• The Company closes the year as the top revenue-generating cannabis company in Canada
• The Company also announces the opening of its 150th Canna Cabana location

 

CALGARY, Alberta–(BUSINESS WIRE)–High Tide Inc. (“High Tide” or the “Company”) (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, is pleased to reflect on its key milestones for 2022, a year that saw record growth for the company. From becoming the top revenue-generating cannabis company in Canada to being recognized as one of Canada’s “Top Growing Companies” for the second year in a row by the Globe and Mail, to the growth of its unique Cabana Club loyalty program to over 900,000 members, to entering a new lucrative vertical in the United States with the launch of cannabis seed sales, the Company continuously demonstrated that it is committed to the further diversification of its ecosystem while remaining a leader in bringing innovation to the cannabis retail landscape.

High Tide’s 2022 Highlights:

• Total revenue for the nine months ended July 31, 2022, increased to CAD$248.6 million from CAD$127.3 million for the nine months ended July 31, 2021. Concurrent with the release of the Company’s fiscal third quarter results, it disclosed that annualizing the revenue generated in the month of August 2022 results in a current revenue run rate exceeding CAD$400 Million.  High Tide has become the top revenue-generating¹ cannabis company in Canada, according to New Cannabis Ventures².
• Generated same-store sales increases of 46% during the three months ended July 31, 2022, compared to the same quarter in the prior year and 18% compared to the prior quarter.
• Delivered rapid growth in its unique Cabana Club loyalty program, which is the largest bricks-and-mortar cannabis loyalty program in Canada with over 900,000 members.
• Launched Cabana Elite, the first-of-its-kind cannabis paid membership loyalty program in Canada.
• Entered the British Columbia market, with six stores operating at the end of 2022.  The Company also anticipates the organic opening of its location in Kamloops, BC, imminently. 
• Added 45 new Canadian stores, both organically and through accretive acquisitions, closing the year at 150 stores across Ontario, Manitoba, Saskatchewan, Alberta and British Columbia.
• Achieved a top 10 ranking in the diversified industries stocks category by the TSX Venture 50 for 2022.
• Ranked 21st out of 430 in the Globe and Mail’s annual ranking of Canada’s “Top Growing Companies” with 1970% revenue growth over three years. This marks the second year in a row the Company has earned a spot on this prestigious list.
• Closed a $19 million senior secured credit facility with connectFirst Credit Union Ltd., with an initial 5-year term, at connectFirst’s floor interest rate.
• Rolled out 175 proprietary Fastendr Kiosks across 120 Canna Cabana stores.
• Launched its Cabana Cannabis Co. white-label offerings in the Canadian provinces of Ontario, Manitoba and Saskatchewan.
• Entered a new lucrative vertical in the United States with the launch of cannabis seed sales through its subsidiaries GrassCity and Smoke Cartel.
• Launched first-of-its-kind exclusive annual ‘420’ prize package car giveaway valued at over $42,000.  
• Increased international customer database to over 3 million, including approximately 2.4 million customers in the United States through its ancillary cannabis e-commerce platforms.
• Grew its World Vision sponsorship support to 300 children internationally after committing to sponsoring two additional children for every new store that opens in Canada.
• Increased its total employment footprint from just over 900 to over 1,400 during 2022 in order to manage growth.

COMPANY TO OPEN NEW STORE IN ETOBICOKE, ONTARIO

The Company also announced today that its Canna Cabana retail cannabis store located at 170 Queen Street North, Etobicoke, Ontario, will begin selling recreational cannabis products and consumption accessories for adult use tomorrow, December 31, 2022. This first Etobicoke store is Canna Cabana’s 150th in Canada and the 49th in Ontario. Anchored by two major discount retailers, this store is located within a major commercial plaza in the inner Toronto suburb of Etobicoke, containing a national arts and crafts retail chain. It is also a short drive away from Sherway Gardens, a large mall in the Greater Toronto Area that brings in customers from surrounding municipalities, like Mississauga, Canada’s seventh largest city, which do not permit bricks-and-mortar cannabis sales within their boundaries.

