvia complex. With their larger loan secured, the Hotel Latvia project started in 2002, when Sandis, Kaspars and Valdis identified, researched and purchased land in the centre of Liepaja, Latvia’s resort and seaport city. They wanted to build the hotel in the old part of the city, as it was in a central location, which would be attractive for customers. Because of the location, they expected they could charge slightly higher rates when serving their target markets of businesspeople and tourists who expected quality facilities. In preparing to build, they needed to remove from the existing site the remains of a few old decaying structures that were in serious danger of collapsing. They thought it would be easy to clear and start construction soon after; however, gaining the approvals to demolish these old ruins for their much larger project proved to be significantly more complicated. In a frustrated tone, Kaspars recalled the situation:
You could not imagine the politics involved when you want to build something in the historical part of Liepaja. On the proposed Hotel Latvia site we had purchased, there were several crumbling down and neglected ruins that had no official status or any conditions existing on them saying that “they needed to be restored.” The buildings were totally ruined and we had proceeded to commission three private, official, independent assessments of the proposed site that all concluded they were impossible to restore and that the only safe action to take would be to demolish them. These on-site ruins were in danger of collapse at any moment. However, despite this evidence, the government said there is no possibility that we could demolish them and build something new in the historical part of the city.
To try to change the decision we had to arrange several meetings with several politicians and government officials to get approvals from their respective departments to undertake the construction. It was a big headache to get all of these approvals. Although we could demolish most of the buildings the government departments informed us that each of the front facades of the ruins had to be restored. As a condition of the approval, we had to pay all restoration costs. Another building company we knew who were building in a nearby city also had problems and were not allowed to demolish even one wall of an old decaying building on their site even though it had large cracks in the building and the façade was not even traditional. The one they wanted to demolish was a very ordinary building with no historical value. On one occasion they were officially granted permission from the Architectural Authority to proceed with the demolition at 10 a.m. and then later on the same day at 11.45 a.m. received a second notification from another department saying that “permission to demolish it had been refused.” Today, this building still remains untouched in the centre of the city. Unfortunately, we learned of their experience well after we had begun our building process.
In Latvia’s new market economy, the officials who granted permissions were taking advantage of their newfound power. For businesses to gain any kind of documented approval, they now had to offer the officials something extra to get their signature of approval. Many approvals could not be completed by dealing directly with the officials responsible but had to be done through networks of connections. Valdis was frustrated and threw his arms in the air, stating “You had to use somebody who knows somebody who knows somebody.” Before Sandis, Kaspars and Valdis could even consider beginning construction, much more time was wasted and “under-the-table” fees needed to be paid to a portfolio of connections. Then, after construction had commenced, if the authorities wanted to stop the process to extract some additional favours, they could always find a mechanism whereby someone could complain and put a halt to everything. So, in total, it took the group several years to get all of the approvals to actually go ahead and commence the building construction.
When construction of Hotel Latvia finally commenced, a new problem confronted Sandis, Kaspars and Valdis. The builders and construction employees knew demand on construction services was vastly outstripping the current supply in Latvia, as only a limited number of building companies could build such large structures. As a result, the pressure on at the worksite was always intense, and the co-owners looked at using three builders to carry out the construction. If the builders arrived in the morning to commence the day’s work and if all of the materials or equipment were not there, or if some problem prevented them from starting immediately, then the builders would pack up and head off to work on another site. When this happened, the disruption resulted in the builders having to return later, and the price of construction would increase. This interruption in the schedule also resulted in frustrating delays; sometimes the builders would not return for several days. The hotel was a big project, and in the end, Valdis had to spend every day at the worksite to supervise the building company’s employees and ensure they were working. If no building company supervisor was present on the worksite, then the employees would often not work to capacity, significantly reducing their productivity. The construction companies knew that they were in a strong bargaining position. Sandis, Kaspars and Valdis were in a tough situation, as Latvia had too many buildings under construction, most were only partly completed and Latvia lacked a sufficient number of companies that were competent enough to do all the construction.
Valdis reflected:
We had a separate contract with a German company to do all the installations on the ground floor comprising the hotel’s entry, front desk area, bar and all the other features and facilities. They did a quality job and did it very quickly. The local Latvian builders were working on another part of the hotel at the same time, and the German builders had commented how at times the Latvian builders could not be found, were smoking outside or just sitting around doing nothing. In the end, I had to go to the site every day to supervise their work for the last four months including on the weekends, from the morning to the evening. Sometimes we had to threaten the builders to make sure they were doing their job because they took short cuts, time off or left to work on other building sites.
The German building company had designed the hotel and brought with them all of the materials to complete the entrance hall, and another German company came to install all of the lamps in the hotel. The German lighting employees were professional and efficient, and it took only three employees to complete the job in three days. For the Latvian construction companies, progress was much slower. After having to apply constant pressure on them to keep working effectively, the construction of the hotel was finally completed in one and a half years.
Finding the talented employees to staff the hotel was another issue. A large number of applications were received; however, finding the right standard and quality of employee suitable to staff this five-star operation required intense interviewing and a comprehensive training program.
The Hotel Latvia finally opened in 2006, and business started well. The hotel’s initial marketing campaign was successful: after six months of business, it was performing better than its competitors but was still not generating enough income to meet the co-owners’ strategic target. In the first two years, they generated enough income to service their loan but sometimes needed to contribute their own money to meet the repayments. Some adjustments were necessary, and halfway through their second year of operation, they sold their initial trial investment in Riga and asked the bank to deposit the funds from the sale into an offset account to reduce the interest being paid on the loan.
By the third year, Sandis, Kaspars and Valdis had also renegotiated an increase in the term of their loan from 20 years to 25 years, with the goal of reducing their repayments and, thus, the level of financial pressure. This strategy helped them to adjust to the change in market conditions and encouraged the untried entrepreneurs to become more contingent. Following the 2008 financial crisis, the level of tourism declined sharply in Latvia in 2009 and 2010. By then, due to the significant drop in tourist numbers, the co-owners were generating only 60 per cent of the revenue required to meet their business target.
To try to cope with the downturn in bookings and reduction in income generation, they needed to make some strategic changes. These changes included downsizing the staff by 18 per cent, closing one of the guest floors, eliminating one of the elevators to reduce power costs and opening their five-star restaurants only on weekends.
During the downturn, not only did individual people stop travelling but companies, government and universities stopped holding conferences and/or reduced the number of delegates they were sending to conferences. These changes resulted both in universities, governments and associations reducing their number of conferences and in many existing industry conferences significantly decreasing their budgets.
Said Sandis:
We had many solid and developing contracts for annual conferences and tours but at the beginning of 2009 there were many cancellations and a sharp drop off in group tours and individuals coming to stay at the Hotel.
