Stocks to Watch: High Tide Inc. (CSE:HITI) (OTCQB:HITIF) Receives “BUY” Rating

High Tide

The Alberta-based, retailed-focused High Tide Inc. (CSE:HITI) (OTCQB:HITIF) has spent more than a decade growing its brand presence and strengthening its integrated value chain. This has given the company a highly enviable position in a crowded market.

Now, due to a substantial, recently secured credit facility and a red-hot stock, cannabis investors are presented with a rare buying opportunity. In fact, TradingView’s Technical Analysis recently awarded HITI a “BUY” rating, primarily based on a number of positive moving averages.

The company seems poised to rise, and early investors might soon find themselves happy as a clam at High Tide.

High Tide Secures $10 Million Credit Facility for Ontario Expansion

On January 7, High Tide Inc. (CSE:HITI) (OTCQB:HITIF) announced that it entered a loan agreement with Windsor Private Capital to secure a credit facility of up to $10 million.

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The facility provides the company with immediate access to an initial $6 million. This allows the company to carry out its corporate objectives for 2020, which includes expanding into Ontario.

As the largest cannabis market in Canada, Ontario offers cannabis retailers an incredible opportunity to establish themselves as market leaders.

High Tide’s expansion into the province comes at a time when Ontario is officially opening up its cannabis retail market. This lucrative frontier is the perfect place for new High Tide storefronts, which already serve a sizable portion of Alberta’s cannabis market. 

As of November, the company has a total of 30 retail locations across Canada. Of these, 26 are in Alberta, one is in Saskatchewan, and three are in Ontario. 

HITI’s Performance and Potential Creates Serious Buying Opportunity 

When the company first went public, it received $10 million through an investment from Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB).

Following the investment, High Tide Inc. (CSE:HITI) (OTCQB:HITIF) shares quickly rose from $0.33 to a high of $0.51 in February 2019. Sadly, like most of the cannabis industry, the stock has steadily lost value since then. Earlier this week, it was at an all-time low of $0.16.

Following the securing of the credit facility, however, HITI jumped to a high of $0.24 and closed at $0.21 on very strong volume of 2.43 million shares traded. Its highest in months. The closing share price represents a 31.25% increase in value in just two days. It seems like the tide is definitely changing and investors are looking to ride this wave.

Given the market’s hardships, cannabis investors can’t afford to let an opportunity like High Tide Inc. (CSE:HITI) (OTCQB:HITIF) go to waste. Keep checking this space for updates from this exciting company. 

Featured image: Canva

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