Document:

High Tide Inc.: Exhibit 4.28 - Filed by newsfilecorp.com

    

    FORM 51-102F3
MATERIAL CHANGE REPORT

    Item 1: Name and Address of Company

    High Tide Inc. (the "Company")
Unit 112, 11127 - 15 Street N.E.
Calgary, Alberta T3K 2M4

    Item 2: Date of Material Change

    May 3 and May 10, 2021.

    Item 3: News Release

    News releases were disseminated on May 3 and May 10, 2021 and filed on SEDAR at www.sedar.com, copies of which are attached hereto as Schedule "A".

    Item 4: Summary of Material Change

    On May 3, 2021, the Company announced that it has entered into a definitive agreement (the "Acquisition Agreement") with Fab Nutrition, LLC. ("FABCBD"), pursuant to which the Company would acquire an 80% interest in FABCBD for US$20.64 Million (the "Transaction"), and would have a three-year option to acquire the remaining 20% interest in FABCBD at any time, as further explained below. In connection with the Transaction, Josh Delaney would be joining the Company as general manager of FABCBD.

    On May 10, 2021, the Company announced that the Transaction had closed (the "Closing"). Consideration for the acquisition of an 80% interest in FABCDB was comprised of: (i) 15,154,109 common shares of the Company (the "Common Shares") valued at US$8.08 Million (the "Share Consideration") on the basis of a deemed price of $0.648 per Common Share, being equal to the volume weighted average price per Common Share on the TSX Venture Exchange for the 10 consecutive trading days preceding the Closing; and (ii) US$12.56 Million in cash (collectively with the Share Consideration, the "Consideration"). Upon Closing, FABCBD had approximately US$500,000 of cash and non-cash working capital, and inventory of approximately US$550,000.

    In addition, pursuant to the terms of the Acquisition Agreement:

    1. The vendor may be entitled to an earn out bonus of US$612,000 in the event that FABCBD exceeds gross revenues of at least US$13.5 Million in 2021, which will be paid, if due, in Common Shares based on the volume weighted average price per Common Share for the 10 consecutive trading days preceding payment, subject to a maximum of 1,425,106 Common Shares;

    2. FABCBD granted the Company an option to acquire all the remaining shares in FABCBD, thus allowing the Company to become the sole shareholder of FABCBD (the "Call Option"), at an enterprise value equal to the trailing twelve months of EBITDA multiplied by six, exercisable at any time for a period of three years from Closing;

    3. The Company granted FABCBD's founder, an option to put to the Company, the remaining shares in FABCBD not held by the Company (the "Put Option"), at the same enterprise value of the Call Option, exercisable by FABCBD's founder for a period of two years following the first anniversary of Closing;

    4. 25% of the Consideration, being 9,679,778 Common Shares, has been placed in escrow for a period of up to 24 months from Closing, with releases scheduled every six months.

    In connection with the Transaction, the Company paid their advisors, Bayline Capital Partners Inc., an arm's length party, an advisory fee equal to 3% of the Consideration, of which $376,854 was paid in cash on Closing, and the remaining $242,346 was satisfied through the issuance of 462,711 Common Shares.

    

    In addition, the Company announced the grant of 950,000 stock options (the "Options") of which: (i) 750,000 were granted to Mr. Delaney in connection with his appointment as general manager of FABCBD and (ii) 200,000 were issued to an employee of the Company. Each Option is exercisable at $0.60 per Common Share for a period of three years.

    Item 5.1: Full Description of Material Change 

    Please see news releases attached as Schedule "A".

    Item 5.2 Disclosure for Restructuring Transactions 

    Not applicable.

    Item 6: Reliance on subsection 7.1(2) of National Instrument 51-102 (Confidentiality)

    Not applicable.

    Item 7: Omitted Information

    No information has been omitted on the basis that it is confidential information.

    Item 8: Executive Officer

    For additional information with respect to this material change, the following person may be contacted:

    Raj Grover

    President, Chief Executive Officer & Director
Tel: (403) 770-9435 Email: raj@hightideinc.com

    Item 9: Date of Report

    May 13, 2021.

    

    SCHEDULE "A"

     

    (See attached.)

    

    High Tide Increases U.S. Presence Through Acquisition of Leading CBD E-Commerce Retailer FABCBD

    	Acquisition boosts High Tide's current U.S. revenue run rate by ~60% to over C$40 Million
	Highly accretive transaction for shareholders, as FABCBD generated 2020 revenue of US$10.8 Million and EBITDA of US$4.3 Million - with each metric having more than doubled in each of the past two years
	Strong financial profile which generated 74% gross margins and 40% EBITDA margins in 2020
	Complementary acquisition adding a fully direct to consumer e-commerce platform, which is in line with High Tide's retail strengths 
	Potential for meaningful synergies and cross-selling opportunities, including offering FABCBD products on CBDCity, GrassCity and Smoke Cartel and bringing the FABCBD brand to Canada and the E.U.

