The Company wishes to address directly the concerns that have been raised, both publicly and through direct communications to management, regarding unusual trading patterns in High Tide common shares. The Company takes these concerns seriously. The board of directors and senior management have been actively monitoring and reviewing trading data in connection with the Company's common shares, including trading activity around the Company's earnings release dates.

Over the course of more than the last ten consecutive quarters, the Company has delivered exceptional financial results almost always ahead of the expectations of analysts which cover its shares. Despite consistently positive after-hours market reactions to those results, the Company has observed a recurring pattern in which the closing price of its common shares on the following regular trading day has been lower than the prior day's closing price. The Company, together with its market maker, has been monitoring trading patterns, position reports, and related data in an effort to understand the source and nature of this activity.

Based on the information gathered to date, the Company has reasonable grounds to believe that certain trading activity in its shares may not reflect normal market forces, and that certain conduct may be contrary to applicable securities laws in Canada and the United States. The Company intends to take decisive and proactive steps to fully investigate this matter.

Steps Being Taken

The Company intends to retain qualified forensic investigators and industry specialists with experience in securities market structure and trading surveillance. These experts will conduct a thorough and independent review of the trading activity in High Tide common shares, with particular focus on activity surrounding the Company's earnings releases and other material disclosure events.

The Company intends to provide the findings of that investigation, together with any supporting evidence, to the applicable regulatory authorities in Canada and the United States, including securities commissions and self-regulatory organizations with jurisdiction over trading conduct. The Company will cooperate fully with any regulatory inquiry that may arise from this matter.

High Tide's management and board of directors are committed to protecting the interests of all shareholders and to ensuring that the market for the Company's common shares operates in a fair, transparent, and efficient manner consistent with the expectations of investors and the requirements of applicable law.