Q4 2025 High Tide Inc Earnings Call

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High Tide

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Q4 2025 High Tide Inc Earnings Call

HITI.V

Friday, January 30th, 2026 at 4:30 PM

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Raj Grover: EBITDA record and still generated meaningful free cash flow. None of this could have been done without our amazing team that works hard day in, day out, to make this all happen. I'd like to share a tidbit that many investors may not be familiar with, which I believe really illustrates the strength of our team and the can-do attitude we all have as High Tiders. In October, there was a government employee strike in British Columbia, which crippled the ability of cannabis stores to get product to serve customers across the province. The result was devastating for retail sales, with total industry sales down 55% in BC versus September, even after benefiting from an extra day. In contrast, our team was able to work the supply chain, leverage our long-standing relationships, and find ways to keep product on the shelf.

Mayank Mahajan: As a result, our annual impairment testing, we determined that an impairment of CAD 23.6 million was required, relating to goodwill and other intangible assets allocated to this segment. While we are not happy with this impairment, the silver lining is that all intangibles and goodwill relating to the e-commerce segment have been written off. Further, as Raj outlined, we are cautiously optimistic regarding the prospect for a rebound in this segment's performance in the future, particularly on the CBD side, given the proposed regulatory changes in the United States. Additionally, there was a CAD 23.5 million loss on change in the fair value of derivative liability in the quarter. This was as a result of two items, both of which, while positive in nature, resulted in paper losses on our financials for IFRS purposes.

As a result, our annual impairment testing, we determined that an impairment of CAD 23.6 million was required, relating to goodwill and other intangible assets allocated to this segment. While we are not happy with this impairment, the silver lining is that all intangibles and goodwill relating to the e-commerce segment have been written off. Further, as Raj outlined, we are cautiously optimistic regarding the prospect for a rebound in this segment's performance in the future, particularly on the CBD side, given the proposed regulatory changes in the United States. Additionally, there was a CAD 23.5 million loss on change in the fair value of derivative liability in the quarter. This was as a result of two items, both of which, while positive in nature, resulted in paper losses on our financials for IFRS purposes.

Yeah, good morning. Neil uh thank you very much for your question. Um, so look the Portugal issue. Definitely impacted our Q4 results. Uh, and while things are getting better, uh it'll have some impact on q1 as well. Uh, despite that we still had record adjusted ia uh you know, compared to the normal cycle of business revenue and gross margins. Uh, we know that uh that you know, we're going to have to plan for this. And we have done that. We had close to 1617 tons sitting in Portugal Neil. When we when we first acquired the business, we're down to about half of that or a little bit less than half of that and things are picking up pace. Uh like we said December was the 2nd highest month in tonnage after June June was 2.9. Tons December was 2.6 tons. Uh and you know, we we've had to sell this biomass which is like 3 4 weeks away from expiry, that is how it's getting released, uh, from Portugal where export permits are being issued, uh, but informat the authority, there is only releasing a biomass that is closer to expiry. So once we're behind this, uh, this part

First, our share price rose 44% during the Q4 fiscal quarter, which resulted in a charge relating to the value of the warrants we have outstanding. Second, and significantly more meaningful in terms of the financial impact, we reforecasted the outlook ahead for Remexian, which we believe has improved since the closing of the acquisition, given the traction we are already seeing in potential synergies, including leveraging High Tide's relationships and ability to source product at lower costs than Remexian could have independently. Given the improved projections for Remexian EBITDA, the corresponding put option liability their shareholders have for the remaining 49% was deemed to be worth more resulting in a non-cash fair value change of derivative liability charge on our P&L.

Raj Grover: ... resulting in a non-cash fair value change of derivative liability charge on our P&L. Adjusting for these non-cash charges, net income was positive CAD 1.4 million, or positive CAD 0.02 per fully diluted share. While the above two items have to be reported for IFRS accounting purposes, in our view, the flows of physical cash tell a more accurate picture of how the underlying business is performing. High Tide generated CAD 1.3 million of free cash flow in Q4. While this was below the CAD 5.9 million in Q4 last year and CAD 7.7 million last quarter, this was mostly due to this quarter requiring a working capital investment of CAD 2.3 million, while the other periods benefited by working capital being a source of cash of CAD 3.5 million, and CAD 2.4 million, respectively.