At about this time a Dutch professor I knew came to Latvia for a short term on foreign exchange to give some lectures and organize some student exchanges. After a time, he told me he believed a high percentage of the Latvian university students will leave Latvia for Germany and other countries after they graduate. Although he was a foreigner, he was worried about the situation in our country. He believed the IMF [International Monetary Fund] had made a mistake to place such heavy austerity measures on Latvia and it had created a very bad situation that would be difficult to recover from. Although it was not openly reported in the Western press, Latvia was in trouble much earlier than Spain, Greece and Italy with their gross domestic product declining by 18 per cent in 2009. Most of the decline was in construction because, during the preceding period of steady growth, the real estate and construction sectors grew out of control and too many buildings were built for the demand at that time. This had resulted in the problem of an oversupply of rooms in the hotel sector.
Eventually, the Latvian economy collapsed, real estate prices declined, companies and many individuals holding loans went bankrupt, salaries decreased by 30 to 40 per cent, and many people lost their jobs with unemployment rising significantly. The government was in financial difficulty and could afford to pay people who had been retrenched only a small percentage of their promised redundancy or unemployment payments. Even worse was that the government’s unemployment financial assistance following redundancy usually lasted only nine months; and when these payments ceased, the unemployed persons had to take care of themselves.
The downturn delivered to Latvia a market economy reality check that very few people who had lived under Soviet control could predict, understand or imagine. Huge excesses had occurred at the beginning of the growth phase in 2002, when bankers and financiers had enjoyed considerable wealth, and they now had to be paid for. Not conducting the required due diligence on those who wanted to borrow the money when times were good and giving out poorly backed or unsupported loans was now having a severe and adverse effect on the Latvian economy.
Sandis, Kaspars and Valdis had worked hard and had built their hotel from the ground up during the peak in construction activity; as a result, their construction costs had been higher than expected. After the slowdown, business did not run according to their expectations and, like many others, they were in a difficult situation regarding loan repayments to the bank. Many people had taken out large bank loans and mortgaged everything, including their homes, to ride the boom. After the downturn, many companies went bankrupt, were taken over by the banks or closed down because they could not afford to make the repayments. Most were overexposed with too much debt and no liquidity to make the repayments. Although this situation was happening throughout Latvia, Sandis, Kaspars and Valdis still had the liquidity to continue making repayments, though their strategic options were severely reduced.
Due to their tight fiscal management, the three Hotel Latvia owners did not have to sell the hotel but began to consider whether they should get out while they were still able to break even. They realized that to go on trying to make money from the hotel would be hard work, and the venture had not delivered their expected outcome. They started wondering about their future risk on the amount of return they could generate. Were the hardest times over, meaning it would now be a mistake to sell? Solving all the approval problems during the years of construction had taken its toll, and with the building problems and increase in costs, it appeared that if they sold now, they could make a zero net gain in value on their decade of hard work and investment. At another time, the outcome would have been very profitable; however, the business environment following Latvia’s entry into the EU had taken its toll on and had disadvantaged Sandis, Kaspars and Valdis, as a result of a tough combination of factors: the Latvian people’s slow adaptation to the evolving market economy, corrupt bankers and government officials, building contractors taking advantage of the excess demand in the construction industry and the sudden economical crash.
Despite their situation, their bank was not currently concerned about their financial situation and was not putting pressure on them to liquidate their property or make any extra repayments on their loan. The bank had many other poorer performing loans and associated issues to worry about and its main concern was the number of its bad loans. Many lenders owed their banks substantial amounts of money, and many companies found themselves overextended and facing bankruptcy.
Valdis expressed his concern:
When we saw some good businesses being taken over by the banks without warning or with very short notice, we became concerned. We anticipated we may have to sell the hotel not long after it was completed because the cost of construction had gone 18 per cent over budget and, as a result, our monthly repayments and period of the loan had both grown significantly. Our business had started so well we thought the future would be profitable. Following the EU crash, it appeared some type of recovery had started and we thought there may be an opportunity to sell it in 2012 as Latvia’s credit and investment ratings proposed by the International Rating Agency, Standard and Poor’s, were improving and looking better.
But another serious problem was looming in the hotel sector. Latvia’s average price per room had dropped sharply because many hoteliers were in deep trouble and had started slashing their prices because they were located in less marketable locations. One example was the Reval Hotel that boasted 240 rooms in suburban Riga. Facing very poor occupancy, the operator in charge had suddenly slashed prices and had begun to sell rooms to large groups of tours at prices that were so low that they decimated the whole market. Once the Reval Hotel owners found out what their managers were doing, they immediately dismissed them and changed their operator but it was too late. For the rest of the market, the damage had already been done through the reductions in their bookings and through agents and customers who were no longer prepared to pay the former prices.
This incident happened at a critical time, when Sandis, Kaspars and Valdis were considering searching for a new partner to purchase 30 per cent of the hotel, in an effort to help reduce their loan pressure. Ideally, they needed a partner who had the cash to buy a portion of the property, and then the co-owners could use the money generated to offset or repay a larger part of the loan and thereby reduce their debt. With a fourth partner joining the group, it would have made it significantly easier to survive but after the Reval Hotel had slashed its prices, that option was no longer possible. The unpredictable situation drove away all potential buyers; they were afraid to invest and had decided to wait until the situation improved. Kaspars’s connections in a different bank informed him that the financial markets did not know what the situation may be for the future in Latvia, and much doubt surrounded the industry and marketplace. Some price targeting had broken out from time to time, and the reduced number of customers who required accommodation in Latvia were enjoying quality deals.
Upon reflection, compared with most of the businesses at that time, Sandis, Kaspars and Valdis were among the lucky ones. Despite their many problems, they still believed that, if necessary, they could still sell their hotel, pay off their debt and get out without losing money. Looking at the market around them, they saw many others lose everything; gone was the confidence that had existed before the crisis. Wisely, they had made sure they had mortgaged only the property on which the hotel was being built; none of their own private dwellings were included as part of their collateral on their original €22 million loan.
The Hotel Latvia was built on a prime piece of land in coastal Liepaja, so it retained most of its value following the crisis and did not decrease by in real estate value as much as other properties further from the centre of the city or in less marketable locations. As time wore on, many competitors disappeared completely. Those that had managed to survive had experienced significant decreases in income. At the beginning of 2012, Sandis, Kaspars and Valdis again commenced negotiations with a large global finance company based in London in an attempt to sell the hotel. They found that from 2008 to 2011, the sale price of the hotel had decreased by approximately 35 per cent. Their agents had tried selling the Hotel Latvia to different investment companies, and their responses had initially been positive. However, when investors saw the predicted future of Latvia and its poor credit and investment ratings, the buyers’ interest had ceased, and it was difficult for the agents to generate any serious interest.
Selling agents would tell us, “We know you guys have a good hotel but the country is no good. The climate for business and investment is poor and the future is not good.”
In the seven years following the boom that had begun in 2002, most of the surge in business activity, income generation and increases in prices had been in the construction industry. As a result, when the decline hit the construction companies, the support industries and related jobs were the worst affected. Only when the credit and investment ratings began to rise a few points in early 2013 did any purchasers begin to show any real interest in buying the hotel. Western investors were becoming interested again but their offers were still much below what the co-owners considered to be an acceptable price.