    CALGARY, AB, May 3, 2021 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (TSXV: HITI) (OTCQB: HITIF) (FRA: 2LY), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that it is taking another step towards solidifying itself as a major player within the U.S. e-commerce marketplace for accessories and hemp-derived CBD products, by entering into a definitive agreement (the "Acquisition Agreement") pursuant to which High Tide will acquire 80% of Fab Nutrition, LLC. ("FABCBD"), operating as FABCBD for US$20.64 Million (the "Transaction"), and will have a three-year option to acquire the remaining 20% of FABCBD at any time.

    

    High Tide Inc. Logo (CNW Group/High Tide Inc.)

    Founded in 2017 with its headquarters in Milwaukee, Wisconsin, FABCBD has quickly grown to become one of the most popular brands for hemp-derived CBD products across the U.S., including CBD oils, creams, gummies, and dog treats. In 2020 FABCBD had over 1.3 Million online impressions and an average order value of US$91.90. FABCBD's founder and sole shareholder, Josh Delaney, will join the High Tide team, as general manager of FABCBD, and will help with growing High Tide's CBD business globally.

    "Investors will recall that just over two months ago we declared our intentions to ramp up acquisition activity at High Tide, and we had disclosed our approach to focus on businesses that were in the U.S., compatible with our ecosystem, and generating meaningful results. In this context, I could not be more thrilled to announce the acquisition of FABCBD," said Raj Grover, President and Chief Executive Officer of High Tide. "We evaluated numerous U.S. CBD opportunities and FABCBD clearly stuck out from the rest. FABCBD has been exceptionally run, having more than doubled revenue and EBITDA in each of 2019 and 2020, including generating terrific gross margins of 74% and EBITDA margins of 40% in 2020 - by far the highest of all CBD companies we evaluated. In addition to the company's financial profile, we were also attracted to FABCBD's corporate social responsibility initiatives and spirit of giving back - which are both ingrained in our DNA as well. With thousands of satisfied U.S. customers, the FABCBD brand is well positioned for international expansion. I am very excited to welcome Josh and the FABCBD team to the High Tide family," added Mr. Grover.

    "We've entertained many potential partners over 2020, measuring strategic fit, team dynamics and company mission. When we met Raj and the High Tide team, we instantly felt they had the right organization for us to align with. High Tide has a very complementary culture to FABCBD, with a similar EBITDA- focused approach that we appreciate." said Josh Delaney, CEO of FABCBD. "Our team is very important and couldn't be more excited to work with High Tide. I look forward to being a meaningful shareholder of High Tide and leveraging its resources and reach to continue driving the company's CBD business globally," added Mr. Delaney.

    Strategic Highlights

    Accelerates High Tide's U.S. exposure - While High Tide was already in the U.S. CBD sector since organically launching CBDCity in May 2020, the addition of FABCBD will turn it into a major player overnight. Pro forma following the acquisition of FABCBD, the Company's annual U.S. revenue run rate will exceed C$40 Million.

    Immediate synergies and cross-selling opportunities - High Tide plans to offer FABCBD products on its other U.S. e-commerce platforms, CBDCity, GrassCity and Smoke Cartel in the near-term. A clear opportunity exists to bring the brand to Canada via an arrangement with a licensed producer and sell FABCBD products across High Tide's own network of 85 retail outlets, as well as other retailers. Looking further out, High Tide intends to leverage its e- commerce and distribution infrastructure in Amsterdam to take the FABCBD brand to the E.U. market.

    Pure e-commerce play is in line with High Tide's strengths - FABCBD carries multiple product formulations that are exclusive to FABCBD and are manufactured by contract manufacturers around the country. 100% of sales are direct to consumer online from their website. In 2020 FABCBD fulfilled approximately 124,000 orders from over 1 Million unique site visitors.

    Highly accretive to financial results - Given its online success and lean overhead, FABCBD generated 2020 gross margins of 74% and EBITDA margins of 40% - both of which are highly accretive to High Tide's consolidated profile.

    Continued growth - FABCBD has continued to post meaningful gains in both revenue and EBITDA during the first four months of 2021 compared to the prior year period. Of note, FABCBD generated US$160,000 of sales on April 20, 2021 - which including High Tide's other platforms results in pro forma sales just shy of C$1 million for this year's 4/20.

    Large global potential - The European Business review recently cited a study by Grandview Research which predicts that, "over the next five years, the global CBD industry is projected to accelerate to $23.6 billion."1 According to a Technavio market research report titled Global CBD Oil Market 2020-2024, the global CBD oil market is set to expand by USD $3.52 billion up to 2024, progressing at a compound annual growth rate of over 32%.2

    Transaction Details

    The Transaction, which is an arm's length transaction, is subject to, among other things, receipt of required TSX Venture Exchange ("TSXV") approval, and other customary conditions of closing, is expected to close during the first half of May 2021, implies an enterprise valuation of US$25.80 Million, representing 6.0x 2020 EBITDA. The consideration for the 80% acquired will be comprised of: (i) US$8.08 Million (the "Share Consideration") in common shares of High Tide ("High Tide Shares") on the basis of a deemed price per High Tide Share equal to the volume weighted average price per High Tide Share on the TSXV for the 10 consecutive trading days preceding closing of the Transaction ("Closing"); and (ii) US$12.56 Million in cash (collectively with the Share Consideration, the "Consideration"). The cash portion of the transaction will be funded entirely with cash on hand. Upon closing, FABCBD will have approximately US$500,000 of cash and non-cash working capital and inventory of approximately US$550,000.

