Perfect. Hi, thank you so much, Alex. And thank you, everybody, for tuning in from all around. It's our debut here at the Stability Conference, and it couldn't have been a better time. We were just two days away from the wonderful earnings we put out on Monday, our Q3 in July, which was a record quarter for us on essentially every metric. We're only two weeks or so away from the announcement back on September 2 of acquiring a medical cannabis company in Germany, which is our largest acquisition to date. A lot's been going on, a lot of fresh news, and I'm really excited to share here with the Stability audience. Speaking of share, let me pull up my screen. OK. Yes, as mentioned, the company is High Tide. That's the parent company. That is the public company.
Stock trades on the NASDAQ since 2021 under the ticker HITI, and it trades under the same ticker on the TSX Venture Exchange since 2018. The parent company is called High Tide. The main operating company, which provides the vast majority of revenue and EBITDA, is called Canna Cabana. Canna Cabana is the largest brand of retail cannabis stores across Canada. We have over 207 stores, you can see here. We're across the country, sort of Ontario to the west. The two largest concentrations of our stores are in Alberta and in Ontario. The company, if you look, take the trailing revenue, so of the four quarters end of July for High Tide, and added the contribution of the acquisition we just closed earlier this month, we're looking at trailing revenue of about $683 million. Everything here is Canadian.
We operate primarily in Canada and now Germany, and we report in Canadian dollars. Our trailing adjusted EBITDA is $58 million, which puts the company at about an 8.8 times pro forma trailing adjusted EBITDA multiple, never mind all the obvious sort of growth ahead. I'd like to start with this summary slide, which is the value proposition of the company, Canna Cabana and obviously High Tide. We're a leading specialty retailer. We're very innovative when it comes to what's in our store, when it comes to the business model. We have the widest footprint. No single brand has a wider footprint than Canna Cabana. Not only are we the broadest in terms of number of stores, our average stores, you can see here, generate more than double the revenue of our peers. That's really because of the business model that we have, which I'll get into.
Same-store sales, obviously the lifeblood of any retailer. Our same-store sales are up 137% since October 2021, where if you compare it to our peers, our peers, the average operator has experienced a 2% decline during the same period, just under four years, whereas we're up 137%. We have 12% market share in those five provinces that we operate, which again is the largest, and it's been moving up very steadily. We see lots of room for more penetration, which I'll get into, particularly in Ontario, which happens to be the largest, most prosperous province. In terms of loyalty membership, our loyalty plan now has 2.15 million loyalty plan members across Canada. That's the free version. A few years ago, we introduced a paid version where customers pay $35 a year upfront to be ELITE members. We now have 115,000 ELITE members of our plan.
Revenue per square foot is $1,735 annually as of last quarter. That's larger than many blue-chip retailers such as Walmart, Target, et cetera. The international opportunities, both Greenfield and M&A, as mentioned, we just planted our flag in Europe with the acquisition of 51% of the equity of Ramexian Pharma, which is one of the leading medical cannabis importers, wholesalers, distributors in Germany. The balance sheet is very strong. The gross debt to trailing attributable adjusted EBITDA is only 1.5 times. We're definitely manageable in terms of the leverage that we have. If anything, there's room to potentially increase that. We've never had more cash than we did at the end of Q3. There's no debt maturities looming for the next two years. We're trading at 8.8 times trailing adjusted EBITDA. Just a quick overview again.
I don't know how much some of the viewers know about the Canadian cannabis market. The market was legalized in October 2018 federally. It's essentially started from zero to now a $5.5 billion market. The five provinces where Canna Cabana operates, again Ontario and to the west, that is a roughly $4.5 billion market in terms of total retail sales, where this is the opportunity that we have to play. That's up 5% year over year, whereas Canna Cabana was up 15% year over year in July 2025. That was the fastest growth rate in 13 months. It is a very sizable market. You can tell by the chart it's growing effectively every single month. We have the largest share and a growing share of this market.
In terms of consumer preferences and what they're buying, you can see the two largest categories that consumers prefer are pre-rolls and dried flower. Effectively, all of dried flower, whether it's pre-rolled or not, is still about 2/3 of sales. Vapes is the second or third largest component at 22%. Then you have edibles, concentrates, topicals, drinks, et cetera. Now coming to our stores, Canna Cabana, as you can see, it's a very open, inviting concept. We invented these fishbowl-type trays where you can go in and actually see the product. What we saw a lot in the beginning and even till now is customers will walk into a cannabis dispensary. They don't necessarily know what they want. All you see are these three TV screens where it's just a bunch of strange names and a bunch of numbers, right?