As Sandis explained:
They all came with the idea that they could buy our hotel for what we describe as “sandwiches.” I mean, for a very cheap price, and we thought they really wanted to buy it for nothing. The poor prices and demand were as a result of the construction bubble throughout Europe. Believe me, the politicians and bureaucrats could see it coming long before the crisis arrived but they did nothing because they were all set to make a lot of money out of it.
By the beginning of 2013, a slight recovery had begun, especially with the number of Russian tourists again beginning to grow. To Russian tourists, Latvia was now being marketed as an EU country and hence an international destination. In addition, rumours had begun that the EU was beginning to emerge from the recession, and that the steep austerity measures currently imposed at the time were soon to be eased.
Sandis, Kaspars and Valdis were at the point where they now had three options. One was to keep the hotel and continue working hard to enjoy the fruits of the supposed upturn that appeared to be commencing. The second option was to now find another partner to purchase a share in the company and to use this money to reduce their debt repayments and risk. Their third option was to sell the hotel completely and walk away with approximately the same amount of funds they had started with in 2002. Were there any other options?
Sandis knew the meeting with Valdis and Kaspars would occur on the evening after his return to Liepaja. He sat in the chair in his bungalow on the Maldives and wondered what they should do.
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In mid-2013, Amit Sandis sat back in his chair to watch the sunset, wondering what the future would hold in Latvia. Business was starting to look up, and he had a new family to take care of. They had just a few days left in their summer vacation in the Maldives before returning to Latvia to join his two co-owners in making a critical decision. Sandis, together with his two best friends, had, in 2002, followed an entrepreneurial dream to build a five-star hotel in the cultural centre of one of Latvia’s top seaside cities, Liepaja. To achieve that dream, the three co-owners had negotiated and survived many challenges over the past decade.
After several early years of confidence and profit, the co-owners had spent the past five years struggling, due to the massive downturn in the Latvian economy, as a result of the European Union (EU) financial crisis and subsequent slow recovery. Since the crisis began, the business had declined from generating an annual profit to its present situation of making a loss or just breaking even. Now, however, the EU was showing signs of recovery, business confidence was returning, bookings were recovering and income generation was starting to look up. The co-owners’ frustration with the situation in recent years had at times been so bad that on several occasions they had spoken about selling the business while they could still break even. Now the question confronting them was whether they should put all their struggles behind them, retain the ownership of the hotel and look forward to enjoying the potential days of profit that lay ahead. With these questions on his mind, Sandis thought about the meeting he had planned in a week’s time with his two partners in Latvia. Many variables needed to be weighed before they decided on the strategic direction they should take. The co-owners were his two best friends, and they had spent many years working together.
BACKGROUND
In Latvia, the winter temperatures fluctuate between –25 and –2 degrees Celsius; and during the daytime, it is grey and dark after 4 p.m. Because of this climate, observers often say the Latvian people can, at times, seem a little depressed and not so joyous or communicative, compared with those in southern Europe. For those who live in warmer Mediterranean climates with year-round sunshine, life appears comparatively more relaxed and carefree. Because of Latvia’s northern location, in the winter, Latvians go to work in the dark and when they finish work, they return home in the dark. The long cold winter stretches from November to April. In contrast, Latvia’s climate from May to October is delightful.
Sandis spent 25 years working as a high-ranking city official in Latvia during what he described as “the good times under Soviet control,” when Latvia enjoyed high levels of employment, productive manufacturing plants and very little corruption due to the tight security and military and police control. Even though wages were low, most Latvian people led simple lives and were happy.
Not long after 1991, when Latvia gained independence from the Soviet Union, discussions commenced toward it becoming a member of the EU. From then onward, most of the Soviet-backed manufacturing plants began closing down, unemployment increased, uncontrolled corruption grew and the country’s gross domestic product dropped significantly. Many security professionals and soldiers who had worked for the Soviets no longer had a job, which led to a new industry of private protection and security services, although some of those involved had questionable standards of corporate governance.
With independence, Latvians started looking forward to a new-found freedom. The Latvian people felt excitement and confidence in the media and in government officials promoting successful growth. Celebrating their new independence, the Latvian politicians were riding the wave of popularity. However, Sandis had worked in a government facility and had an insider’s view of how these elected representatives really operated. He felt that most of them worked hard only near an election, but after the election was over, their overall priority was to make money. Sandis’s long-term experience led him to conclude that when an election was coming, government leaders would show great care for the public, make unrealistic statements about positive strategies for the future but after they had been re-elected, they often forgot most of the promises they had made.
After more than two decades working as part of the Soviet security establishment in Latvia prior to 2001, Sandis and his colleagues, Johachim Kaspars and Kemat Valdis, had developed strong bonds, friendships and acquaintances with many powerful government and military officials, some of whom were in high office. They had also endured many years working under tough conditions and were now ready to try to do some private business of their own. Their belief and research had heightened their expectation that tourism was likely to grow in Latvia, as the country became a full member of the EU. In addition, all economic indicators suggested the demand for tourism facilities and accommodation was likely to grow. After long hours of discussion and consideration, the three former Soviet servants were confident that collectively they had now accumulated enough money and trusting relationships with bankers to be successful in realizing their dream of building a five-star hotel in the centre of Liepaja, Latvia’s resort and seaport city.
Politically, the relationship between Latvia and the EU was also evolving. Sandis, Kaspars and Valdis felt that the enthusiasm and the West’s growing confidence in the Latvian business environment made it the right time to invest in the hotel industry. With good planning and management, they were confident of success at a time when the Latvian economy was entering a period of expected growth.
The co-owners registered their new business in the Latvian Official Company Register for €200s, and their application was approved after they had established their company bank account containing a minimum deposit of €3000s. Their first taste of what lay ahead was the realization that, at that time,
running a company in Latvia meant an almost constant need to satisfy the demands of the Revenue Service (RS).
In what seemed to be an after-effect from the Soviet era, Latvia company bookkeepers and accountants devoted a large portion of their daily work time to ensuring their company was complying with RS rules. At times, this task proved to be all encompassing and an unwanted difficulty as the RS decision makers were prone to making changes to the countries taxation rules on very short notice. As Kaspars lamented, “Such legalistic changes were liable to happen up to 200 times during any given year.”
Another complication was that when the RS changed a taxation rule or created a new rule, companies were not given any standard period of time to adjust but were expected to immediately correctly implement and abide by the new law or rule. Tax rates and taxable items were constantly changing, which led to complaints among members of the business community. But it made no difference to the RS officials, as they exercised total control and were not afraid to use their power. Unless one had a strong relationship with an RS insider, these government tax officials were rarely prepared to listen to any complaints. Consequently, company bookkeepers were under constant pressure to keep up to date. They needed to constantly be on the lookout for RS Information Releases and continually consulted their RS contacts and communication networks so they could implement any given changes in a timely manner. Complicating the matter further was that the RS sometimes gave only minimal directions and explanations on how new rules and laws should be correctly interpreted and implemented. The lucidity and interpretations of the changes could vary greatly, and the RS would not hesitate to impose a fine on any company found applying the new rules in an incorrect manner.
