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  5. HITI: Lots of talk lately about the MJ sector given Trump's recent announcements. [High Tide Inc.]
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Q: Lots of talk lately about the MJ sector given Trump's recent announcements. It has been almost 3 years since you spoke about HITI so would appreciate an update.

By all means, wait until January for this and have a great holiday.
Asked by karl on December 22, 2025
5i Research Answer:

The cannabis industry tends to see a few 'pops' every several months or more historically, usually amid news headlines of regulatory changes. It is not quite clear if this recent jump in prices and sentiment will last, but the broader cannabis industry has slowly been turning a corner over the past year, with several stocks not making new lows and instead just trading sideways or slightly up. In fact, HITI has been on a steady uptrend since 2023, and forward analyst estimates for sales growth are decent. Its margins have been improving, nad it is nearly profitable. It generates a small level of free cash flow, and it continues to expand and add new Canna Cabana stores. It is considered one of the largest store networks in Canada for cannabis, and we think it can continue to perform well, but the sector will likely have lots of volatility and headlines can be both positive and negative contributors.