“Once again, I would like to thank our loyal customers, team members and our shareholders for their ongoing support as we delivered yet another landmark year for High Tide, despite geopolitical, supply chain and economic challenges worldwide. With their support, we were able to execute our business plan, which saw us emerge as the top revenue-generating cannabis company in Canada. Our rapid revenue growth and positive adjusted EBITDA continue to expand as we leveraged the strengths of our diversified cannabis ecosystem and experienced strong growth in our Cabana Club loyalty program, which now sits at over 900,000 members. I am optimistic that this continued growth in both revenue and customer loyalty will be recognized by the capital markets as macro-level global challenges outside of our control ease through 2023,” said Raj Grover, President and Chief Executive Officer of High Tide.

“Despite most cannabis companies facing fierce challenges across the cannabis value chain, we have continued on our forward trajectory, delivering on our goals which included opening 150 locations in 2022 through laser-focused execution. The results we’ve yielded in Canada over the last couple of years give me confidence that our team will continue to execute and deliver in large and exciting markets like the United States and Germany as relevant laws and regulations materialize. I have said it before and want to re-iterate now that our ambition is to become a top-five MSO with significant retail operations beyond North America. We continue to strengthen our business with every passing year and look forward to delivering yet another year of solid growth and significant market share gains heading into 2023,” added Mr. Grover.

ABOUT HIGH TIDE

High Tide is a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest non-franchised cannabis retail chain in Canada, with 150 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. The Company is also North America’s first cannabis discount club retailer, under the Canna Cabana banner, which is the single-largest cannabis retail brand in Canada, with additional locations under development across the country. High Tide’s portfolio also includes retail kiosks and smart locker technology – Fastendr^™. High Tide has been serving consumers for over a decade through its established e-commerce platforms, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com and more recently in the hemp-derived CBD space through Nuleafnaturals.com, FABCBD.com, BlessedCBD.co.uk, BlessedCBD.de, and Amazon United Kingdom, as well as its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide was featured in the Report on Business Magazine’s ranking of Canada’s Top Growing Companies in both 2021 and 2022 and was named as one of the top 10 performing diversified industries stocks in the 2022 TSX Venture 50^™. High Tide’s strategy as a parent company is to extend and strengthen its integrated value chain while providing a complete customer experience and maximizing shareholder value.

For more information about High Tide, please visit www.hightideinc.com and its profile pages on SEDAR at www.sedar.com and EDGAR at www.sec.gov.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accept responsibility for the adequacy or accuracy of this release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief or assumptions as to the outcome and timing of such future events.

The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the Company’s business objectives and milestones and the anticipated timing of, and costs in connection with, the execution or achievement of such objectives and milestones (including, without limitation, proposed acquisitions and store openings); the Company’s future growth prospects and intentions to pursue one or more viable business opportunities; the development of the Company’s business and future activities following the date hereof; expectations relating to market size and anticipated growth in the jurisdictions within which the Company may from time to time operate or contemplate future operations; expectations with respect to economic, business, regulatory and/or competitive factors related to the Company or the cannabis industry generally; the market for the Company’s current and proposed product offerings, as well as the Company’s ability to capture market share; the Company’s strategic investments and capital expenditures, and related benefits; the distribution methods expected to be used by the Company to deliver its product offerings; the competitive landscape within which the Company operates and the Company’s market share or reach; the performance of the Company’s business and the operations and activities of the Company; the Company adding the number of additional cannabis retail store locations the Company proposes to add to the Company’s business upon the timelines indicated herein, and the Company remaining on a positive growth trajectory; the Company making meaningful increases to its revenue profile; the Company completing the development of its cannabis retail stores; the Company’s ability to obtain, maintain, and renew or extend, applicable authorizations, including the timing and impact of the receipt thereof; the realization of cost savings, synergies or benefits from the Company’s recent and proposed acquisitions, and the Company’s ability to successfully integrate the operations of any business acquired within the Company’s business; and the Company continuing to grow its online retail portfolio through further strategic and accretive acquisitions.

These statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. A discussion of some of the material risk factors applicable to High Tide can be found in the “Non-Exhaustive List of Risk Factors” section in Schedule A to the Company’s current annual information form, as such factors may be further updated from time to time in its periodic filings, available at www.sedar.com and www.sec.gov.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION

This press release may contain future oriented financial information (“FOFI”) within the meaning of Canadian securities legislation about annualized revenue and current revenue run rate, which is all subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above “Cautionary Note Regarding Forward-Looking Statements”. FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement. FOFI does not purport to present the Company’s financial condition in accordance with IFRS as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as of the applicable date. However, because this information is highly subjective and subject to numerous risks, readers are cautioned not to place undue reliance on the FOFI as necessarily indicative of future results. Except as required by applicable law, the Company undertakes no obligation to update such FOFI.

