Cannabis firm High Tide splits with CFO, refiles financial statements

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Calgary, Alberta-based cannabis firm High Tide and Chief Financial Officer Rahim Kanji have mutually agreed to part ways.

Kanji’s departure is effective Feb. 28, according to a news release.

High Tide is appointing Sergio Patino as interim CFO, effective Feb. 28.

Patino joined the Canadian company last year as a financial consultant.

The marijuana and CBD retailer also said it refiled its audited financial statements for the fiscal years 2021 and 2022 after uncovering a series of errors.

The company said it does not consider the errors to be material but refiled the documents in the interest of full disclosure.

For instance, High Tide cited “typing errors” for erroneously reporting total assets in its retail segment.

High Tide corrected the figure to read “$241,394,” in thousands of Canadian dollars, as of Oct. 31, 2022.

Some other errors erroneously disclosed forecasted growth of revenue for several of the company’s e-commerce units, including Smoke Cartel and Blessed CBD, which High Tide acquired in 2021 for $8 million and $12.4 million, respectfully.

The company also refiled its management discussion and analysis (MD&A) filing to correct “typographical errors.”

High Tide said the changes “have no material impact on the company’s revenues, earnings or financial position. All other information, including numbers and totals, contained in the Amended Annual Financial Statements and Amended MD&A remains unchanged.”

The corrected financial statements are available here.

Shares of High Tide – which ranked 82nd on Report on Business magazine’s 2021 ranking of Canada’s Top Growing Companies – trade as HITI on the Nasdaq and TSX Venture Exchange.