The price per gram or the price per ounce and the THC percentage. Especially if you don't know what you want, it could be intimidating. It could be very unhelpful. When you walk into our stores, it's open. It's inviting. You get to actually see the product. All across the wall, the four corners, there are accessories, which is where the company actually started. Our Founder, CEO, and President, Raj Grover, founded the predecessor company in 2009, selling consumption accessories for cannabis and other use. We still have about 5,000 SKUs that are our brands that we design, contract, manufacture, import from China, and distribute in our stores at very high margins. That is definitely a leading point of our stores. Our target location is 1,200 to 1,500 square feet. We saw, especially at the beginning of legalization, people thought that these were going to be really large stores.
They wanted about 4,000 square foot stores, thinking that there's going to be a whole influx of soccer moms and new investors, new consumers coming in. That did not happen. Those stores are way too large. Our stores are very efficient. You can see from our $1,735 revenue per square foot, we got the right size. In October 2021, we launched our innovative discount club. Effectively, it's a model that's definitely based on loyalty, and it's based on being a member. When you walk into our store, you can see here, for example, this is a sample product, an ounce of blueberry. You'll see two or three prices. The first price you'll see is the market price. This is the price at which competitors, other companies in the market, will sell the product.
There's the member price, which is usually 10% to 25% cheaper to purchase right now if you are a member. In many cases, there's an ELITE price, where if you're an ELITE member, as mentioned, or you're a paid member, you get access to even lower prices. Given the fact that it's instant savings, we find that over 90% of the transactions in our stores are done by members. Base-level membership, again, is free. All you have to do is give us your information, such as your email, your phone number, and your postal code, so that we can send you the promotions, we can add you to the database, and obviously make sure that you're above age. It's been a huge success. On accessories, where I mentioned that there are accessories in terms of our brand, we contract, manufacture, we import them. There is no middleman.
Here, the discounts can be significantly higher. They can be up to 60%, 70%, 80% off what you would find for a comparable product or the same product prevailing in the market. We launched in November 2022, we launched ELITE. ELITE is the paid version. Members are paying $35 a year all upfront. You get access to greater discounts, flash sales, certain products that you can only buy if you're an ELITE member, half-price delivery, all sorts of giveaways. For example, on April 20, we had a $100,000 giveaway. The winner happened to be an ELITE member. Being ELITE gives you more chances to win. The ELITE membership continues to grow from zero when we started, obviously, in November 2022 to now 115,000 members that are paying us $35 a year.
The last quarter, which we just reported two days ago, which ended July 31, saw the fastest pace of onboarding since we launched the concept. That's despite the fact that we raised the price from $30 a year to $35 a year. It provides a steady stream of revenue for us in terms of the subscription fees. It provides significantly higher loyalty. We see our ELITE members pay more when they come. They shop more often. They have larger basket sizes. They're much more loyal. If you're paying to shop somewhere, the odds that you're shopping somewhere else are significantly decreased. This is perhaps my favorite chart in the presentation. When we launched the discount club model, we said to the market, we are taking a lower gross margin percentage in the bid to drive higher volume.
What we said was it would probably take about 40% same-store sales increases if you required from when we launched in October 2021 to the point where we start to see gross margins being additive in terms of dollars. Everything above that would be, in effect, additive. We said that would take about six months. You can see here the red line is our monthly same-store sales change since we started the program in October 2021. Just six months later, as predicted, it was over 40% same-store sales growth. That outperformance has continued every single month to the point where we're now, as of June, at a same-store sales rate that's up 137% from where we started in October 2021. A fantastic result, especially when you compare it to our peers. The total sales in the five provinces where we operate are up 37%.
Considering there's been a 39% increase in the store count, that means the average operator is actually down 2%, while we've been up 137%. Over the long term, there's no doubt that our model has been a smashing success and really outperforming our peers. Even in the shortest, latest term, we just reported the quarter again ending July. Our same-store sales were 7.4% year over year. That was faster than we did the previous quarter at around 6% and actually our fastest rate in two years. Not only is the same-store sales great on a long-term perspective, but even in the short term, the immediate term, we're setting two-year highs. Outperforming store economics. In Alberta, our average store, as you can see, does about $2.3 million. That's 1.8 times the revenue of our peers. In Ontario, the revenue per store is even more significant.