Even mid Q2 things could get very interesting. We've already sourced about 5 6, tons ourselves since we purchased from maxxeon, but none of that biomass actually makes it to Germany until March 1st week and the reasoning behind this is that we have to qualify every single 1 of our LPS with the processors and that process takes 2 to 3 months. And the supply chain, when it's first initially set up, it does take 3 to 4 months to just set it up. Uh, but what we've done, Neil to avoid this issue, uh, you know, Maxon was very dependent on Portugal. They were working with various processes in Portugal, I believe 5, uh but all of them face the music when they slow down happened because of a couple Bad actors. So what we've done is, we've opened up our supply chain through Malta. The first shipment should hit end of February or beginning of March, we've opened up our supply routes to Czech Republic, or check here. Uh, we've already received a couple of shipments from check here, um, that we were able to reroute from Portugal. And now, we've also opened up things in Germany directly, which will be opened up in March. So, we've got 3 additional supply chain routes open. Uh,

Yeah, absolutely. Neil look, we've had 4 consecutive quarters of margin increases in our core bricks and motor segments, which generates 92% of our Revenue, 4 straight quarters of margin increases and it's absolutely being driven by Elite sales. It's being driven by same store sales growth. It's being driven by a white label portfolio and just the strength of our brand overall, in Canada. I mean, I was so impressed that we grew uh, you know, our same store sales grew 5.5% again and our bricks and motor revenues up 15% year-over-year. I mean, this is mature state in Canada, we're talking about, we're talking about, you know, 7 7 and a half years after legalization. And we, we can still grow our brick and motar revenue in 1 of the most competitive, cannabis markets in the world, at 15%, a year over year and that's 92% of our business. I will take this any day. Uh, so we remain very bullish. The more time we are in the market. The most stores, we plant our brand is so important and so powerful that I can literally place it provided, we have the best location which we never sacrificed.

On, I can literally paste it in place it in the middle of competition, and the juice flow starts, flowing back to us. Um, so I don't think that changes at all. Uh, Neil we hit 9.4%, uh, as brick and mortar adjusted IBA margin, which was a new record for us, uh, and our our, uh, brick and motor is on an annual run rate of even of 56 million now. So, you know, uh, exponential opportunity, still lies ahead because we can get to 350 stores. Uh minimum I think we will exceed that number. We continue to raise this bar we said we're going to have 250 stores and we raised it to 300 stores. Now we're at 350 stores. Uh I feel that we can just keep going uh because our business is so strong and we can literally replicate this model uh, in the rest of the the the Cannabis world as well. When the opportunity comes because we've rehearsed and we've practiced this model really well and there's nothing like this that exists anywhere else. Now 1 main thing, that's driving, all of this success is our Cabana Club. Cabana Club reached 2.5 million members in

Raj Grover: And you know, we've had to sell this biomass, which is like 3, 4 weeks away from expiry. That is how it's getting released from Portugal, where export permits are being issued. But Infarmed, the authority there, is only releasing a biomass that is closer to expiry. So once we're behind this particular issue of existing inventory in Portugal, I see green pastures ahead. I'm ultra excited about this business. You know, this may continue. We're already procuring biomass here, 30, 40 percent less than what Remexian was doing. So the opportunity is endless, especially when adjacent markets to Germany are opening up. So you're absolutely right. Q1, we're gonna feel similar pressures. It'll trickle into a couple more months into Q2, but then I think we have super green pastures ahead from Q3 onwards.

