HITIF Stock: What Is Going on With Cannabis Play High Tide Today?

Canadian cannabis retailer High Tide (OTCMKTS:HITIF) is one step closer to a Nasdaq Exchange listing after the Toronto-traded company consolidated its shares and drastically reduced the number of outstanding common shares.

Source: Shutterstock

Similar to a reverse split, companies typically consolidate their shares to comply with exchange rules on share price minimums. For example, fellow Canadian marijuana stock Hexo (NYSE:HEXO) in October 2020 proposed a 8:1 consolidation after receiving a warning from the New York Stock Exchange. This came after the HEXO stock price fell below $1 a piece for a consecutive 30-day trading period.

“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 CEO 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,” he added.

HITIF Stock Gaining Momentum With Acquisitions

Once HITIF stock starts its Nasdaq trading, it will have some momentum and tailwinds provided by recent acquisitions both in its home country and in the U.S.

Earlier this week, High Tide moved to expand its cannabis consumption product offerings with the acquisition of a majority (80%) stake in Fab Nutrition, a leading online retailer of hemp-derived CBD products.

In late April, HITIF expanded its Canadian retail network with the purchase of a Toronto Canna Cabana store, one of the original 25 cannabis retail stores operating in the province. To date, High Tide has earned over $1 million in royalties from the store.

See also  As 23andMe Flounders, Buying VGAC Stock Looks Like a Terrible Idea

Last month, InvestorPlace’s Joel Baglole listed HITIF stock among his “7 Reddit Penny Stocks Ready To Get High on Cannabis.” The shares were among a roster of stocks of obscure cannabis companies nobody had heard but had seen jumps of 300%, 400% and more as investors who frequent investing subreddits bought shares at a manic pace.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News, McKinsey & Co. and McDonald & Company Investments.

View more information: https://investorplace.com/2021/05/hitif-stock-what-is-going-on-with-cannabis-play-high-tide-today/

View more information: Finance

Leave a Reply

Back to top button