Good morning. My name is Ina, and I will be your conference operator today. At this time, I would like to welcome everyone to the High Tide First Quarter 2025 Unaudited Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. Mr. Brownlee, you may begin.

Thank you, operator. Good morning, everyone. Welcome to High Tide Inc.'s quarterly earnings call. Please note that all earnings discussed on this call are presented on an unaudited basis. Joining me on the call today are Mr. Raj Grover, President and Chief Executive Officer, and Mr. Mayank Mahajan, Chief Financial Officer. On March 17, 2025, the company released unaudited financial and operational results for the fiscal quarter that ended January 31, 2025. Before we begin, please let me remind you that during the course of this conference call, High Tide's management may make statements, including with respect to management's expectations or estimates of future performance. All such statements, other than statements of historical facts, constitute forward-looking information or forward-looking statements within the meaning of the applicable security laws and are based on assumptions, expectations, estimates and projections as of the date hereof. Specific forward-looking statements include, without limitation, all disclosures regarding future results of operations, economic conditions and anticipated courses of action. For more information on the company's risks and uncertainties related to forward-looking statements, please refer to the company's press release dated March 17, 2025, our latest annual information form, and our latest management discussion and analysis, each filed with securities regulatory authority at sedarplus.ca or on EDGAR at www.sec.gov/edgar, or on the company's website at www.hightideinc.com and which are hereby incorporated by reference herein. Although these forward-looking statements reflect management's current beliefs and reasonable assumptions based on the currently available information to management as of the date hereof, we cannot be certain that the actual results will be consistent with the forward-looking statements in the future. There can be no assurance that the actual outcomes will not differ materially from these results. Accordingly, we caution you not to place undue reliance upon such forward-looking results. For any reconciliation of non-IFRS measures measured and discussed, please consult our latest management discussion and analysis filed on SEDAR+ and EDGAR. It is now my pleasure to introduce Mr. Raj Grover, President and Chief Executive Officer of High Tide. Thank you. Mr. Grover, you may begin.