And you know, we've had to sell this biomass, which is like 3, 4 weeks away from expiry. That is how it's getting released from Portugal, where export permits are being issued. But Infarmed, the authority there, is only releasing a biomass that is closer to expiry. So once we're behind this particular issue of existing inventory in Portugal, I see green pastures ahead. I'm ultra excited about this business. You know, this may continue. We're already procuring biomass here, 30, 40 percent less than what Remexian was doing. So the opportunity is endless, especially when adjacent markets to Germany are opening up. So you're absolutely right. Q1, we're gonna feel similar pressures. It'll trickle into a couple more months into Q2, but then I think we have super green pastures ahead from Q3 onwards.

Normal cycle of business revenue and gross margins. Uh, we know that, uh, you know, we're going to have to plan for this. And we have done that. We had close to 16 17, tons, sitting in Portugal nil. When we, when we first acquired the business, we're down to about half of that or a little bit less than half of that and things are picking up pace. Uh, like we said, December was the second highest month in tonnage after June June was 2.9. Tons December was 2.6 tons. Uh, and you know, we we've had to sell this biomass which is like 3 4 weeks away from expiring. That is how it's getting released, uh, from Portugal where export permits are being issued, uh, but informat the authority, there is only releasing a biomass that is closer to expiry. So, once we're behind this, uh, this particular issue of existing inventory. In Portugal. I see Green Pastures ahead. I'm also excited about this business. You know, this, this may continue. We're already procuring biomass here, 30 40% less than what Dian was doing. So, the opportunity is endless, uh, especially when adjacent markets to Germany are opening.

Raj Grover: In fact, end of Q2 or even mid-Q2, things could get very interesting. We've already sourced about 5, 6 tons ourselves since we purchased Remexian, but none of that biomass actually makes it to Germany until March first week. The reasoning behind this is that we have to qualify every single one of our LPs with the processors, and that process takes 2 to 3 months. The supply chain, when it's first initially set up, it does take 3 to 4 months to just set it up. But what we've done, Neil, to avoid this issue, you know, Remexian was very dependent on Portugal. They were working with various processors in Portugal, I believe 5, but all of them faced the music when this slowdown happened because of a couple bad actors. So what we've done is we've opened up our supply chain through Malta.

In fact, end of Q2 or even mid-Q2, things could get very interesting. We've already sourced about 5, 6 tons ourselves since we purchased Remexian, but none of that biomass actually makes it to Germany until March first week. The reasoning behind this is that we have to qualify every single one of our LPs with the processors, and that process takes 2 to 3 months. The supply chain, when it's first initially set up, it does take 3 to 4 months to just set it up. But what we've done, Neil, to avoid this issue, you know, Remexian was very dependent on Portugal. They were working with various processors in Portugal, I believe 5, but all of them faced the music when this slowdown happened because of a couple bad actors. So what we've done is we've opened up our supply chain through Malta.

Raj Grover: The first shipment should hit end of February or beginning of March. We've opened up our supply routes to Czech Republic or Czechia. We've already received a couple of shipments from Czechia that we were able to reroute from Portugal, and now we've also opened up things in Germany directly, which will be opened up in March. So we've got three additional supply chain routes open. It just makes me more bullish on the business. You know, we, we paid 3.64x for this business, and Portugal was one big reason we were able to negotiate such a low multiple for this business. The growth that this business is demonstrating is exponential, and for us to get it at that multiple is highly, highly attractive and accretive for our shareholders. This is an extremely short-term blip.

And the supply chain management first initially set up. It does take three to four months to just set it up. Uh, but what we've done, Neil, to avoid this issue—uh, you know, Roxson was very dependent on Portugal. They were working with various processors in Portugal, I believe five. Uh, but all of them faced the music when the slowdown happened because of a couple of bad actors. So what we've done is we've opened up our supply chain through Malta. The first shipment should hit end of February or beginning of March. We've opened up our supply routes to the Czech Republic, or Czechia. Uh, we've already received a couple of shipments from Czechia, um, that we were able to reroute from Portugal. And now, we've also opened up things in Germany directly, which will be opened up in March. So, we've got three additional supply chain routes open. Uh, that just makes me more bullish on the business. Uh, you know, we paid 3.64 times for this business, and Portugal was one big reason we were able to negotiate such a low multiple for this business. The growth that this business is demonstrating is exponential, and for us to get it at that multiple is highly, highly attractive and accretive for our shareholders. And this is a