    

     In addition to the foregoing, FABCBD's founder has agreed to grant High Tide an option to acquire all the remaining shares in FABCBD not held by High Tide, and become the sole shareholder of FABCBD (the "Call Option"), at an enterprise value equal to the trailing twelve months of EBITDA multiplied by six. The Call Option will be exercisable at any time for a period of three (3) years following the Closing. In addition, High Tide has agreed to grant FABCBD's founder an option to put to High Tide, the remaining shares in FABCBD not held by High Tide (the "Put Option"), at the same enterprise value of the Call Option. The Put Option will be exercisable by FABCBD's founder for a period of two (2) years following the first anniversary of the Closing. The consideration under the Call Option or the Put Option, if exercised, will be satisfied in High Tide Shares, on the basis of a deemed price per High Tide Share equal to the volume weighted average price per High Tide Share on the TSXV for the 10 consecutive trading days preceding closing of the Call Option or the Put Option, as the case may be.

    Bayline Capital Partners Inc. ("Bayline") and KPMG LLP served as High Tide's advisors in connection with the Transaction. In connection with the Transaction, the Company has agreed to pay Bayline, an arm's length party, a finder's fee equal to 3% of the Consideration, 50% in cash on Closing, and 50% in High Tide Shares calculated on the same basis as the Share Consideration.

    The High Tide Shares issued Bayline and pursuant to the Share Consideration are subject to a statutory hold period of four months and one day.

    ABOUT FABCBD

    Fab Nutrition, LLC is one of the leading online retailers of hemp-derived CBD products. The company provides a marketplace with a wide variety of high- quality products and formulas, affordable pricing, rapid dependable shipping, and surprisingly personable customer service. The company's website at www.fabcbd.com.

    ABOUT HIGH TIDE

    High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the most profitable Canadian retailer of recreational cannabis as measured by Adjusted EBIDTA,3 with 85 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its numerous consumption accessory businesses including e-commerce platforms Grasscity.com, Smoke Cartel and CBDcity.com, and its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide's strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aphria Inc. (TSX:APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).

    Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include statements relating to High Tide's intention and ability to complete the Transaction on the terms and conditions set out in the Acquisition Agreement; the potential effects of the Transaction on the business of High Tide, including the expectation that the Transaction positioning High Tide to begin online cannabis sales in the United States should federal legalization occur in the United States. While High Tide considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements.

    Forward-looking statements also necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the retail cannabis markets; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the retail cannabis industries generally; income tax and regulatory matters; the ability of High Tide to implement its business strategy; competition; currency and interest rate fluctuations; the COVID-19 pandemic nationally and globally and the response of governments to the COVID-19 pandemic in respect of the operation of retail stores and other risks. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Readers are further cautioned that the assumptions used in the preparation of such forward-looking statements (including, but not limited to, the assumption that (i) High Tide will successfully complete the Transaction (and will obtain all requisite approvals) on the terms and within the timelines anticipated by High Tide (ii) High Tide's financial condition and development plans do not change as a result of unforeseen events, (iii) there will continue to be a demand, and market opportunity, for High Tide's product offerings,

    (iv) current and future economic conditions will neither affect the business and operations of High Tide nor High Tide's ability to capitalize on anticipated business opportunities), although considered reasonable by management of High Tide at the time of preparation, may prove to be imprecise and result in actual results differing materially from those anticipated, and as such, undue reliance should not be placed on forward-looking statements.

    Forward-looking statements, forward-looking financial information and other metrics presented herein are not intended as guidance or projections for the periods referenced herein or any future periods, and in particular, past performance is not an indicator of future results and the results of High Tide in this press release may not be indicative of, and are not an estimate, forecast or projection of High Tide future results. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. High Tide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters referred to above and elsewhere in High Tide's public filings and material change reports, which are and will be available on SEDAR.

    This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.

    1 Source: https://www.prnewswire.com/news-releases/global-cbd-industry-projected-to-accelerate-to-23-6-billion-over-the-next-five-years-301179412.html

    2 Source: https://www.businesswire.com/news/home/20201102006013/en/Global-CBD-Oil-Market-2020-Trends-Development-Status-Investment-Opportunities-CAGR-Revenue-Demand-and-Forecast-to-2024-Technavio

    3 Adjusted EBITDA is a non-IFRS financial measure.

    

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    http://www.prnewswire.com/news-releases/high-tide-increases-us-presence-through-acquisition-of-leading-cbd-e-commerce-retailer-fabcbd-301281726.html 

    SOURCE High Tide Inc.

    c View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2021/03/c4195.html

    %SEDAR: 00045217E

    For further information: High Tide Inc., Omar Khan, Senior Vice President, Corporate and Public Affairs, omar@hightideinc.com, Tel. 1 (647) 985-4401

    CO: High Tide Inc.