Thank you, Carter, and good morning, everyone. Welcome to High Tide Inc.'s financial results conference call for the first fiscal quarter that ended January 31, 2025. I'll begin with some high-level comments about the quarter and our strategy before Mayank dives deeper into the numbers. We filed our press release and financials yesterday, and I'm happy with our performance to start 2025. We remain the highest revenue-generating cannabis company in Canada with an annual revenue run rate of approximately $570 million. What a long way we've come from our Q1 2019 results where revenue was just $5 million. We have spent the past six years moving the ball forward, growing the business day in and day out. We have overcome industry ups and downs while remaining hyper-focused on our business. During this time, countless competitors, some of which were much better capitalized than us, filed for creditor protection as we made the moves necessary to ensure that our shareholders came out on top. We have cemented our status as the clear leader in Canadian cannabis retail over this time, and now we are setting the pieces to be a leader in the German medical cannabis market. Perhaps the best indicator of our continued outperformance has been our same-store sales. We identified how to get ahead of our competitors and launched our disruptive and innovative discount club concept in October 2021. From then to December 2024, our same-store sales have increased an incredible 142%, while the average operator has seen a 4% drop in sales during the same time period. Over the long term, we have outperformed regardless of the prevailing market dynamics. On that front, we were very encouraged to see that total industry sales in the five provinces where we operate rebounded to post year-over-year gains in November and December per Statistics Canada data after experiencing declines for eight straight months. We also participated in this improvement, with Canna Cabana posting 5% same-store sales gains year-over-year in Q1, representing the fastest pace of growth in four quarters. Our Cabana Club, which is the most differentiated cannabis loyalty program globally, continues to expand its reach and exceed our expectations. We have now surpassed 1.76 million members in Canada. Over the past 12 months, this base has grown over 33% as we have onboarded 480,000 additional members. Given how encouraged we are with our existing trajectory and our plans for growth ahead, we are increasing our long-term target to now reach 2.5 million Cabana Club members across Canada, up from our previous target of 2 million. We are currently at 194 stores operating across five Canadian provinces with a goal to reach 300 locations in the coming years. ELITE signups were another big success story for us this quarter as we have now exceeded 81,000 members of our paid tier in Canada, up 153% year-over-year. Once again, we set the fastest pace of onboarding paid members this quarter. Finally, we enacted some initiatives which resulted in an acceleration of onboarding members during the past three weeks, which we believe bodes well for future growth to come. Having taken the Cabana Club Global in December, we now have a massive base of 5.66 million members, 85,500 of which are ELITE. Our financial profile continues to be driven mainly by our core bricks-and-mortar retail cannabis segment in Canada, as it represents 95% of our consolidated revenue and it is extremely robust. Bricks-and-mortar revenue was up 17% year-over-year in Q1, representing the fastest pace of growth in five quarters since we began reporting the segment separately. Our market share held steady at 11% of total sales in the five provinces in which we operate during November and December, while Canna Cabana only represented 5% of the number of stores in those provinces. Achieving 11% of market share in dollars was consistent with our performance in fiscal Q4 and above the 10% share during November and December 2023. These are certainly volatile times for the North American economy with sudden tariff announcements regularly proposed and subsequently postponed. This is undoubtedly causing significant volatility among the broader capital markets. While we are not immune to such knee-jerk macro reactions, I would point out that 99% of the sales we generate in Canada and the US don't cross the Canada-US border, which effectively insulates us from tariffs in terms of our underlying fundamental business. While there could be broad-based economic bumps on the road, I remind investors that we believe cannabis is largely a recession-resistant industry. Our adjusted EBITDA was lower this quarter than previous quarters. This was a result of deliberate actions we took as management and telegraphed it to the market, which we believe will make our retail ecosystem stronger in the long term. On the e-commerce side, we took the Cabana Club with its disruptive three-tier pricing model global. We have converted millions of customers who have purchased consumption accessories and CBD into our unified platform as club members. We expect enhanced loyalty and sales will offset the initial margin reduction in these businesses over time, similar to what we've experienced on the bricks-and-mortar side a few years ago. However, there is undoubtedly an initial impact of lower prices and margins which we need to grow through. We are encouraged by the initial trajectory in this segment and retain our expectation that it will be revenue positive in approximately six months and EBITDA neutral in approximately one year. On the bricks-and-mortar side, in late 2023 and early 2024, we proved that if we hit the brakes on growth, we could generate increasing levels of adjusted EBITDA. In calendar 2023, we only opened 13 new stores and showcased the earnings power of our portfolio in subsequent quarters. In calendar 2024, we've reaccelerated growth, opening 29 stores, 28 of which were organic. As mentioned previously, new stores initially act as a drag on consolidated results as there are meaningful upfront costs such as hiring and training staff, and stores take time to build enough of a revenue base to be profitable. New stores built today take longer to ramp up than they did a few years ago. This is due to increased competition and saturation in most areas. The good news, though, is that they are still moving upwards. With our differentiated business model and superior real estate selection strategy, our new stores are still becoming winners just at a slower pace than before. Accordingly, with more than twice as many new stores opened in 2024 versus 2023, the initial drag from these stores is more meaningful than a year ago, yet they are improving every month. We maintain our objective to open another 20 to 30 locations in calendar 2025. We have already opened three and have over a dozen stores currently under development and construction. We expect that this new crop of stores will mature and set the stage for future EBITDA records not too far down the road from now. We continue to favor organic growth as we feel that building from scratch in a cherry-picked strategic location while not paying a multiple on earnings provides great returns for our shareholders. That said, we are always open to entering into accretive and strategic M&A to supplement our organic growth strategy where it makes sense. The increasing pace of new store builds also has an impact on our working capital investments, which was the main driver that turned free cash flow negative this quarter. Total working capital investments mainly ramping up inventory and prepaids while paying down liabilities represented a $4 million use of cash this quarter versus during the prior five quarters, working capital averaged $1.1 million positive source of cash. We expect these working capital flows will even out over time. As a reminder, our business generated $16.5 million of free cash flow over the past four quarters combined, and we continue to expect to be free cash flow positive for the fiscal year. Our White Label strategy is already showing signs of being a big winner for us. As a reminder, we acquired the Queen of Bud brand for only $1 million, and we timed it perfectly as we had started seeing signs that Alberta would finally allow White Label. We have successfully launched many Queen of Bud cannabis and accessories SKUs and have already sold over $0.5 million of our exciting new White Label brand. In fact, our biggest problem has been that sales have gone too well, resulting in products being sold out. We have more than tripled our order sizes for the next production batches as a result. Supply and demand dynamics are finally starting to become more balanced at the national level, which is reducing fears of meaningful price compression which hurt the industry in the past. Given this development, combined with our ever-increasing size and scale, we feel that this is a time to roll out even more White Label products. This should also start to help with margins over time. On the broader gross margin front, we continue to hold the line on pricing. At $33.3 million in Q1, our bricks-and-mortar gross margin dollars have never been higher. Accordingly, we don't feel the urgency to raise prices and encourage marginal operators to renew maturing leases and remain competitors. Longer-term, we see opportunities for margin gains from our growing data analytics business, White Label, ELITE signups and in-store pricing increases. Let's turn to Germany, where we have our sights on being a major player. We have a two-pronged strategy to enter the market there. While coalition negotiations will gain steam in the coming weeks, given the broader result of the national election, we aren't sure what will happen with plans to introduce adult-use. However, we are ready with our academic partners should it proceed. Within medical cannabis, we continue to believe we are positioned in the perfect part of the supply chain. No federally legal company on earth has sold more cannabis than High Tide. The discussions we have had with dozens of Canadian licensed producers, many of whom offered to give us exclusive access to their brands for Germany, have helped reaffirm our view that we are ideally situated to leverage our existing relationships in Canada to become a meaningful player in the German wholesale market for medical cannabis. Since our last conference call, we announced that we will not be pursuing the Purecan transaction in the manner in which we had previously planned, whereby we would be acquiring 51% of its equity for €4.8 million. The recent election has put some uncertainty regarding Purecan's soon-to-be-launched telemedicine business and other considerations made it clear to us that a strategic purchase of equity may not be the structure that is in our shareholders' best interest at this time. We continue to negotiate with Purecan regarding a different structure, which we feel would be more beneficial for all. That said, we intend to enter the German medical cannabis market even if we have to choose another partner. I would like to briefly address the filing made by our competitor, SNDL Inc., last week, indicating that it had acquired 5.4% of High Tide shares. In our opinion, this helps highlight how significantly undervalued our shares are, particularly considering our highly differentiated retail model, which has helped drive our long history of operational outperformance. We have held meetings with our senior management team, our Board of Directors and external experts. Additionally, we have had preliminary discussions with some shareholders, which have expressed support for our management team and strategy. We remain fully committed to the best interest of our shareholders, of which I remain the largest, and are prepared to take any and all actions that may be necessary down the road to protect shareholder value. In conclusion, Q1 was another fantastic quarter for High Tide. We posted solid top-line gains, particularly in same-store sales growth and White Label while meaningfully growing the size of our loyalty plan across Canada and globally. I expect that the investments in new stores and disruption we are causing in the e-commerce sector will yield greater returns for shareholders in the years to come. On that front, we continue to get more and more attention from institutional investors, and I'm incredibly pleased to see High Tide named as a top 50 TSX Venture company again this year. It is great to see our team's hard work being acknowledged by the broader capital markets community. Thanks again to our talented team that makes it all happen. With that, I'll turn it over to Mayank for his comments and a deeper dive into the numbers.