Yes, absolutely. So what's happening here is that the smaller players spread you know the the the independence with the 1-off stores or a couple of stores are definitely facing the music and and they're phasing out of the market and not, renewing their leases. But remember these were bad quality locations to begin with. These were Street Front stores. Uh, you know, not strategic at all. In the middle of the action with 10 other operators, those locations just don't work. So we have to just stay on the sidelines and let that all play out, uh, and let people get out, uh, on the other hand, you know, I think this year would be, would be very special for high tide. You know, I don't want to put the card ahead of the horse, but we are speaking with, uh, you know, with blocks of 40 50 and maybe even larger. Uh, so we can like, you know, we're still committing to 20 to 30 stores or

Yeah, absolutely. Neil look, we've had 4 consecutive quarters of margin increases in our core bricks and motor segments, which generates 92% of our Revenue, 4 straight quarters of margin increases and it's absolutely being driven by Elite sales. It's being driven by the same store sales growth. It's being driven by a white label portfolio and just the strength of our brand overall in Canada. I mean, I was so impressed uh that we grew uh, you know, our same store sales grew 5.5% again and our bricks and motor revenues up 15% year-over-year. I mean, this is mature state in Canada, we're talking about, we're talking about, you know, 7 7 and a half years after legalization. And we are, we can still grow our brick and motar revenue in 1 of the most competitive, cannabis markets in the world, at 15%, a year over year and that's 92% of our business. I will take this any day. Uh, so we remain very bullish. The more time we are in the market. The more stores, we plant, our brand is so important and so powerful that I can literally place it provided, we have the best location, which we never sacrificed.

And we can literally replicate this model in the rest of the cannabis world as well, when the opportunity comes, because we've rehearsed and we've practiced this model really well, and there's nothing like this that exists anywhere else, Neil. One main thing that's driving all of this success is our Cabana Club. Cabana Club reached 2.5 million members in Canada, up 45% year-over-year, and the fastest pace of growth in four quarters. Same with Elite. Elite membership reached 151,000 in Canada, up 107% year-over-year, and it's the fastest pace of onboarding since inception. So, you know, we keep talking about this every single quarter, and this is going to continue. I don't think, you know, we're going to be stopped in this regard.Our club is exploding. To grow 45% year-over-year after seven years of legalization is very, very heartening.

We said we're going to have 250 stores and we raised it to 300 stores. Now, we're 350 stores. I feel that we can just keep going uh because our business is so strong and we can literally replicate this model uh, in the rest of the the the Cannabis world as well. When the opportunity comes because we've rehearsed and we've practiced this model really well. And there's nothing like this that exists anywhere else new 1 main thing, that's driving, all of this success is our Cabana Club. Cabana Club reached 2.5 million members in Canada up, 45% year-over-year, and the fastest pace of growth in 4 quarters, same with elite elite membership reached 151,000 in Canada, up 107% year-over-year and it's the fastest pace of onboarding since Inception. So, you know, we, we keep talking about this every single quarter. Um, um, and this is this is going to continue. I don't think uh, you know, we're going to be stopped in this regard. Our club is exploding to grow. 45% year-over-year up to 7 years of legalization is very, very heartening.

Good morning, Bill. You hear me? I do. Yes, I hear you. Raj. Okay. Okay perfect. Um, so good morning Bill. I was just saying that was great chatting with you at icr and here are uh uh, conversation continues. Um, so Bill, what we do is we put a lot of emphasis into bartender engagement, 1 of the most important things, although we are discount retailer and, you know, people people sometime, uh, uh, you know, think about discount and they, they think that discount retail cannot give a quality experience. The Cabana level experience is opposite of that, we are all of it. We're beautiful stores. We're open refreshing layout, retail focused, and our butt tenders are very engaged with our customers. So we give them a robust level of training. Not only in the physical stores where we hire them up to 1 month in advance, uh, than when they actually start their position. We we put them in multiple stores, just to get them, exposure of customers and, and, and, and learn about sales and real times. And, you know, just to train them for 2 to 3 days in their new location. We do that, and we have a cabana learning portal online that they must.