Although Latvia was now a part of the EU, the senior RS officials had spent all of their working life operating under the Soviet system. They knew no other way and were reluctant to change or respond to training. Their type of communication, thinking, behaviour, management and work environment continued to exhibit characteristics from their Soviet past, when the USSR (Union of Soviet Socialist Republics) had previously controlled Latvia, Lithuania, Ukraine and Estonia, countries whose people had followed the socialist philosophy of Marx, Engels and Lenin. Most people holding senior positions in the Latvian RS had started working there when Latvia had no private companies, restaurants, shops or hotels, and everything was owned by the state and operated under the Soviet socialist philosophy. In those times, private ownership was banned, and people had to prove they could work hard, be honest and share communal facilities. The general public had little power to make their own decisions regarding how much they were able to spend or what they would spend it on. The buying choices were usually narrow (e.g., only three types of car could be purchased — if anyone could afford one), and the socialist ideology promoted the philosophy that owning any property was bad and that capitalism only exploited working people.
Latvians thus experienced a significantly different style of thinking and government from the norm for people in the EU and Western market economies. After Latvia gained independence, change was initially slow. A significant period of time passed before senior government officials and employees, long entrenched in government positions under Soviet conditions, chose to retire or to adjust their thinking toward the characteristics of the EU market economy. Latvia had supposedly become an open-market economy, and many new emerging entrepreneurs who had worked hard to become successful now enjoyed the fruits of a market economy. These successful businesspeople could afford to own a modern car and a private house, yet they were still being made to feel guilty under the former Soviet ideology. As Sandis explained:
If you were making money, the members of older generations made you feel like you had robbed somebody or you had stolen something and they were usually angry with successful modern business people. Sometimes they would say it to your face that they “are so angry with you being successful and making money, driving a Mercedes and having a nice place to live” even though you may have worked hard to get all of these material things. Some of my friends in Latvia got so tired of this attitude that they decided to sell their business, sell all of their possessions and leave the country. These successful people were paying a lot of tax and the older generations working in the government offices didn’t understand that their salaries come from these taxes. My colleague who had worked in the Revenue Service from the middle of the 1990s started telling me that the biggest taxpayers were the bureaucrats. I had to stop him and say that “I’m sorry my friend, the source of your salary and the bureaucrats is from taxation charged on private businesses.” This was the way the older generation that grew up under the Soviet rule continued to think although small changes are slowly taking place and it is starting to become a little bit easier for successful modern business people in society. Many of my friends, even from outside Latvia, believed it would take two generations for this attitude and type of thinking to be fully eroded and perhaps gone. Now we are trying to explain this new concept to the 40-, 50- and 60- year-old employees that worked in the Revenue Service or Finance Police Department all their lives under the Soviet control.
Latvia became independent in 1991 and immediately after fell into a deep crisis. Jobs, money and opportunities dried up, and by 2000, many skilled people were leaving Latvia to seek a job abroad. They would try to find a job in another EU country, then save some money and later return to Latvia to buy a flat and maybe set up a business to improve their living conditions.
Introducing Latvia into a market economy had led to many problems, and the average workers were the people who suffered in the long term. The Latvian government was not ready for this change and took no action to avoid a significant banking crisis that was incubating due to its vague transition strategy and questionable governance. The banking crisis began not long after Latvia had been granted independence from the Soviet Union and the commencement of its new membership in the EU. Under the new EU policy and conditions, banking officials responsible for granting loans started being paid bonuses on the amount of money they could loan, not on the ability of borrowers to realistically repay the loans. This approach was a complete change in policy from the former Soviet banking environment; as a result, Latvian loan officials soon realized their opportunity and started to take advantage of the situation by approving loans much too easily, without conducting due diligence on prospective borrowers. As a result, borrowing money became much easier, and credibility checks on those applying for loans were often questionable and minimal. Bank officials were taking the opportunity to make more money than ever before and were unconcerned with the ability of borrowers to actually make repayments or repay their loans in full. The bank officials’ main motivator was the commission they would be paid, based on the size of the loan.
When Sandis, Kaspars and Valdis decided to pursue their Hotel Latvia dream, they had been unaware of any of these developing credit problems or the difficulties they could create for their new venture in the future. Feeling confident, they made a request to the bank for a loan of €22 million in 2002, and were surprised as to how easy it was to gain approval.
Sandis explained:
When we gained the €22 million loan to finance building our hotel, our bankers were coming and asking “Why did you take only this amount? Why don’t you take more?” We said, “We don’t need more. What we have been loaned is enough.” We didn’t know the bank officers responsible for providing the credit would get bonuses from the amount of money they loaned to the people. Their checking and due diligence was almost non-existent and they were not even asking for credit records or proof of income. Instead they were asking questions like, “If you need more money or a new car then why don’t you take a bigger loan?”
Prior to purchasing the land on which they would build their hotel, Sandis, Kaspars and Valdis had first built one large apartment building in the central historical area of Riga, the Latvian capital, as a test case to provide them with the opportunity to measure the market, gain some experience in the real estate market, develop a better understanding of the construction industry and begin to generate some income while their larger project was developing. Enjoying success on this first smaller project saw their confidence grow toward the construction of their much larger Hotel Latvia complex. With their larger loan secured, the Hotel Latvia project started in 2002, when Sandis, Kaspars and Valdis identified, researched and purchased land in the centre of Liepaja, Latvia’s resort and seaport city. They wanted to build the hotel in the old part of the city, as it was in a central location, which would be attractive for customers. Because of the location, they expected they could charge slightly higher rates when serving their target markets of businesspeople and tourists who expected quality facilities. In preparing to build, they needed to remove from the existing site the remains of a few old decaying structures that were in serious danger of collapsing. They thought it would be easy to clear and start construction soon after; however, gaining the approvals to demolish these old ruins for their much larger project proved to be significantly more complicated. In a frustrated tone, Kaspars recalled the situation:
You could not imagine the politics involved when you want to build something in the historical part of Liepaja. On the proposed Hotel Latvia site we had purchased, there were several crumbling down and neglected ruins that had no official status or any conditions existing on them saying that “they needed to be restored.” The buildings were totally ruined and we had proceeded to commission three private, official, independent assessments of the proposed site that all concluded they were impossible to restore and that the only safe action to take would be to demolish them. These on-site ruins were in danger of collapse at any moment. However, despite this evidence, the government said there is no possibility that we could demolish them and build something new in the historical part of the city.
To try to change the decision we had to arrange several meetings with several politicians and government officials to get approvals from their respective departments to undertake the construction. It was a big headache to get all of these approvals. Although we could demolish most of the buildings the government departments informed us that each of the front facades of the ruins had to be restored. As a condition of the approval, we had to pay all restoration costs. Another building company we knew who were building in a nearby city also had problems and were not allowed to demolish even one wall of an old decaying building on their site even though it had large cracks in the building and the façade was not even traditional. The one they wanted to demolish was a very ordinary building with no historical value. On one occasion they were officially granted permission from the Architectural Authority to proceed with the demolition at 10 a.m. and then later on the same day at 11.45 a.m. received a second notification from another department saying that “permission to demolish it had been refused.” Today, this building still remains untouched in the centre of the city. Unfortunately, we learned of their experience well after we had begun our building process.