Thank you, Raj, and hello, everyone. Q1 was another great quarter for High Tide in meeting our objectives and executing on our future growth strategy. Let's take a deeper dive into the numbers. It was another record-breaking quarter for High Tide. Revenue for Q1 was an all-time high of $142.5 million, up 11% year-over-year and 3% sequentially, reaching an annual run rate of approximately $570 million. Our brick-and-mortar segment led the way, up 17% year-over-year. With our plans to add another 20 to 30 stores in Canada this year and our planned entry into the German medical cannabis market, I'm excited for more growth throughout the year and beyond. As Raj mentioned, our same-store sales were very strong in Q1, up 5% year-over-year, representing its fastest pace in four quarters. From October 2021 to December 2024, our same-store sales have risen a truly impressive 142%, while the average operator has experienced a 4% decline during the same period. In December, our average store achieved an annual revenue run rate of $2.7 million, which is more than double the average peer revenue of $1.3 million in the province where we operate. In Ontario, our largest market and the focus of our future expansion, our outperformance was even more pronounced. Excluding newer stores that have been open for six months or less, which are still ramping up, the average Canna Cabana store was on a $3.5 million annual revenue run rate in December. In contrast, the average of our peers in Ontario was just $1.3 million. In addition to merchandise sales, our Cabanalytics data and advertising platforms continue to expand. With our growing footprint, increased sales volumes and operational outperformance, interest in our retail ecosystem is growing. In Q1, the Cabanalytics Business Data and Insights Platform advertising revenue and other revenue, including management fees, interest income and rental income was a record $11.3 million, up 49% year-over-year and 4% sequentially. Consolidated gross margins were 25% in Q1, below the 28% we reported in Q1 last year and 26% sequentially. This was a result of two factors. First, the resurgence of the illicit market continues to impact our brick-and-mortar business in certain municipalities such as Regina, Toronto, and Ottawa. Second, we launched the Cabana Club loyalty program across all our e-commerce businesses during the quarter. A primary feature of this initiative is unbeatable prices, and we continue to expect that higher volumes in the coming quarters will offset the lower gross margin percentage similar to the successful trajectory Cabana Club enjoyed in Canada. Turning to expenses. Salaries and wages represented 12.3% of revenue in Q1, consistent with the prior year and prior quarter, holding steady despite the increase in new stores where we have to hire teams four to six weeks before opening. General and administrative expenses represented 4.6% of revenue in Q1, up very modestly year-over-year and sequentially. Adjusted EBITDA was $7.1 million for the quarter. As Raj mentioned, this was down 32% year-over-year and 14% sequentially due to the initiatives taken to grow the businesses in the coming quarters, namely accelerating the pace of store growth and taking the Cabana Club model across our global e-commerce businesses. Due to unusually high working capital investments this quarter, free cash flow was negative $1.9 million in Q1. We have cautioned that working capital can cause noise in any given period and that investors need to focus on this metric on a longer period. We continue to expect to be free cash flow positive for the fiscal year. And we note that our trailing free cash flow at the end of Q1 was $16.5 million, up 45% from our trailing free cash flow of $11.4 million a year ago. There were some moving parts with our debt during the quarter, which helped fortify our balance sheet. We drew the final $5 million tranche of our second lien debentures and paid off the $13 million of debt we had due on December 31, 2024. As of today, our total debt stands at just $26.4 million, which is 0.8 times our trailing adjusted EBITDA. Additionally, we have no upcoming maturity for 2.5 years. In closing, it was another great quarter for High Tide. We continue to expand our base businesses, generate record revenue, move upwards on market share and develop new areas of growth for our company. Thanks to our amazing team, without whom, none of this would be possible. With that, I will now turn the call over to the operator to open the line for the questions-and-answer session. Thank you.