Good morning, Fred. Thank you so much for your question. So look, you know, 7 years into legalization. Of course, stores are taking longer to ramp up because uh, things are competitive in Canada, right? We've we've got a first find an area where we don't operate currently then we got to find the best location in that area because you can almost count on it that there's going to be other competitors around it. If you go back to 2021, we were ramping up you know twice as fast as we are ramping up right now. But 1 thing you can be rest assured that we are going to ramp up to our average run rates and the weaker operators with the weaker locations are all going to start phasing out. And we're starting to see this now. Uh, Fred, you and I have talked about it for years that, you know, when it's the when is the impact really going to be felt it's, it's being felt now Alberto has experiencing negative stories growth outside of us. We grew 10% in a year while the overall Province experience negative growth. We were all of the growth in Ontario, Canada's largest Province, where the

Rest of the industry remained flat. So, um, you know, even though all of this is happening, because our model is so strong, our same-store sales just keep on chugging along. Uh, a lot of our customers refer us by word of mouth to their friends, their family, because, you know, they're seeing tremendous value and it's just not available anywhere else in Canada. And if anyone tried to replicate our model, which many have tried and failed, you know, we're so far ahead now and we're so far dominating now, uh, I don't think anyone will be able to catch up with us. I am genuinely surprised that, you know, same-store sales in Q3 were 7.7%, 5.5% right now in Q4. You know, if it was a bit more timid than this, I wouldn't mind it, but this is just excellent. So I think this will continue, Fred. I don't see signs of it stopping right now.

Yeah, so look, I have the numbers for January were slightly lower than December, but were much higher than September October and November, right? So things that definitely turned we. We know it's going in the right direction. Now, however, we do have some remaining biomass in Portugal, and this biomass is being sold in its single digit gross margins. Imagine selling cannabis after 10 months and still being able to sell it over costs. That's how how much an amazing distribution Network, or maxxeon has. And what they've built. So we are very bullish, if I could get them 4 tons of cannabis, guess what? They're selling 4, tons of cannabis. And we're very sure that we can get cannabis, gross margin, profile medical cannabis, distribution profile, north of 23/24. I I think it'll be the high mid 20s in the second half of the year when we get all this fresh biomass. Uh, we've already purchased close to 5 tons, uh, here in Canada. And I am very excited about the prices that we are procuring them at roxian is not seen such pricing, and this is just the beginning.

Uh, every producer wants to work with us, we actually also have uh, some Partners from UK. Uh, we reached out to all of them and now we are in regular contact with them. And what we're hearing is, they they can't believe the prices that we are offering them and we're going to start selling into the UK, as well. It won't happen immediately again, there's supply chain qualifications that we need which takes 2 to 3 months to set it all up, but we are very sure that we can do it even before the second half of this fiscal year. Maybe even in Q2, uh, make our first sale in the UK market. And once again, what we have in our hands in Canada is attractive for people in Poland, uh, you know, for groups in the UK or Germany, France, and Spain are going to open up, and we want to be that preeminent distributor in Europe. So, getting past the noise of q1, remember this? Multiple was already baked in. We paid just 3.64 times. Uh, for this business, it was worth a lot more, but we paid that because of this, Portugal slowdown, so we got to get through it. Uh, and also the looming German law change and we disclosed all of this to our investors, you know, prior to buying the business.

Raj Grover: Okay. Okay, perfect. So good morning, Bill. I was just saying that it was great chatting with you at ICR, and here our conversation continues. So Bill, what we do is we put a lot of emphasis into budtender engagement. One of the most important things, although we are a discount retailer, and, you know, people sometimes, you know, think about discount, and they think that discount retail cannot give a quality experience. The Cabana-level experience is opposite of that. We are all of it. We're beautiful stores, we're open, refreshing layout, retail-focused, and our budtenders are very engaged with our customers. So we give them a robust level of training, not only in the physical stores, where we hire them up to one month in advance, than when they actually start their position.