     

    CNW 06:00e 03-MAY-21

    

    High Tide Closes Acquisition of Leading CBD E-Commerce Retailer FABCBD

    CALGARY, AB, May 10, 2021 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (TSXV: HITI) (OTCQB: HITIF) (FRA: 2LY), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that it has completed the acquisition (the "Acquisition") of Fab Nutrition, LLC, operating as FABCBD ("FABCBD") thus meaningfully increasing its presence within the U.S. e-commerce marketplace for hemp-derived CBD products. The acquisition is just one of a series of recent steps the Company has taken to considerably expand its footprint in the United States market by selling products that are already federally permissible, and demonstrates that High Tide can drive profitability without having to wait for federal cannabis legalization.

    

    High Tide Inc. - May 10, 2021 (CNW Group/High Tide Inc.)

    The Acquisition was completed pursuant to the terms of the definitive agreement (the "Acquisition Agreement") previously announced by the Company on May 3, 2021, pursuant to which High Tide has acquired 80% of FABCBD for US$20.64 Million (the "Transaction") and has been granted a three-year option to acquire the remaining 20% of FABCBD at any time.

    The consideration for the 80% of FABCBD which is being acquired by High Tide is comprised of: (i) 15,154,09 common shares of High Tide ("High Tide Shares") valued at US$8.08 Million (the "Share Consideration") on the basis of a deemed price per High Tide Share of $0.648, being equal to the volume weighted average price per High Tide Share on the TSXV for the 10 consecutive trading days preceding the closing of the Transaction ("Closing"); and (ii) US$12.56 Million in cash (collectively with the Share Consideration, the "Consideration"). The cash portion of the Transaction has been funded entirely with cash on hand. In addition, pursuant to the Acquisition Agreement the vendor may be entitled to an earn out bonus of US$612,000 in the event that FABCBD exceeds gross revenues of at least US$13,500,000 in 2021, which will be paid, if due, in High Tide Shares based on the volume weighted average price per High Tide Share for the 10 consecutive trading days preceding payment, subject to a maximum of 1,425,106 High Tide Shares. To date, upon Closing, FABCBD has approximately US$500,000 of cash and non-cash working capital and inventory of approximately US$550,000.

    In addition to the foregoing, as per the terms of the Acquisition Agreement, FABCBD has granted High Tide an option to acquire all the remaining shares in FABCBD not held by High Tide, thus allowing High Tide to become the sole shareholder of FABCBD (the "Call Option"), at an enterprise value equal to the trailing twelve months of EBITDA multiplied by six. The Call Option will be exercisable at any time for a period of three (3) years from Closing. In addition, High Tide has agreed to grant FABCBD's founder an option to put to High Tide, the remaining shares in FABCBD not held by High Tide (the "Put Option"), at the same enterprise value of the Call Option. The Put Option will be exercisable by FABCBD's founder for a period of two (2) years following the first anniversary of Closing. The consideration under the Call Option or the Put Option, if exercised, will be satisfied in High Tide Shares, on the basis of a deemed price per High Tide Share equal to the volume weighted average price per High Tide Share on the TSXV for the 10 consecutive trading days preceding closing of the Call Option or the Put Option, as the case may be.

    Pursuant to the Acquisition Agreement, 9,679,778 High Tide Shares, equal to 25% of the Consideration has been placed in escrow for a period of up to 24 months from Closing, with releases scheduled every six months.

    Bayline Capital Partners Inc. ("Bayline") and KPMG LLP served as High Tide's advisors in connection with the Transaction. In connection with the Transaction, the Company has agreed to pay Bayline, an arm's length party, an advisory fee equal to 3% of the Consideration, 50% in cash on Closing, and 50% in High Tide Shares, being 462,711 High Tide Shares.

    The High Tide Shares issued for the acquisition of FABCBD and to Bayline are subject to a statutory hold period of four months and one day.

    Furthermore, High Tide granted 950,000 stock options (the "Options") to Josh Delaney, founder and CEO of FABCBD (750,000) and an employee of High Tide (200,000), exercisable at $0.60 per High Tide Share for a period of three years.

    ABOUT FABCBD

    Fab Nutrition, LLC is one of the leading online retailers of hemp-derived CBD products. The company provides a marketplace with a wide variety of high-quality products and formulas, affordable pricing, rapid dependable shipping, and surprisingly personable customer service. The company's website at www.fabcbd.com.

    

    ABOUT HIGH TIDE

    High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the most profitable Canadian retailer of recreational cannabis as measured by Adjusted EBIDTA,[1] with 85 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its numerous consumption accessory businesses including e-commerce platforms Grasscity.com, Smoke Cartel and CBDcity.com, and its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide's strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aphria Inc. (TSX:APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).

    Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include statements relating to High Tide's intention and ability to complete the Transaction on the terms and conditions set out in the Acquisition Agreement; the potential effects of the Transaction on the business of High Tide, including the expectation that the Transaction will position High Tide to continue online hemp product/accessories sales in the United States should federal legalization occur in the United States; statements regarding the sale of FABCBD products on High Tide's existing U.S. e- commerce platforms and the potential sale on its Canadian platforms; and receipt of all requisite regulatory approval, including from the TSXV. While High Tide considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements.

    Forward-looking statements also necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving the retail cannabis markets; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the retail cannabis industries generally; income tax and regulatory matters; the ability of High Tide to implement its business strategy; competition; currency and interest rate fluctuations; the COVID-19 pandemic nationally and globally and the response of governments to the COVID-19 pandemic in respect of the operation of retail stores and other risks. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur.

    Readers are further cautioned that the assumptions used in the preparation of such forward-looking statements (including, but not limited to, the assumption that (i) High Tide's financial condition and development plans do not change as a result of unforeseen events, (ii) there will continue to be a demand, and market opportunity, for High Tide's product offerings, (ii) current and future economic conditions will neither affect the business and operations of High Tide nor High Tide's ability to capitalize on anticipated business opportunities), although considered reasonable by management of High Tide at the time of preparation, may prove to be imprecise and result in actual results differing materially from those anticipated, and as such, undue reliance should not be placed on forward-looking statements.

    Forward-looking statements, forward-looking financial information and other metrics presented herein are not intended as guidance or projections for the periods referenced herein or any future periods, and in particular, past performance is not an indicator of future results and the results of High Tide in this press release may not be indicative of, and are not an estimate, forecast or projection of High Tide's future results. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. High Tide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Factors that could cause anticipated opportunities and actual results to differ materially include, but are not limited to, matters referred to above and elsewhere in High Tide's public filings and material change reports, which are and will be available on SEDAR.

    This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.

    ____________________

    1 Adjusted EBITDA is a non-IFRS financial measure.

    

    c View original content to download multimedia:

    http://www.prnewswire.com/news-releases/high-tide-closes-acquisition-of-leading-cbd-e-commerce-retailer-fabcbd-301287153.html 

    SOURCE High Tide Inc.

    c View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2021/10/c3238.html

    %SEDAR: 00045217E

    For further information: High Tide Inc., Omar Khan, Senior Vice President, Corporate and Public Affairs, Tel. 1 (647) 985-4401, Email: omar@hightideinc.com; Fab Nutrition, LLC, Josh Delaney, CEO, Founder, Email: josh@fabnutrition.com

    CO: High Tide Inc.

    CNW 06:00e 10-MAY-21High Tide Inc.: Exhibit 4.29 - Filed by newsfilecorp.com

    

    FORM 51-102F3
MATERIAL CHANGE REPORT

    Item 1: Name and Address of Company

    High Tide Inc. (the "Company")
Unit 112, 11127 - 15 Street N.E.
Calgary, Alberta T3K 2M4

    Item 2: Date of Material Change

    May 13, 2021.

    Item 3: News Release

    News releases were disseminated on May 12 and May 13, 2021 and filed on SEDAR at www.sedar.com.

    Item 4: Summary of Material Change

    On May 12, 2021, the Company announced that it will consolidate all of its issued and outstanding common shares ("Common Shares") on the basis of one (1) post-consolidation Common Share for each fifteen (15) pre-consolidation Common Shares (the "Share Consolidation") thus enabling the Company to meet the minimum share price requirement set by the Nasdaq Stock Market LLC.

    The Share Consolidation was approved by the Company's shareholders at the Company's annual and special meeting on June 24, 2019 and subsequently by the Company's board of directors.

    On May 13, 2021, the Company commenced trading on the TSX Venture Exchange (the "TSXV") on a post- consolidated basis pursuant to the terms of the Share Consolidation. A letter of transmittal was sent by mail to registered shareholders advising that the Share Consolidation had taken place. The letter of transmittal contains instructions on how registered shareholders can exchange their share certificates or Direct Registration System ("DRS") statements evidencing their pre-consolidation Common Shares for new share certificates or new DRS statements representing the number of post-consolidation Common Shares to which they are entitled.

    The Company projected that on a post-consolidated basis:

    - The existing 690,834,719 Common Shares will be reduced to approximately 46,055,653 Common Shares, subject to adjustments for rounding purposes (no fractional shares will be issued). Any fractional interest in Common Shares that is less than 0.5 of a Common Share resulting from the Share Consolidation will be rounded down to the nearest whole Common Share and any fractional interest in Common Shares that is 0.5 or greater of a Common Share will be rounded up to the nearest whole Common Share.