In Latvia’s new market economy, the officials who granted permissions were taking advantage of their newfound power. For businesses to gain any kind of documented approval, they now had to offer the officials something extra to get their signature of approval. Many approvals could not be completed by dealing directly with the officials responsible but had to be done through networks of connections. Valdis was frustrated and threw his arms in the air, stating “You had to use somebody who knows somebody who knows somebody.” Before Sandis, Kaspars and Valdis could even consider beginning construction, much more time was wasted and “under-the-table” fees needed to be paid to a portfolio of connections. Then, after construction had commenced, if the authorities wanted to stop the process to extract some additional favours, they could always find a mechanism whereby someone could complain and put a halt to everything. So, in total, it took the group several years to get all of the approvals to actually go ahead and commence the building construction.
When construction of Hotel Latvia finally commenced, a new problem confronted Sandis, Kaspars and Valdis. The builders and construction employees knew demand on construction services was vastly outstripping the current supply in Latvia, as only a limited number of building companies could build such large structures. As a result, the pressure on at the worksite was always intense, and the co-owners looked at using three builders to carry out the construction. If the builders arrived in the morning to commence the day’s work and if all of the materials or equipment were not there, or if some problem prevented them from starting immediately, then the builders would pack up and head off to work on another site. When this happened, the disruption resulted in the builders having to return later, and the price of construction would increase. This interruption in the schedule also resulted in frustrating delays; sometimes the builders would not return for several days. The hotel was a big project, and in the end, Valdis had to spend every day at the worksite to supervise the building company’s employees and ensure they were working. If no building company supervisor was present on the worksite, then the employees would often not work to capacity, significantly reducing their productivity. The construction companies knew that they were in a strong bargaining position. Sandis, Kaspars and Valdis were in a tough situation, as Latvia had too many buildings under construction, most were only partly completed and Latvia lacked a sufficient number of companies that were competent enough to do all the construction.
Valdis reflected:
We had a separate contract with a German company to do all the installations on the ground floor comprising the hotel’s entry, front desk area, bar and all the other features and facilities. They did a quality job and did it very quickly. The local Latvian builders were working on another part of the hotel at the same time, and the German builders had commented how at times the Latvian builders could not be found, were smoking outside or just sitting around doing nothing. In the end, I had to go to the site every day to supervise their work for the last four months including on the weekends, from the morning to the evening. Sometimes we had to threaten the builders to make sure they were doing their job because they took short cuts, time off or left to work on other building sites.
The German building company had designed the hotel and brought with them all of the materials to complete the entrance hall, and another German company came to install all of the lamps in the hotel. The German lighting employees were professional and efficient, and it took only three employees to complete the job in three days. For the Latvian construction companies, progress was much slower. After having to apply constant pressure on them to keep working effectively, the construction of the hotel was finally completed in one and a half years.
Finding the talented employees to staff the hotel was another issue. A large number of applications were received; however, finding the right standard and quality of employee suitable to staff this five-star operation required intense interviewing and a comprehensive training program.
The Hotel Latvia finally opened in 2006, and business started well. The hotel’s initial marketing campaign was successful: after six months of business, it was performing better than its competitors but was still not generating enough income to meet the co-owners’ strategic target. In the first two years, they generated enough income to service their loan but sometimes needed to contribute their own money to meet the repayments. Some adjustments were necessary, and halfway through their second year of operation, they sold their initial trial investment in Riga and asked the bank to deposit the funds from the sale into an offset account to reduce the interest being paid on the loan.
By the third year, Sandis, Kaspars and Valdis had also renegotiated an increase in the term of their loan from 20 years to 25 years, with the goal of reducing their repayments and, thus, the level of financial pressure. This strategy helped them to adjust to the change in market conditions and encouraged the untried entrepreneurs to become more contingent. Following the 2008 financial crisis, the level of tourism declined sharply in Latvia in 2009 and 2010. By then, due to the significant drop in tourist numbers, the co-owners were generating only 60 per cent of the revenue required to meet their business target.
To try to cope with the downturn in bookings and reduction in income generation, they needed to make some strategic changes. These changes included downsizing the staff by 18 per cent, closing one of the guest floors, eliminating one of the elevators to reduce power costs and opening their five-star restaurants only on weekends.
During the downturn, not only did individual people stop travelling but companies, government and universities stopped holding conferences and/or reduced the number of delegates they were sending to conferences. These changes resulted both in universities, governments and associations reducing their number of conferences and in many existing industry conferences significantly decreasing their budgets.
Said Sandis:
We had many solid and developing contracts for annual conferences and tours but at the beginning of 2009 there were many cancellations and a sharp drop off in group tours and individuals coming to stay at the Hotel.
At about this time a Dutch professor I knew came to Latvia for a short term on foreign exchange to give some lectures and organize some student exchanges. After a time, he told me he believed a high percentage of the Latvian university students will leave Latvia for Germany and other countries after they graduate. Although he was a foreigner, he was worried about the situation in our country. He believed the IMF [International Monetary Fund] had made a mistake to place such heavy austerity measures on Latvia and it had created a very bad situation that would be difficult to recover from. Although it was not openly reported in the Western press, Latvia was in trouble much earlier than Spain, Greece and Italy with their gross domestic product declining by 18 per cent in 2009. Most of the decline was in construction because, during the preceding period of steady growth, the real estate and construction sectors grew out of control and too many buildings were built for the demand at that time. This had resulted in the problem of an oversupply of rooms in the hotel sector.
Eventually, the Latvian economy collapsed, real estate prices declined, companies and many individuals holding loans went bankrupt, salaries decreased by 30 to 40 per cent, and many people lost their jobs with unemployment rising significantly. The government was in financial difficulty and could afford to pay people who had been retrenched only a small percentage of their promised redundancy or unemployment payments. Even worse was that the government’s unemployment financial assistance following redundancy usually lasted only nine months; and when these payments ceased, the unemployed persons had to take care of themselves.
The downturn delivered to Latvia a market economy reality check that very few people who had lived under Soviet control could predict, understand or imagine. Huge excesses had occurred at the beginning of the growth phase in 2002, when bankers and financiers had enjoyed considerable wealth, and they now had to be paid for. Not conducting the required due diligence on those who wanted to borrow the money when times were good and giving out poorly backed or unsupported loans was now having a severe and adverse effect on the Latvian economy.
Sandis, Kaspars and Valdis had worked hard and had built their hotel from the ground up during the peak in construction activity; as a result, their construction costs had been higher than expected. After the slowdown, business did not run according to their expectations and, like many others, they were in a difficult situation regarding loan repayments to the bank. Many people had taken out large bank loans and mortgaged everything, including their homes, to ride the boom. After the downturn, many companies went bankrupt, were taken over by the banks or closed down because they could not afford to make the repayments. Most were overexposed with too much debt and no liquidity to make the repayments. Although this situation was happening throughout Latvia, Sandis, Kaspars and Valdis still had the liquidity to continue making repayments, though their strategic options were severely reduced.