Uh I'll be your focused on m&a and Canada and not in the US and you know, even given that we scheduling is at the doorstep. You can see the multiples at where us msos are trading at. It's all quite miserable to be honest Michael. Um, so, you know, m&a can, it can't really pick up steam. When multiples of that depressed for large US operators. Thankfully, we're busy in Canada, we're still playing here, uh, but you know, like I said, multiple us operators have reached out some of them, very, very large, uh, and they're very interested in seeing what we can do together. And, you know, when Kaneka Banner turns on its m&a engine in the US, I think we'll be able to roll up and consolidate more players, uh, than the US operators that that are just, just have regular retail platforms cuz we offer something very different and we offer something very attractive and it's not gone unnoticed with even some of the very large players in the US. So, um, given that the

Yeah, so look, I have the numbers for January. We're slightly lower than December, but we're much higher than September of October and November, right? So things that definitely turned we. We know it's going in the right direction. Now, however, we do have some remaining biomass in Portugal and this biomass is being sold in its single digit gross margins. Imagine selling cannabis after 10 months and still being able to sell it over costs. That's how how much an amazing distribution Network, or maxxeon has. And what they've built. So we are very bullish, if I could get them 4 tons of cannabis, guess what? They're selling 4, tons of cannabis. And we're very sure that we can get cannabis, gross margin, profile medical cannabis, distribution profile. North of 23/24, I think it'll be the high mid 20s in the second half of the year when we get all this fresh biomass.

Uh, make our first sale in the UK market. And once again, what we have in our hands in Canada is attractive for people in Poland, uh, you know, for groups in the UK or Germany. France and Spain are going to open up, and we want to be that preeminent distributor in Europe. So, getting past the noise of Q1, remember this? Multiple was already baked in. We paid just 3.64 times, uh, for this business. It was worth a lot more, but we paid that because of this Portugal slowdown, so we got to get through it. Uh, and also the looming German law change. We disclosed all of this to our investors, you know, prior to buying the business. You don't buy a business for 2, 3, 4, 6 months, you buy a business for the long term, and I cannot tell you how bullish I am on the prospects of a Mexican long term. That's perfect. Thank you, guys. Good luck.

Good morning, Eric. Thank you so much for your question. So, Germany, you know, we just planted our flag with the first scan of Cabana store. Uh, we had some uh, uh, certain permitting issues, which are getting course corrected and and the store should be live again in 1 week or so or about 2 weeks. Uh, but remember that store is only selling accessories. The stores are the sales are going to be very minimal in that regard. That was more symbolic. That was us more getting native with the market. And it was also secured because we've applied for these pilot projects uh where we could secure retail licenses, but the chances of those pilot projects going through our very slim. So I wouldn't want to get anybody's hopes up. So the numbers we expect to yield out of these stores are very minimal in nature. Our real focus in Germany remains uh roxian but because the Canada brand is starting to get native in Germany. I think that will lead to an added Advantage going forward. Uh when we are able to start building retail stores in Germany, which will always remain the Forefront of our strategy. Remember we are cannabis retailers first the

Good morning, Michael. Thank you so much for your question. So look, yes, we are seeing a lot of inbound interest from US operators who are recognizing our leadership positioning here in Canada and, uh, exploring ways to partner up with us in the US, you know, given the apparent regulatory shift. We think rescheduling news could be out, uh, next month. So we're getting pretty close to it. And look, we're evaluating all options across the spectrum and how we can work together, from licensing agreements to full-blown mergers. Um, although it's still early days and, you know, we're proceeding with caution, things are looking fantastic here in Canada and we're looking forward to getting our German operation running full speed. So we've got a great thing going. As much as we want to be a meaningful player in the US, we don't want to rush, so we will take our time to evaluate potential structures and partners while keeping an eye on how regulations develop, uh, and, you know, make sure that we select the most optimal move at the right time for our shareholders. Just like I believe we did in Germany. Um, the other factor regarding rescheduling, which I think has flown under the radar, in terms of