    - The current number of Common Share purchase warrants (35,193,728) originally issued by Meta Growth ("Meta Warrants") listed for trading on the TSXV, each exercisable at $0.29 per Meta Warrant for 0.824 Common Share will not be altered; however, the exercise terms will be adjusted in accordance with the terms of the warrant indenture dated February 6, 2020, as supplemented on November 16, 2020, such that fifteen Warrants will be exercisable for 0.824 post-Share Consolidation Common Share following the payment of an adjusted exercise price of $4.35.

    - The current number of Common Share purchase warrants (23,958,332) originally issued as a part of the 2021 bought deal ("HITI Warrants") listed for trading on the TSXV, each exercisable at $0.58 per HITI Warrant for one Common Share will not be altered; however, the exercise terms will be adjusted in accordance with the terms of the warrant indenture dated February 22, 2021, such that fifteen HITI Warrants will be exercisable for one post-Share Consolidation Common Share following the payment of an adjusted exercise price of $8.70.

    

    - The current number of $900,000 principal amount of convertible debentures outstanding originally issued by Meta Growth ("Convertible Debentures") listed for trading on the TSXV, convertible at $0.22 per Common Share ("Conversion Price") will not be altered; however the conversion terms will be adjusted in accordance with the terms of the warrant indenture dated November 23, 2018, as supplemented on November 16, 2020, such that the Conversion Price will be $3.30 per one post-Share Consolidation Common Share.

    The new CUSIP number for the post-consolidation Common Shares is 42981E401 and the new ISIN number is CA42981E4013. No changes were made to the CUSIP number or ISIN number for the Meta Warrants, HITI Warrants or Convertible Debentures.

    Item 5.1: Full Description of Material Change 

    Please see news releases attached as Schedule "A".

    Item 5.2 Disclosure for Restructuring Transactions 

    Not applicable.

    Item 6: Reliance on subsection 7.1(2) of National Instrument 51-102 (Confidentiality)

    Not applicable.

    Item 7: Omitted Information

    No information has been omitted on the basis that it is confidential information.

    Item 8: Executive Officer

    For additional information with respect to this material change, the following person may be contacted:

    Raj Grover

    President, Chief Executive Officer & Director 
Tel: (403) 770-9435 Email: raj@hightideinc.com

    Item 9: Date of Report

    May 20, 2021.

    

    SCHEDULE "A"

    (See attached.)

    

    High Tide Announces Details of Consolidation to Meet NASDAQ Listing Requirements

    	15:1 share consolidation to begin trading on or about May 14, 2021
	NASDAQ Capital Market listing expected in May 2021 under ticker symbol HITI

    CALGARY, AB, May 12, 2021 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (TSXV: HITI) (OTCQB: HITIF) (FRA: 2LY), a retail- focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that it will be consolidating all of its issued and outstanding common shares ("Common Shares") on the basis of one (1) post-consolidation Common Share for each fifteen (15) pre-consolidation Common Shares (the "Share Consolidation"). The Share Consolidation represents another major step towards the listing of the Common Shares on The Nasdaq Stock Market LLC ("Nasdaq") by meeting the minimum share price requirement set by Nasdaq.

    

    High Tide Inc. - May 12, 2021 (CNW Group/High Tide Inc.)

    "Today's news represents a significant milestone towards High Tide becoming the first major cannabis retailer anywhere in the world to be listed on Nasdaq, making our shares more accessible to a larger audience of both retail and institutional investors, and increasing our appeal to potential M&A targets," said Raj Grover, President and Chief Executive Officer of High Tide. "The announced share consolidation, coupled with other recent progress in our application, gives us confidence that we remain on course to meet the listing standards and begin trading on Nasdaq by the end of this month," added Mr. Grover.

    The listing of High Tide's Common Shares on Nasdaq remains subject to the approval of Nasdaq and the satisfaction of all applicable listing and regulatory requirements, including the effectiveness and clearing comments of the Form 40-F. Following receipt of all required approvals, the Company will issue a press release announcing its first trading date on Nasdaq.

    Share Consolidation Details

    The Company's board of directors approved the Share Consolidation and it is expected that the Common Shares will commence trading on a post-Share Consolidation basis on the TSX Venture Exchange (the "TSXV") on or about Friday May 14, 2021.

    The Share Consolidation was approved by holders of Common Shares at the Company's annual and special meeting held on July 24, 2019. The Share Consolidation is subject to acceptance by the TSXV.

    Assuming the Share Consolidation is completed, the existing 690,834,719 Common Shares will be reduced to approximately 46,055,653 Common Shares, subject to adjustments for rounding purposes. No fractional shares will be issued. Any fractional interest in Common Shares that is less than 0.5 of a Common Share resulting from the Share Consolidation will be rounded down to the nearest whole Common Share and any fractional interest in Common Shares that is 0.5 or greater of a Common Share will be rounded up to the nearest whole Common Share.