Due to their tight fiscal management, the three Hotel Latvia owners did not have to sell the hotel but began to consider whether they should get out while they were still able to break even. They realized that to go on trying to make money from the hotel would be hard work, and the venture had not delivered their expected outcome. They started wondering about their future risk on the amount of return they could generate. Were the hardest times over, meaning it would now be a mistake to sell? Solving all the approval problems during the years of construction had taken its toll, and with the building problems and increase in costs, it appeared that if they sold now, they could make a zero net gain in value on their decade of hard work and investment. At another time, the outcome would have been very profitable; however, the business environment following Latvia’s entry into the EU had taken its toll on and had disadvantaged Sandis, Kaspars and Valdis, as a result of a tough combination of factors: the Latvian people’s slow adaptation to the evolving market economy, corrupt bankers and government officials, building contractors taking advantage of the excess demand in the construction industry and the sudden economical crash.
Despite their situation, their bank was not currently concerned about their financial situation and was not putting pressure on them to liquidate their property or make any extra repayments on their loan. The bank had many other poorer performing loans and associated issues to worry about and its main concern was the number of its bad loans. Many lenders owed their banks substantial amounts of money, and many companies found themselves overextended and facing bankruptcy.
Valdis expressed his concern:
When we saw some good businesses being taken over by the banks without warning or with very short notice, we became concerned. We anticipated we may have to sell the hotel not long after it was completed because the cost of construction had gone 18 per cent over budget and, as a result, our monthly repayments and period of the loan had both grown significantly. Our business had started so well we thought the future would be profitable. Following the EU crash, it appeared some type of recovery had started and we thought there may be an opportunity to sell it in 2012 as Latvia’s credit and investment ratings proposed by the International Rating Agency, Standard and Poor’s, were improving and looking better.
But another serious problem was looming in the hotel sector. Latvia’s average price per room had dropped sharply because many hoteliers were in deep trouble and had started slashing their prices because they were located in less marketable locations. One example was the Reval Hotel that boasted 240 rooms in suburban Riga. Facing very poor occupancy, the operator in charge had suddenly slashed prices and had begun to sell rooms to large groups of tours at prices that were so low that they decimated the whole market. Once the Reval Hotel owners found out what their managers were doing, they immediately dismissed them and changed their operator but it was too late. For the rest of the market, the damage had already been done through the reductions in their bookings and through agents and customers who were no longer prepared to pay the former prices.
This incident happened at a critical time, when Sandis, Kaspars and Valdis were considering searching for a new partner to purchase 30 per cent of the hotel, in an effort to help reduce their loan pressure. Ideally, they needed a partner who had the cash to buy a portion of the property, and then the co-owners could use the money generated to offset or repay a larger part of the loan and thereby reduce their debt. With a fourth partner joining the group, it would have made it significantly easier to survive but after the Reval Hotel had slashed its prices, that option was no longer possible. The unpredictable situation drove away all potential buyers; they were afraid to invest and had decided to wait until the situation improved. Kaspars’s connections in a different bank informed him that the financial markets did not know what the situation may be for the future in Latvia, and much doubt surrounded the industry and marketplace. Some price targeting had broken out from time to time, and the reduced number of customers who required accommodation in Latvia were enjoying quality deals.
Upon reflection, compared with most of the businesses at that time, Sandis, Kaspars and Valdis were among the lucky ones. Despite their many problems, they still believed that, if necessary, they could still sell their hotel, pay off their debt and get out without losing money. Looking at the market around them, they saw many others lose everything; gone was the confidence that had existed before the crisis. Wisely, they had made sure they had mortgaged only the property on which the hotel was being built; none of their own private dwellings were included as part of their collateral on their original €22 million loan.
The Hotel Latvia was built on a prime piece of land in coastal Liepaja, so it retained most of its value following the crisis and did not decrease by in real estate value as much as other properties further from the centre of the city or in less marketable locations. As time wore on, many competitors disappeared completely. Those that had managed to survive had experienced significant decreases in income. At the beginning of 2012, Sandis, Kaspars and Valdis again commenced negotiations with a large global finance company based in London in an attempt to sell the hotel. They found that from 2008 to 2011, the sale price of the hotel had decreased by approximately 35 per cent. Their agents had tried selling the Hotel Latvia to different investment companies, and their responses had initially been positive. However, when investors saw the predicted future of Latvia and its poor credit and investment ratings, the buyers’ interest had ceased, and it was difficult for the agents to generate any serious interest.
Selling agents would tell us, “We know you guys have a good hotel but the country is no good. The climate for business and investment is poor and the future is not good.”
In the seven years following the boom that had begun in 2002, most of the surge in business activity, income generation and increases in prices had been in the construction industry. As a result, when the decline hit the construction companies, the support industries and related jobs were the worst affected. Only when the credit and investment ratings began to rise a few points in early 2013 did any purchasers begin to show any real interest in buying the hotel. Western investors were becoming interested again but their offers were still much below what the co-owners considered to be an acceptable price.
As Sandis explained:
They all came with the idea that they could buy our hotel for what we describe as “sandwiches.” I mean, for a very cheap price, and we thought they really wanted to buy it for nothing. The poor prices and demand were as a result of the construction bubble throughout Europe. Believe me, the politicians and bureaucrats could see it coming long before the crisis arrived but they did nothing because they were all set to make a lot of money out of it.
By the beginning of 2013, a slight recovery had begun, especially with the number of Russian tourists again beginning to grow. To Russian tourists, Latvia was now being marketed as an EU country and hence an international destination. In addition, rumours had begun that the EU was beginning to emerge from the recession, and that the steep austerity measures currently imposed at the time were soon to be eased.
Sandis, Kaspars and Valdis were at the point where they now had three options. One was to keep the hotel and continue working hard to enjoy the fruits of the supposed upturn that appeared to be commencing. The second option was to now find another partner to purchase a share in the company and to use this money to reduce their debt repayments and risk. Their third option was to sell the hotel completely and walk away with approximately the same amount of funds they had started with in 2002. Were there any other options?
Sandis knew the meeting with Valdis and Kaspars would occur on the evening after his return to Liepaja. He sat in the chair in his bungalow on the Maldives and wondered what they should do.
2023.03.28 17:45 Andrewscott12578 The Ultimate Guide to Self-Publishing Companies and Book Services for Aspiring Authors
Are you a budding author looking for the best self-publishing companies to publish your book? Or, are you searching for reliable book writing, promoting, and marketing services to help you achieve your publishing goals? If you answered yes to any of these questions, then this blog post is for you.
In this article, we’ll highlight some of the top self-publishing companies, book writing services, book marketing services, ghostwriting services, and other book writing, promoting, and marketing services that you can consider for your next book.
submitted by Andrewscott12578 to u/Andrewscott12578 [link] [comments]
In this article, we’ll highlight some of the top self-publishing companies, book writing services, book marketing services, ghostwriting services, and other book writing, promoting, and marketing services that you can consider for your next book.
Top Self-Publishing Companies
- Amazon KDP: Amazon KDP is one of the most popular self-publishing companies out there. With KDP, you can easily upload your manuscript and cover design, and have your book available for sale on Amazon within 24-48 hours.