It's over $3.1 million annually for us, whereas our peers are about $1.2 million, $1.3 million. Again, it's 2.6 times. Nationwide, our stores average $2.6 million of revenue just in terms of product sales. When you compare that apples to apples to our peers, it's $1.3 million. Again, just slightly more than double. Our market share has risen significantly. You can see the complete upward trend since we launched the discount club model. We were about 4% or 5% market share in the five provinces where we operate. Fast forward several years, and we're now at 12%, again, the largest. The target is to reach 15%. The original target was to reach 10%. As we got there, we raised it to 15%. Once we get to 15%, there's a chance we could probably raise it to 20%. Market-leading sales per square foot.
You can see it's $1,735 last quarter annualized for Canna Cabana. That's obviously below Costco, but above other blue-chip retailers such as Walmart, Target, Canadian Tire, Pet Value, Dollarama, etc. Our shrink rate was just 0.2% for last quarter. We run a very lean operation. G&A as a percentage of revenue was just 4.4% over the last year. We have very, very prudent inventory management. Inventory turnaround is about 18 to 20 days. The real estate scenario is something we're also very, very proud of, particularly in Ontario, where when the government legalized adult-use cannabis, they didn't set zoning restrictions between dispensaries. The only zoning restriction you have in Ontario is that you have to be 150 meters away from a school. You can have, and you do have, situations where two dispensaries or more could be very close to each other.
You have these clusters as long as each one is 150 meters from a school. We saw that. Since the beginning, we were able to view that this is not a good strategy to be fighting to the death for one city block downtown with three other cannabis dispensaries. Our approach has always been focused more on the strip malls, on the power centers, slightly more in the suburbs where there's an anchor tenant, such as a Costco, such as a Walmart, such as a major grocery store. You're driving in people from 5, 10 kilometers away, and you're the only cannabis store in that area, in that plaza. Rather than fight to the death with three others for one city block, you have a much wider radius, much larger population, and you're the only one there.
This strategy has been phenomenally successful, especially when you tie that with our unbeatable prices strategy of the discount club model. That's how we get double, triple the average revenue of our peers. The strategy has been very successful, especially the relationships we have with the largest landlords, commercial real estate landlords across Canada. Given the fact that we're on the NASDAQ, we have 207 stores now across the country. We generate lots of profits, lots of EBITDA, free cash flow. They see the cash that we have on our balance sheet, the relationship that we've built over the past several years. We're frequently getting inbound calls when these new tier one locations open up. That's how we've been able to really propagate the brand and propagate the extensive outperformance we have versus our peers. Coming to Germany, as mentioned two weeks ago, we acquired 51% of Ramexian.
Ramexian Pharma is for €26.4 million. They're a leading medical cannabis importer, wholesaler, and distributor. In Germany, it's not adult use just yet. It's medical cannabis. The vast majority of cannabis in Germany isn't grown in Germany. It's imported mostly from Canada and other countries, and it's distributed from these importers to the pharmacies that can sell to the actual end patient. Ramexian generated annualized revenue of €70 million for the six months ended March and €15 million in adjusted EBITDA, again, for the six months ended March. Very meaningful to our results. A very accretive transaction. We acquired the 51% for just 3.64 times the adjusted EBITDA at that time. We have a call and a put option, which doesn't take effect for two years.
After the two-year mark of the closing, either we can exercise our put or call, or they can exercise their put, and we can acquire the remaining interest in Ramexian, again, at a multiple that's very accretive to us at either 3.64 or 4 times. Why was the German market interesting to us? In April 2024, medical cannabis was reclassified from a narcotic to a normal prescription medicine, which meant that doctors could now prescribe it much easier with much less risk of liability. Patients were much more interested in using that as a treatment, and we've seen patient counts skyrocket from about 250,000 to about 900,000 today. We've been watching the market. These are German imports of cannabis flower from around the world. The reclassification was done here when the market was about 8 tons in Q1 2024.
The last data point we have for Q2 2025 was 43 tons. That's a 173-ton annual rate, up to 272% year over year and 15% sequentially. The largest supply of cannabis into Germany is from Canada. We sat back and said, this is a very large business. What's the best way to enter into this market that's growing so phenomenally? We have great relationships with our licensed producers at home in Canada, where we call up licensed producers and say, we do $40 million of business with you. If you're going to be exporting a certain amount of your production to Germany, do it through us, not through a random smaller German distributor that you have no actual long-term relationship with.