    There are currently 35,193,728 Common Share purchase warrants originally issued by Meta Growth ("Meta Warrants") listed for trading on the TSXV, each exercisable at $0.29 per Meta Warrant for 0.824 Common Share. Following the Share Consolidation, the number of listed Meta Warrants outstanding will not be altered; however, the exercise terms will be adjusted in accordance with the terms of the warrant indenture dated February 6, 2020, as supplemented on November 16, 2020, such that fifteen Warrants will be exercisable for 0.824 post- Share Consolidation Common Share following the payment of an adjusted exercise price of $4.35.

    There are currently 23,958,332 Common Share purchase warrants originally issued as a part of the 2021 bought deal ("HITI Warrants") listed for trading on the TSXV, each exercisable at $0.58 per HITI Warrant for one Common Share. Following the Share Consolidation, the number of listed HITI Warrants outstanding will not be altered; however, the exercise terms will be adjusted in accordance with the terms of the warrant indenture dated February 22, 2021, such that fifteen HITI Warrants will be exercisable for one post-Share Consolidation Common Share following the payment of an adjusted exercise price of $8.70.

    There are currently $900,000 principal amount of convertible debentures originally issued by Meta Growth ("Convertible Debentures") listed for trading on the TSXV, convertible at $0.22 per Common Share ("Conversion Price"). Following the Share Consolidation, the number of listed Convertible Debentures outstanding will not be altered; however, the conversion terms will be adjusted in accordance with the terms of the debenture indenture dated November 23, 2018, as supplemented on November 16, 2020, such that the Conversion Price will be adjusted to $3.30 per post-Share Consolidation Common Share.

    Upon completion of the Share Consolidation, a letter of transmittal will be sent by mail to registered shareholders advising that the Share Consolidation has taken effect. The letter of transmittal will contain instructions on how registered shareholders can exchange their share certificates or Direct Registration System ("DRS") statements evidencing their pre-consolidation Common Shares for new share certificates or new DRS statements representing the number of post-consolidation Common Shares to which they are entitled.

    Beneficial shareholders holding their Common Shares through an intermediary may be subject to different procedures for obtaining their post-consolidation Common Shares. If you have questions in this regard, you are encouraged to contact your intermediary.

    

    The Company does not intend to change its name or seek a new stock trading symbol in connection with the Share Consolidation.

    The Company's new CUSIP number for the post-consolidation Common Shares is 42981E401 and the new ISIN number is CA42981E4013. There are no changes to the CUSIP number or ISIN number for the Meta Warrants, HITI Warrants or Convertible Debentures.

    About High Tide Inc.

    High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the most profitable Canadian retailer of recreational cannabis as measured by Adjusted EBIDTA,1 with 85 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its numerous consumption accessory businesses including e-commerce platforms Grasscity.com, Smokecartel.com and CBDcity.com, and its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide's strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aphria Inc. (TSX:APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).

    ____________________

    1 Adjusted EBITDA is a non-IFRS financial measure.

    Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements regarding High Tide and its business include, but are not limited to, statements with respect to: the potential listing of High Tide's Shares on Nasdaq, the timing thereof, receipt of regulatory approval for, and the Form 40-F Registration Statement with the SEC. The forward-looking events and circumstances discussed in this press release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting High Tide, including risks relating to the listing of High Tide's securities in the United States, a shutdown of the United States government, the Nasdaq listing not providing High Tide with broadened access to international investors or enhance High Tide's liquidity, the Company not expanding globally, which could result in the Company not having a diversified business platform for growth, the Company not being well positioned to pursue additional opportunities for growth, or such opportunities no longer being available to High Tide, risks associated with the geographic markets in which High Tide operates, risks associated with fluctuations in exchange rates (including, without limitation, fluctuations in currencies), risks associated with the cannabis industry and the regulation thereof, the failure to comply with applicable laws, the failure to obtain regulatory approvals, economic factors, market conditions, the equity and debt markets generally, risks associated with growth and competition, general economic and stock market conditions, risks and uncertainties detailed from time to time in High Tide's filings with the SEC and Canadian Securities Administrators, the COVID-19 pandemic nationally and globally and the response of governments to the COVID-19 pandemic in respect of the operation of retail stores and other risks and many other factors beyond the control of High Tide. Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

    Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. High Tide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

    c View original content to download multimedia:

    http://www.prnewswire.com/news-releases/high-tide-announces-details-of-consolidation-to-meet-nasdaq-listing-requirements-301289365.html SOURCE High Tide Inc.

    c View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2021/12/c3858.html

    %SEDAR: 00045217E

    For further information: Omar Khan, Senior Vice President, Corporate and Public Affairs, omar@hightideinc.com, Tel. 1 (647) 985-4401

    CO: High Tide Inc.

    CNW 06:00e 12-MAY-21

    

    High Tide Commences Trading on Consolidated Basis

    CALGARY, AB, May 13, 2021 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (TSXV: HITI) (OTCQB: HITID) (FRA: 2LY), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that further to its press releases dated May 12, 2021, all of its issued and outstanding common shares ("Common Shares") began trading on a post- consolidation basis on May 13, 2021.

    

    High Tide Inc. _ May 13, 2021 (CNW Group/High Tide Inc.)