- Writers Of USA: Writers Of USA is a great choice for authors looking to publish and distribute their books to bookstores, libraries, and online retailers. The company also offers distribution to over 40,000 retailers worldwide.
- Smashwords: Smashwords is an eBook distribution platform that allows authors to publish and distribute their books to major eBook retailers such as Barnes & Noble, Apple, and Kobo.
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Book Writing Services
- Writers Of USA: Writers Of USA is a popular platform that connects authors with professional editors, designers, and ghostwriters. The platform also offers a range of tools to help authors with their writing process.
- Ghostwriting Venture: Ghostwriting Venture is a professional ghostwriting service that offers affordable and high-quality writing services for authors.
- The Writers' Co-op: The Writers' Co-op is a team of experienced writers and editors who offer a range of writing services, including editing, proofreading, and manuscript evaluation.
Book Marketing Services
Book-Bub: Book-Bub is a popular book promotion platform that offers book recommendations to millions of readers. Authors can use the platform to promote their books to a large and engaged audience.- Writers Of USA: Writers Of USA is a book promotion platform that helps authors get their books discovered by readers. The platform also offers editorial reviews and marketing support.
- Smith Publicity: Smith Publicity is a book marketing agency that offers a range of marketing services, including book promotion, media outreach, and author branding.
Other Book Writing, Promoting & Marketing Services
- Writers Of USA: Writers Of USA is a self-publishing company that offers a range of services, including editing, cover design, and book distribution.
- Kobo Writing Life: Kobo Writing Life is a self-publishing platform that allows authors to publish and distribute their eBooks to major retailers such as Kobo and Barnes & Noble.
- Book-Sirens: Book-Sirens is a book review and promotion platform that offers reviews from a community of book reviewers. The platform also offers book promotion services to help authors get their books in front of more readers.
2023.03.28 17:35 Philip19967 Ultimate High Tide DD
Below is the latest in-depth and summary DD from High Tide (a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest non-franchised cannabis retail chain in Canada, with 151 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario) which I hope will be appreciated and shared.
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
submitted by Philip19967 to StockFamGroup [link] [comments]
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
2023.03.28 17:34 Philip19967 Ultimate High Tide DD
Below is the latest in-depth and summary DD from High Tide (a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest non-franchised cannabis retail chain in Canada, with 151 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario) which I hope will be appreciated and shared.
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
submitted by Philip19967 to WallStreetbetsELITE [link] [comments]
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
2023.03.28 17:32 Philip19967 Ultimate High Tide DD, is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world’s most powerful plant
Below is the latest in-depth and summary DD from High Tide (a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest non-franchised cannabis retail chain in Canada, with 151 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario) which I hope will be appreciated and shared.
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
submitted by Philip19967 to StocksDD [link] [comments]
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
2023.03.28 17:29 Philip19967 Ultimate High Tide DD
Below is the latest in-depth and summary DD from High Tide (a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest non-franchised cannabis retail chain in Canada, with 151 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario) which I hope will be appreciated and shared.
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Seeking Alpha Interview with CEO Raj Grover [5/19/22] -- https://youtu.be/VRAMOedblPs
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
submitted by Philip19967 to MicrocapStocks [link] [comments]
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Seeking Alpha Interview with CEO Raj Grover [5/19/22] -- https://youtu.be/VRAMOedblPs
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
2023.03.28 17:28 Philip19967 Ultimate High Tide DD
Below is the latest in-depth and summary DD from High Tide (a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest non-franchised cannabis retail chain in Canada, with 151 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario) which I hope will be appreciated and shared.
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?
submitted by Philip19967 to InvestmentEducation [link] [comments]
What I find important to note is the following:
High Tide is valued at approximately 120 million CAD market cap with double-digit annual growth and quarterly reduced expenses, in an ultra-competitive market, a constant increase in gross margins and a turnover of over 450 million annually. The company trades at 0.5 times the sales… These few lines, in addition to the in-depth and exhaustive dd, should make us reflect on the true value of the company and not on what the market values it now.
Earnings are expected after markets close tomorrow, enjoy reading :)
HIGH TIDE
ticker -- NASDAQ:HITI / TSXV:HITI
GLOBAL CANNABIS (brick&mortar & e-commerce) EMPIRE
🥦THC
⚕️ CBD
🍶 Accessories
📊 Data
🏧 Kiosks
🌱 Seeds
🇨🇦 🇺🇸 🇬🇧 🇩🇪
INVESTOR PRESENTATION: https://hightideinc.com/wp-content/uploads/2023/03/High-Tide-Investor-Presentation-Mar-21-2023.pdf [Updated march 2023]
Latest Earnings -> https://hightideinc.com/high-tide-reports-second-consecutive-quarter-of-record-revenue-and-adjusted-ebitda-118-million-and-5-5-million-respectively/
SOURCE STORY Snapshot: CEO and Raj Grover started the company that became High Tide with $50,000 and a vision. With never more than $30 million in the bank, Raj strategically transformed one store into today's 151-store, multi-vertical, growth rate of over $400 million in '23.
When they were only 8mln 4 years ago!
Wisely borrowing pages directly from dominant retail companies' playbooks of: COST COST: Club Membership = Low Prices = Loyalty = Market Share
STARBUCKS SBUX: dollar is selling the coffee, not growing the beans
High Tide's strategy is unique and farsighted, given the number of companies currently competing with themselves and the market saturation which increasingly reduces margins, but this does not affect High Tide.
#1 IN 🇨🇦 REVENUE FROM CANNABIS
High Tide Named Canada's Top Revenue Generating Cannabis Company [11/30/22]. https://www.forbes.com/sites/benjaminadams/2022/11/30/high-tide-named-canadas-top-revenue-generating-cannabis-company/?sh=384eced66033
CAPITAL MARKETS Highlights: the current share price is $1.20 USD, it is at a P/S multiple of 0.5 because the market capitalization is $160 million (USDcad) and the execution rate is $CAd 450 million (2023) . LOW FLOAT: Only ~55 million float = rapid upward movement in share price. Institutions, ETFs (MJ, THCX, YOLO, MJXL)
GLOBAL 🥦 THC + ⚕️ CBD + 🍶 ACCESSORIES STRATEGY
High Tide owns & operates a portfolio of cannabis-related businesses in several verticals:
🥦 THC
· www.CannaCabana.com -- 151 stores are #1 in 🇨🇦Canada selling THC, CBD, & Accessories.
{Same Store Sales up 46% Y/Y. Gaining 1% national Market Share per quarter since launching the discount club biz model late 2021. See "Q3 RE RECAP" below for more info.}
⚕️ CBD
· www.NuLeafNaturals.com & www.FabCBD.com -- Top CBD brands in the 🇺🇸USA with 70%+ margins
· www.BlessedCBD.co.uk -- the #1 CBD brand in the 🇬🇧 UK -- is now delivering to 🇩🇪 Germany & 🇺🇸 USA, and soon to France & Italy.