Thank you. Your first question comes from the line of Matt Bottomley from Canaccord Genuity. Please go ahead.

Good morning, everyone. Thanks for the question. Raj, I was hoping you could provide more details on what has changed in Germany recently. You mentioned a strong telemedicine strategy there, and I’m curious whether the proposed regulations you referenced have undergone any amendments. Additionally, while I assume the answer is no, I wonder if any of this discussion involved the likelihood of adult-use considerations. I understand the medical-only opportunity still has significant growth potential based on the number of registered patients, which would attract new entrants into that market.

Good morning, Matt. Thank you for your question. We remain committed to entering the German medical cannabis market. As I mentioned earlier, we hold a strong position in the value chain. You're correct that following the recent national election in Germany, the CDU is in power, albeit with a minority, and they are currently forming a coalition government. Negotiations are ongoing, but shortly after the election, they expressed concerns about the telemedicine platform, specifically how it's being operated. Patients can only fill out an online questionnaire without a virtual meeting with a physician, which has generated dissatisfaction. The telemedicine platform has been crucial for medical cannabis enrollments in Germany, and the current government could potentially halt those operations. A significant part of the value we assigned to Purecan was tied to their telemedicine business launch. Consequently, and after further investigation, we decided it was in the best interest of our shareholders not to invest €4.8 million for a 51% stake in Purecan. Instead, we are exploring alternative structures that may work better for us. We are not solely focused on Purecan; we are considering all opportunities in Germany, which might lead to a larger and more favorable prospect for us. We promise to keep you updated on developments in this area. We are fully committed to entering the German medical cannabis market. Regarding recreational cannabis, we believe we are ahead of our competitors. We have established an academic relationship in Germany and are prepared to apply for a scientific research pilot project for recreational stores. The outcome remains uncertain as we await further information from Germany, but we are ready if it moves forward. Meanwhile, there are no discussions suggesting that medical cannabis will be reclassified as a narcotic, so we anticipate that will remain unchanged. We see a very promising opportunity in the German medical cannabis market.

Got it. Thanks. And just one more for me. I wanted to pivot just more to Canada, more on the dynamics you're seeing from consumer preferences or behavior in the stores. You had 5% same-store growth in the quarter, which is very strong. I'm just wondering, because it looks like your market share is pretty consistent, how much of that is maybe changes in basket sizes or things that you can see, or share with us more on the consumer side? And then, within that context, you had mentioned that your membership estimate has gone up to 2.5 million. So, maybe just the assumptions on there? I know 40 million Canadians, but you have to net out people younger than 19. That would, rough math, seem like that might represent 7% or 8% of adults in Canada, which would be a very nice market share, I'd imagine higher than the 11% that you're at now. So, just curious if you can kind of reconcile those estimates with maybe a market share number over the longer-term. Thanks.