    On May 12, 2021, the Company announced that the Common Shares would be consolidated on the basis of one (1) post-consolidation Common Share for each fifteen (15) pre-consolidation Common Shares (the "Share Consolidation"). The Share Consolidation represents another step towards the listing of the Common Shares on The Nasdaq Stock Market LLC ("Nasdaq") by meeting the minimum share price requirement set by Nasdaq.

    The Share Consolidation has reduced the number of existing Common Shares from 690,834,719 Common Shares to approximately 46,055,653 Common Shares. A letter of transmittal was sent by mail to registered shareholders advising that the Share Consolidation has taken effect. The letter of transmittal contains instructions on how registered shareholders can exchange their share certificates or Direct Registration System ("DRS") statements evidencing their pre-consolidation Common Shares for new share certificates or new DRS statements representing the number of post-consolidation Common Shares to which they are entitled.

    As disclosed on the press release dated May 12, 2021, there are currently 35,193,728 Common Shares purchase warrants originally issued by Meta Growth ("Meta Warrants") listed for trading on the TSX Venture Exchange ("TSXV") (TSXV: HITI.WT). As a result of the Share Consolidation, the number of listed Common Warrants outstanding was not altered; however, the exercise terms were adjusted in accordance with the terms of the warrant indenture dated February 26, 2020, as supplemented on November 16, 2020, such that 15 Meta Warrants are now exercisable for 0.824 post-Share Consolidation Common Share following the payment of an adjusted price of $4.35, meaning that effectively holders of Meta Warrants will be entitled to receive one post- Share Consolidation Common Share upon exercising 18.2 Meta Warrants and paying $5.28.

    Furthermore, there are currently 23,958,332 Common Shares purchase warrants originally issued as a part of a bought deal ("HITI Warrants") listed for trading on the TSXV (TSXV: HITI.WR). As a result of the Share Consolidation, the number of HITI Warrants outstanding was not altered; however, the exercise terms were adjusted in accordance with the terms of the warrant indenture dated February 22, 2021, such that fifteen HITI Warrants are now exercisable for one post-Share Consolidation Common Share following the payment of

    an adjusted price of $8.70.

    In addition, there are currently $900,000 principal amount of convertible debentures originally issued by Meta Growth ("Convertible Debentures") listed for trading on the TSXV (TSXV: HITI.DB). As a result of the Share Consolidation, the number of listed Convertible Debentures outstanding was not altered; however, the conversion terms were adjusted in accordance with the terms of the debenture indenture dated November 23, 2018, as supplemented on November 16, 2020, such that Conversion Price is now adjusted to $3.30 per one post-Share Consolidation Common Shares.

    

    About High Tide

    High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The Company is the most profitable Canadian retailer of recreational cannabis as measured by Adjusted EBIDTA,[1] with 85 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its numerous consumption accessory businesses including e-commerce platforms Grasscity.com, Smokecartel.com, CBDcity.com, and Fabcbd.com, and its wholesale

    distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide's strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aphria Inc. (TSX:APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).

    Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

    Cautionary Note Regarding Forward-Looking Statements

    Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements regarding High Tide and its business include, but are not limited to, statements with respect to: the potential listing of High Tide's Shares on Nasdaq, the timing thereof, receipt of regulatory approval for, and the Form 40-F Registration Statement with the SEC. The forward- looking events and circumstances discussed in this press release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting High Tide, including risks relating to the listing of High Tide's securities in the United States, a shutdown of the United States government, the Nasdaq listing not providing High Tide with broadened access to international investors or enhance High Tide's liquidity, the Company not expanding globally, which could result in the Company not having a diversified business platform for growth, the Company not being well positioned to pursue additional opportunities for growth, or such opportunities no longer being available to High Tide, risks associated with the geographic markets in which High Tide operates, risks associated with fluctuations in exchange rates (including, without limitation, fluctuations in currencies), risks associated with the cannabis industry and the regulation thereof, the failure to comply with applicable laws, the failure to obtain regulatory approvals, economic factors, market conditions, the equity and debt markets generally, risks associated with growth and competition, general economic and stock market conditions, risks and uncertainties detailed from time to time in High Tide's filings with the SEC and Canadian Securities Administrators, the COVID-19 pandemic nationally and globally and the response of governments to the COVID-19 pandemic in respect of the operation of retail stores and other risks and many other factors beyond the control of High Tide. Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

    ____________________

    1 Adjusted EBITDA is a non-IFRS financial measure.

    Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. High Tide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

    c View original content to download multimedia:

    http://www.prnewswire.com/news-releases/high-tide-commences-trading-on-consolidated-basis-301290426.html SOURCE High Tide Inc.

    c View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/May2021/13/c4558.html

    

    %SEDAR: 00045217E

    For further information: CONTACT INFORMATION: Omar Khan, Senior Vice President, Corporate and Public Affairs, omar@hightideinc.com, Tel. 1 (647) 985-4401

    CO: High Tide Inc.

    CNW 06:00e 13-MAY-21

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