🍶 ACCESSORIES High Tide owns 3 of the top 5 global 🌐 US CA GB DE FR IT🌐
Accessory eCommerce businesses, and a 4th in the top 10:
· www.GrassCity.com
· www.SmokeCartel.com
· www.DailyHighClub.com
· www.DankStop.com'23-'24 EXPANSION PLANS
CANADIAN -- B&M "Canna Cabana" STORES -- THC, CBD and accessories:
2021: 105 (goals achieved!)
2022: 150 (goals achieved!)
2023: 200
USA -- Accessories e-commerce: At over $30 million, it's always possible that High Tide will pick up one more accessories e-commerce business to add to the other four.
GERMANY -- THC, CBD and accessories: already planning to establish a presence in Germany pending US decision/reschedule. Leading Canadian Cannabis Retailer To Open German 'High Street' Shops For Adult Use [12/10/22] -- https://businesscann.com/leading-canadian-cannabis-retailer-to-establish-german-adult-use - high-street-shops/
USA -- THC: Globally, High Tide has 3,000,000 High Lifetime Value (LTV) customers in its database (2.4 million in the USA) who have purchased accessories (pipes, bongs, vaporizers, dab rigs, etc.) -- segmented by country and US state.
Raj said, "We've had conversations with multiple US groups about a potential acquisition." Considering all factors (inflation, rising interest rates, falling stock market prices, cannabis sector, access to capital, etc.) it is likely that High Tide will have a 2nd mover advantage for US M&As at attractively low multiples, reaffirmed that they intend to become a top 5 US MSO.
INFORMATIVE VIDEOS & ARTICLES
High Tide Recaps Key Milestones of 2022 [12/30/22] -- https://hightideinc.com/high-tide-recaps-key-milestones-of-2022/
High Tide CEO On M&A, New Products And 3 Factors Holding The Cannabis Stock Back [12/22/22] -- https://www.benzinga.com/markets/cannabis/22/12/29959300/high-tide-ceo-on-m-a-new-products-and-3-factors-holding-the-cannabis-stock-back
How High Tide Became the ‘Costco of Cannabis’ [11/23/22] -- https://www.cannabisbusinesstimes.com/news/how-high-tide-became-the-costco-of-cannabis-canna-cabana/
Q3 2022 ER RECAP [reported 9/14]
https://hightideinc.com/high-tide-reports-third-quarter-2022-financial-results-featuring-a-98-increase-in-revenue-and-tenth-straight-quarter-of-positive-adjusted-ebitda/
A) Q3 ER showed continued growth in same store sales and 1% in market share every quarter! The discount club concept launched in late 2021 continues to drive sales & loyalty.
· Revenue $95.4MM - up 98% Y/Y -- 18% seq
· SSS (aka Same store sales) up 46% Y/Y -- 18% seq
· Adj EBITDA $4.2MM - up 176% Y/Y -- 77% seq
· Revenue now on $450+MM run rate.
📊 Graph of High Tide's National Market Share growth by quarter (since launching the discount club biz model) -- https://pbs.twimg.com/media/FlO4PLiXgAQbY4e?format=jpg&name=small
📊 Graph of High Tide's revenue growth -- https://pbs.twimg.com/media/FkhCCy-X0AMy8pg?format=png&name=small
B) NDF: $19M in Non-Dilutive Financing alleviates any cash concerns at industry leading <9% interest rates. https://hightideinc.com/high-tide-closes-19-million-non-dilutive-credit-facility-with-connectfirst-credit-union/
C) Cabana Elite monetization : Raj going to start to monetize the membership by EOY. Profits go straight to the bottom line. 900k members now. Example: if 20% of 1M members (200k) subscribe at $5/month ($60/year), that's an extra $12M in profit!
High Tide Launches Exclusive Paid Membership Program: “Cabana Elite” [11/29/22] -- https://hightideinc.com/high-tide-launches-exclusive-paid-membership-program-cabana-elite/
DISCOUNT CLUB BIZ MODEL [launched 12/20/21. paid Cabana Elite membership launched 11/29/22]
Launched 10/20/21 with 245K members. Currently 900K+ members as of EOY '22! https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/.
This was a DATA DRIVEN decision based on successful pilot programs
Membership in this loyalty program is FREE. Every person who walks into a Canna Cabana sees a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.
Stores are stocked w/ HIGH MARGIN products like consumption accessories, CBD, and house brands of shatter & gummies & prerolls -- with other form factors later.
Market Share and Same Store Sales growth are WAY up (see Q3 ER recap above) Q over Q while the other retailers (& USA MSOs btw) are seeing declines.
MEANING OF THE ACQUISITION OF NULEAF NATURALS [acquired on 11/22/21]https://hightideinc.com/high-tide-continues-expansion-into-global-cbd-market-with-acquisition-of-colorado-based-nuleaf-naturals/ Headquartered in Denver CO, NuLeaf Naturals is one of the leading CBD brands in the United States in terms of CBD blend research and intellectual property, rapid growth, and industry-leading margins. $16 million of the ~$20 million in revenue is directed to the consumer, but the expanding deal with Sprouts will allow for B&M's wider retail distribution. It is notable that their facility is cGMP certified. It can generate up to 60,000 vegan soft-gels per hour, or 25% of their activity. FabCBD production, co-packing and shipping were moved to the facility to save costs through operational efficiency. NULEAF comes with a cGMP certified manufacturing facility in Denver CO, USA, state of the art in CBD and other cannabinoids
🏧 KIOSK (FASTENDR) [launched 5/1/22]
https://hightideinc.com/high-tide-to-acquire-fastendr-retail-kiosk-and-smart-locker-technology-through-acquisition-of-bud-room-inc/. {Launched 5/1/22. Currently 175 Fastendr kiosks are operational in 120 Canna Cabana stores as of EOY '22}
The Discount Club model is causing long lines out the door. Taking a page from major retailers in other industries, this allows customers to order online or at a kiosk and collect from a "smart" locker. For those customers who know what they want and don't need budtender guidance, this is a handy convenience. Very few dispensaries in the world have this experience. Also mentioned in the PR is a desire to license this technology to other dispensaries and industries which could turn into another revenue stream. Delivery will be made available to all locations permitted by law but this offers a fast, convenient and quick way to ordecollect. It also cuts the dollars spent on budtenders by keeping the lines moving.
+ 🌿 SEEDS [Launched 12/13/22]
https://hightideinc.com/high-tide-enters-new-vertical-in-the-united-states-with-launch-of-cannabis-seeds/
Selling seeds is another high-margin revenue stream growing HITI's $3 million global customer database of High Lifetime Value users!
COMMANDING ECOMM RETAILER MULTIPLES
High Margin Private Label THC and FabCBD.com / BlessedCBD / NuLeaf, one of the main reasons High Tide is expected to be profitable later in 2023. When high tide...
A) Sells most accessories and CBD worldwide.
B) Owns multiple businesses in the US.
C) Sells data, kiosks and cannabis seeds
D) Selling their private label (think Kirkland) edible THC, vape and flower brands. E) Supplies supplies to dispensaries in multiple states.
F) PARTNER WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR HIGH VALUE CANNABIS CONSUMERS OVER 3 MILLION LIVES ...still only considered a Canadian cannabis retailer?