Yeah, absolutely, Matt. So, look, longer-term ambitions in Canada is to reach at least a 15% market share. We feel we can get to 15% market share and even breach it. I was very excited and pleased to see our same-store sales growth hit 5% this quarter. Remember, we've grown since the launch of the discount club model in October of 2021, we've grown 142% in same-store sales, while the average operator has declined 4%. So, you can clearly see the delta between our business and practically other competitors in the country. In terms of same-store sales and how we're looking at the market right now, as you know, Matt, we had eight consecutive months of negative growth in Canada, and then November and December turned positive for the industry, and Canna Cabana was a big participant in that as well. I've said it many times, including my prepared remarks today, that cannabis is generally recession-resistant. So, we are not feeling the impact of inflation on the cannabis side of things. Absolutely, we feel that on the accessories and the CBD side of things, which is more discretionary spending. Remember, when times are not great, people are still drinking alcohol and using their cannabis as they need to cope up with these times. So, we don't feel that there will be an impact. And as I also mentioned, with Trump tariff talk on again, off again, it doesn't impact 99% of the business because both on the US and Canadian sides, we are 99% domestically sourced and domestically sold. So, we're also hedged and protected on that side. Given our same-store sales trajectory and the strength of our business model and despite the resurgence of the illicit market, like I've been mentioning for the last few quarters, we feel that we can absolutely get to 15% in the long term. Our brick-and-mortar business is very, very strong. And I'd like to remind listeners that this is 95% of our business. So, 95% of our business remains extremely strong with us heading towards that 15% market share. Remember, we are building stores organically. We're not buying EBITDA in the market. We're creating the best value we can for our shareholders. So, stores take time to ramp up. But when these stores ramp up, we practically paid about $300,000 to build these stores and another $100,000 in working capital. We feel if we remain on this track, we will create the best type of opportunity for our shareholders, and any M&A will be incremental to this growth. We can add another 20 to 30 stores, and we should be starting to head towards that target of 15% market share in the not-too-distant future.

Got it. I'll jump in queue. I'm just curious as a last thing, though, if there are any assumptions that go into that 2.5 million membership estimate? I know you're already at 1.7 million now, but just anything you can share on that would be great. And I'll leave it there. Thanks.

Yeah. We've had excellent growth of our Cabana Club. I think we've grown year-over-year by 480,000 members. So, you can say that we could reach 2.5 million in the next two years, potentially a bit sooner, Matt.

Thank you. And your next question comes from the line of Frederico Gomes from ATB Capital Markets. Please go ahead.

Hi, good morning. Thanks for taking my questions. Congratulations on another great quarter. Regarding Germany, Raj, you mentioned the intention to enter the market with Purecan or consider finding another partner. Is there a timeline you're targeting for this? Do you plan to move fairly quickly, given the rapid growth in the market over the next few months? At what point would you stop discussions with Purecan and pursue another option? How should we view the timeline for this?

So, look, Fred, I cannot express my excitement enough for the German medical cannabis market. So, we're absolutely looking forward to entering that market. But we want to do it in the right way. We want to get the right partner, whether it's Purecan or somebody else. I can confirm that we are in conversations with other groups as well beyond Purecan. And we may have even a bigger, better, more exciting opportunity to enter the German medical cannabis market, like I was just telling Matt. So, stay tuned on that. This will not be months and months. Maybe it will be a couple more months. But like I said, Fred, it's extremely important that we select the right partner on the German side of things because in Canada, there's no other federally legal company that has sold more cannabis than High Tide has. We have $1.5 billion of cannabis that we've sold to consumers since legalization. And our COGS line gets to $368 million a year. So, you can imagine how much leverage and our network and relationships are so strong in Canada that we don't want to mess up this opportunity. We want to do it the right way. So, maybe it's a couple more months, but it's not going to be months and months and quarters ahead.

Perfect. Thanks for that. And then, second, just on the impact of tariffs. I know that you mentioned 99% of your business doesn't cross the US-Canada border, but just curious about China and potential impact on accessories because I believe that you buy some of your accessories from China just to bring them. So, any tariff impact there?