You know, we were our team was expecting, if this grows at 20% a year that's a wow. Number we're talking about, you know, 50 almost 50% growth year-over-year. So, uh, I don't think that slows down. Uh, I I did, in my prepared remarks. I did talk about how potent our brand is how daily users of cannabis are choosing us. 49% of them, how we are. So, dominant nationally or the most recognized brand, we have 29% recognition nationally, which is twice as much higher uh, than our next closest competitor. So, you know, you can see the Delta there and then our our our our our, our program is so unique to our elite membership, where the Loyalty Loop is getting even more stickier. We have 151,000 Elite members in Canada now, which also continues to grow as the fastest pace of onboarding since Inception, it's up 107% year-over-year and elite member. Tends to come shop more often with us, their baskets are much larger. Think about this. You know, when you're an Amazon member and you paying uh you know your your Prime membership fees or you're paying for

Raj Grover: ...Good morning, Eric. Thank you so much for your question. So Germany, you know, we just planted our flag with the first Canna Cabana store. We had some certain permitting issues which are getting course-corrected, and the store should be live again in one week or so, or about two weeks. But remember, that store is only selling accessories. The stores, the sales are going to be very minimal in that regard. That was more symbolic. That was us more getting native with the market, and it was also secured because we've applied for these pilot projects, where we could secure retail licenses. But the chances of those pilot projects going through are very slim, so I wouldn't want to get anybody's hopes up. So the numbers we expect to yield out of these stores are very minimal in nature.

Raj Grover: Good morning, Eric. Thank you so much for your question. So Germany, you know, we just planted our flag with the first Canna Cabana store. We had some certain permitting issues which are getting course-corrected, and the store should be live again in one week or so, or about two weeks. But remember, that store is only selling accessories. The stores, the sales are going to be very minimal in that regard. That was more symbolic. That was us more getting native with the market, and it was also secured because we've applied for these pilot projects, where we could secure retail licenses. But the chances of those pilot projects going through are very slim, so I wouldn't want to get anybody's hopes up. So the numbers we expect to yield out of these stores are very minimal in nature.

Us more getting native with the market. And it was also secured because we've applied for these pilot projects, uh, where we could secure retail licenses, but the chances of those pilot projects going through are very slim. So I wouldn't want to get anybody's hopes up. So the numbers we expect to yield out of these stores are very minimal in nature. Our real focus in Germany remains, uh, Roxian, but because the Canna Cabana brand is starting to get native in Germany, I think that will lead to an added advantage going forward, uh, when we are able to start building retail stores in Germany, which will always remain the forefront of our strategy. Remember, we are cannabis retailers first. The medical cannabis distribution is very, very exciting and I think we're going to be fantastic players with a significant market share in that business. Uh, but the Canna Cabana concept is so unique that we just wanted to enter, uh, a market like Germany, plant our flag there, and just wait for the right time and the right opportunity to come. So we're already positioned in that market.

Yes, so look, uh, Eric. I'm so pleased. I was just uh, uh, talking to Neil about this that, you know, our Cabana Club is absolutely exploding. We've had 2.5 million members in Canada up, 45% year-over-year. And this was not the pace. That, you know, we were our team was expecting if this grows at 20% a year that's a wow. Number we're talking about, you know, 50 almost 50% growth year-over-year. So, uh, I don't think that slows down. Uh, I I did, in my prepared remarks. I did talk about how potent our brand is how daily users of cannabis are using us, 49% of them, how we are. So dominant nationally or the most recognized brand, we have 29% recognition nationally, which is twice as much higher uh, than our next closest competitor. So, you know, you can see the Delta there and then our our our our our, our program is so unique to our elite membership, where the Loyalty Loop is getting even more stickier. We have 151,000 Elite members in Canada now, which also continues to grow at the fastest pace of onboarding since Inception. It's up,

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