What we found was the licensed producers in Canada, the ones that actually grow the cannabis, whereas we only retail it, we don't do any growing, they want to work with us, and they want us to be their pathway to get into Germany. In terms of dollars, you can see it was about, this is the German exports from Canada to Germany, the last three months annualized. Before the reclassification, this was about a $30 million, $40 million annual business. Since the reclassification in April 2024, we're now up to about a $300 million annual rate of exports from Canada to Germany. This is a market that's growing tremendously. As you can see, we think we can take a leading role in this market, which up till now has not been impacted in our financials at all. The transaction, again, with Ramexian Pharma just closed September 2.
It's actually very beneficial because they are actually under-indexed in terms of the cannabis that they source from Canada. They're about 33% of what they sell comes from Canada, whereas the market average is 45%. We think we can put that to about 40% to 50%, potentially even 60%, given the connections that we have with the licensed producers. A record of consolidated results. We're now, so the quarter we just reported two days ago, revenue was $149.7 million. Call it an almost $600 million run rate. That's a record level. The adjusted EBITDA was $10.6 million. That was also a record. Free cash flow was $7.7 million. Very impressive numbers. In terms of free cash flow, as you can see here, historically, we added 30 to 40 stores a year.
In 2023, we sort of read the room in the capital markets, and we saw the hangover from COVID, where it was essentially free money. Stocks only go up, and people weren't necessarily interested in cash flows or cash sustainability. We saw all that start to unwind. The strategy for 2023 is going to be to be the first Canadian cannabis company to generate free cash flow because that really was on investors' minds. Cash balances, cash sustainability, cash flow, not just growth. Luckily, because we had exponential growth in the previous few years, we had 150 stores when we started. We were at the point where we had the scale to generate positive economic outcomes. We said we're going to be the first company to be free cash flow positive in the July quarter of 2023. Five months ahead of schedule, we generated $4 million of free cash flow.
As you can see now, it's been positive effectively ever since. We've proven that our existing basic stores can make money. Investors don't have to worry that we're running out of money or there'll be some sort of financing just to keep the lights on. Once we proved that for several quarters to investors, we've now reaccelerated store growth using the free cash flow that's generated internally. The last year, calendar 2024, the target was to add 20 to 30 stores. We added 29. 28 were built. Only one was bought. The target for this year is to open another 20 to 30. We've already opened 16. There's another three coming probably by the end of this month. There's still about a dozen under construction. We feel very good that we'll be able to be at the high end of the guidance once again.
In this slide, we came up with some blue sky scenarios as to what the company could look like in terms of just domestically in Canada, in terms of a current state and a future state. We have 207 stores today. The target is to exceed 300, but for this purpose, we put 300. That's obviously 45% growth ahead. The average revenue per store, we think we can get some very achievable increase of about 7%. With a little bit of operating leverage in the adjusted margin, there's definitely a path to doubling the brick-and-mortar EBITDA before adding Ramexian on top. Given the track record that we have of building 207 stores and the profitability that we have today, I don't think it's a stretch to see what this company could look like once we're over 300. I think I'll leave it at that.
If there's any questions, Alex, from you or from the audience.
Great. Thank you very much, Bahan, for sharing all of that exciting information. Just as a reminder to folks, they can submit questions using the Zoom Q&A interface at the bottom of the screen. Maybe we can start just off that acquisition. I think we heard a lot about what it adds to the business. Maybe we could talk a little bit about how you think about opportunities for further geographic expansion, either in Europe or how you think about the path and timing of potential U.S. action.
Sure. On Germany, what I can say is we've been watching the German market for some time. It's almost the largest, most populous country in Europe. It's sort of the bellwether. It's the largest economy. A lot of our peers went, frankly, very early. They started investing in Europe in general, whether Germany or elsewhere, in these $100 million facilities, etc. We waited to see that the market was actually real. We saw the law change last year, and we were watching it, and we saw the exponential growth in sales and exports and patient count. We said, OK, now this is the time to get in. Using our model and the leverage of our relationships that we have in Canada, we have the confidence to buy one of the leading players. They have about a 16% market share in Germany right now in terms of tonnage.