No, we feel like in Canada, there's been no tariff impacts. Again, 1% does not cause us that harm, and that, too, we procure it from internal brokers. So, we're not directly impacted by tariffs. So 1% is not going to make a difference at all. So, we feel the tariff impact on Canna Cabana and High Tide is very, very minimal. Even our CBD business is entirely domestically produced, procured, et cetera. Our accessories, 99% of our accessories that are coming into Canada as well are coming into Canada. So, we don't have that US-China impact at all. So, I feel from that perspective, Fred, we are totally protected.

Thank you very much. I'll hop back into queue.

Thank you. And your next question comes from the line of Andrew Semple from Ventum Financial. Please go ahead.

Thank you. Good morning, and congrats on the Q1 results here. First question will just be going back to market conditions in Canada. It seems like retail sales growth has accelerated in the months of November and December, at least according to Statistics Canada data. While there is no HST break applied directly on cannabis products, I'm wondering if you thought that the HST break applied to other product categories might have had a positive impact on cannabis sales and cannabis demand during those months as consumers had more disposable income. What's your thoughts on that? And what have you seen in your stores since that HST break has ended?

Hi Andrew, good morning. Thank you for your question. I'm not sure if the HST break was the reason for the acceleration in our stores. We believe that the eight-month period of negative growth before November and December 2024 was heading in the wrong direction and was due for a correction, which might have contributed as well. As more legal stores open, albeit at a slower rate, that also affects the market, which continues to expand. I think there's still significant potential for growth in the legal market. We estimate the Canadian market could reach $7 billion, while we're currently around $5.5 billion. I can't specifically attribute changes to the HST break, but I mentioned to Matt and Fred earlier that cannabis generally tends to be resilient during economic downturns. Despite concerns over inflation and economic challenges, I don't expect cannabis to be affected in the same way. However, I should note that the resurgence of the illicit market is a real concern and could change things. So far, the positive momentum is continuing into our current quarter.

Great. That's helpful to hear. My next question is about the e-commerce segment. I'm curious, aside from the launch of the Canna Cabana Club program in the international e-commerce segment, were there any significant impacts on that segment during the quarter? That segment did experience a notable decline in revenues year-on-year, so I wanted to know if there were any other one-time items that might have affected it.

No. So, look, we are encouraged by the initial trajectory of member sign-ups. ELITE grew in the last six weeks. ELITE grew by 50%. And remember, it's only been a few months since we launched it and seasonality is a big factor. Remember, December is our biggest month, Andrew, for consumption accessories and CBD sales in the US. And both have been basically in the seasonally strongest period, and then our launch came at the same time. So, to assess that in February, March, it's a bit too early. And that is definitely because December and March or December and February cannot be compared. But again, the number of international ELITE members increased by 50% in the past six weeks, which is a very good sign for us. But absolutely, there's a lot of growth required to get to that revenue and EBITDA breakeven points and then beyond. But remember, the strategic value of e-commerce is huge, Andrew. We bought these assets. I said it from day one, we purchased Grasscity, Smoke Cartel, and all of these assets to convert them into cannabis platforms eventually when federal legalization takes place. Nothing has changed in terms of that thesis. In fact, the only thing we've done is we've actually unified and simplified our entire ecosystem, taking the Cabana Club global. We made our entire retail ecosystem even stronger. Sure enough, in the short term, we feel some adjusted EBITDA headwinds, but this can change very quickly with our entry into Germany or e-commerce platforms starting to ramp up. And again, we're not married to anything. If we wanted to sell e-commerce down the road in a year or six months or 10 months, we have the option to do that. And we can bring $2 million, $3 million in EBITDA back, but we also feel that we may have a serious retail opportunity on our hand with the three-tier pricing strategy we have for the Global Cabana Club, which could really pay dividends. So, these are just short-term headwinds for long-term opportunities. And we still feel that our brick-and-mortar cannabis business is very, very robust. It's exploding, to be honest. It's doing very, very good. So, we can actually go and focus solely on the brick-and-mortar business in a year, or we can see if our e-commerce platforms ramp up, and we start making money there, then we have a double whammy, Andrew.

Great. Okay. Glad to hear the update on that strategy. I'll get back into queue. Thanks for taking my questions.

Thank you. Your next question comes from the line of indiscernible.

Thank you, operator, and thank you to everyone for your interest and continued support for High Tide. We're very proud of what we've achieved this quarter and remain excited about the road ahead. With that, I'll ask the operator to close the line. Have a great day, everyone.

Thank you. And this concludes today's call. Thank you for participating. You may all disconnect.