The transaction just closed two weeks ago. We do want to walk before we can run. Simultaneously, we are eyeing other markets in Europe, which are showing some signs of becoming real, such as the UK, such as Poland, Czech Republic, Switzerland, etc. Once those markets present viable commercial opportunities, we definitely look to enter those markets. Similarly, in the U.S., there's no debate that it's going to be the largest market around the world. The issue there is the federal illegalities and the fact that the NASDAQ won't allow us to be any plant touching in the U.S. as long as the federal prohibitions are in place. As soon as we get some sort of green light from the NASDAQ, and we are seeing increased momentum, President Trump has already indicated that he's likely to reschedule cannabis.
We'll have to see in the next couple of weeks how these things play out from a regulatory perspective. There's no debate. Our overall ultimate intention is to be a top five player in the U.S. and globally.
Makes sense. Thank you. I just want to come back to something you very briefly touched on. I think you mentioned cannabis accessories. I'm curious how you think about the company's potential for vertical integration around both accessories and even sort of cannabis growth and cannabis sourcing.
Sure. Accessories is in our DNA. That's where the company started, right? When I met the CEO, he had 19 smoke shops across Canada where he was importing and designing, manufacturing overseas his own cannabis and retailing and wholesaling it in Canada. We've got 5,000 SKUs that are our SKUs. There's no middleman. That's why we can often lead with accessories. Even though they're only about 4% or 5% of our four-wall sales, we can lead with accessories, especially if you're elite. If you can buy a $300 bong or vaporizer for $50, but you have to be a member, that's definitely going to incentivize many people to become members, whether it's a base level or elite. Once you're a part of the ecosystem, you're buying cannabis, you're buying it every week, you're buying it every month, you're more likely to be buying it continuously from us.
There are prohibitions, especially in Ontario, about licensed producers and retailers. Licensed producers can't own more than a certain percentage of retailers. We can't be vertical in Canada, or at least Ontario, the way you can in the U.S. What we can do is white label. White label, we have a few different brands of our own white label products. Other licensed producers, partners produce it for us with our brands and to our specifications. We sell those products. One of them is Cabana Cannabis Co. and the other is Queen O’Bud, which we acquired last year. These are really doing really, really well in the market in terms of our sales, in terms of customer acceptance and adoption. They're actually a higher margin because they are products. It will never be fully vertically integrated, at least not with the existing regulatory framework. There definitely are opportunities to add higher margins.
Great. Thank you. Can you talk a little bit about some of the intermediate-term goals for ELITE members in Canada and Germany? This question is from the audience.
Sure. So ELITE, again, we're at 115,000 members across Canada currently. That was up over 100% year over year. The plan is to just keep getting more and more ELITE inventory out there and have customers really appreciate and understand the value of being ELITE. For example, if you can buy a $300 bong for $50 or $150 if you're ELITE, that one transaction pays for several years of ELITE membership. When you're paying to shop somewhere, that loyalty is obviously significantly higher. We see no stopping in the ELITE rates and the ELITE adoption from customers, especially now we're at 207 stores. As we get to 300, we see lots of room still to increase the overall membership and increase the percentage of members that will be ELITE over time.
Great. Thank you. Maybe as the last question, for folks newer to the name, can you sum up the value proposition for investors who might be looking across retail or cannabis and they've come across High Tide?
Sure. As much as we are Canada's largest cannabis company in terms of cannabis sales, we're also positioning ourselves as a retailer. I think if you look at our retail metrics, whether it's dollars per square foot, whether it's same-store sales that are up 137% in the last couple of years, whether it's the shrink rate, the market share of 12% that keeps inching higher effectively every month, High Tide and Canna Cabana is a leading innovative retailer that's trading at only 8.8 times trailing EBITDA, never mind the obvious growth ahead. To this, you take Germany and effectively layer a whole new growth opportunity for us. As you saw the chart, the market is growing exponentially. We bought a leading player, and we're in an unparalleled position to leverage our existing retail licensed producer relationships and turn that into export at best-in-class terms, price, volume, and quality.
Absolutely. It makes sense, and you know, it's been an exciting session. Thank you very much for sharing the story with us. I'd also like to thank everybody for tuning in and spending time with us today.
Perfect. Thanks so much for having me. It's bahan@hightideinc.com if there are any follow-ups from the audience.
Thanks, Bahan.