¹Ranking relates to companies reporting in CAD

²Based on reporting by New Cannabis Ventures as of November 14, 2022. For the New Cannabis Ventures’ senior listing, segmented cannabis-only sales must generate more than US$25 million per quarter (CAD$31 million) – for full details, see: https://www.newcannabisventures.com/cannabis-company-revenue-ranking/

Contacts

INFORMATION

Media Inquiries
Omar Khan
Senior Vice President – Corporate and Public Affairs
High Tide Inc.
omar@hightideinc.com

Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
High Tide Inc.
vahan@hightideinc.com

LADERA RANCH, Calif.–(BUSINESS WIRE)–SmartStop Self Storage REIT, Inc. (“SmartStop” or the “Company”), a self-managed and fully integrated self storage company, announced today that it has increased its owned and managed Canadian self storage portfolio to 22 locations. The 22^nd property in the portfolio is the newly developed facility located in the Town of Aurora in the Greater Toronto Area of Ontario.

Located at 87 Goulding Avenue, the approximately 94,000-square-foot facility is a joint venture development with SmartCentres. The new Class A, four-story climate-controlled facility includes approximately 890 units and is well-situated across from a central shopping plaza anchored by several big-box retailers. The location features easy access to Highway 404 and serves the communities of Newmarket, Pleasantville, White Rose, Cherry, Vandorf, and Preston Lake.

“When we entered the Canadian self storage market in 2010 with our first acquisition in Ontario, it was an exciting opportunity to expand the SmartStop brand to an attractive self storage market that was ripe with opportunity,” said H. Michael Schwartz, Chairman and CEO of SmartStop. “Twelve years and 22 locations later, our commitment to the Canadian market is stronger than ever. We look forward to expanding SmartStop’s footprint in Ontario and other provinces and using the SmartStop platform to further increase stockholder value.”

About SmartStop Self Storage REIT, Inc. (SmartStop):

SmartStop Self Storage REIT, Inc. (“SmartStop”) is a self-managed REIT with a fully integrated operations team of approximately 450 self storage professionals focused on growing the SmartStop® Self Storage brand. SmartStop, through its indirect subsidiary SmartStop REIT Advisors, LLC, also sponsors other self storage programs. As of December 29, 2022, SmartStop has an owned or managed portfolio of 179 operating properties in 22 states and Ontario, Canada, comprising approximately 124,000 units and 14.2 million rentable square feet. SmartStop and its affiliates own or manage 22 operating self storage properties in the Greater Toronto Area and surrounding areas, which total approximately 19,000 units and 1.9 million rentable square feet. Additional information regarding SmartStop is available at www.smartstopselfstorage.com.

Contacts

David Corak
VP of Corporate Finance

SmartStop Self Storage REIT, Inc.

949-542-3331

IR@smartstop.com

This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated December 3, 2021, to its short form base shelf prospectus dated April 22, 2021.

CALGARY, Alberta–(BUSINESS WIRE)–High Tide Inc. (“High Tide” or the “Company”) (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, announced today that further to its press release dated September 29, 2022, the Company has completed its acquisition (the “Acquisition”) of 100% of the equity interest of 1171882 B.C. Ltd., operating as Jimmy’s Cannabis Shop BC (“Jimmy’s”), resulting in High Tide’s acquisition of two retail cannabis stores currently operated by Jimmy’s in British Columbia (the “Stores”) for $5.3 Million (the “Transaction”). The Stores are located at 1225 Cranbrook Street North, Cranbrook and 1543 Victoria Street, Prince George.

The Cranbrook store is located near the base camp of the Kootenay Rockies and is within a short drive of award-winning golf courses and nature trails. It is also situated within a commercial complex that includes a prominent local grocery store as well as a multinational hotel chain. The Prince George store is situated within the largest city in northern British Columbia, which is also close to the crossroads of provincial highways 16 and 97. The store itself is located within a commercial plaza including a national pharmacy chain and a major discount clothing retailer.

The closing of the Transaction brings High Tide’s nationwide store count to 149, including six in British Columbia. The Company also anticipates the organic opening of its location in Kamloops, BC, imminently. 

For the trailing four months ended May 31, 2022, the Stores generated annualized revenue of $5.4 Million and annualized Adjusted EBITDA¹ of $1.0 Million. The purchase price represents 5.25x annualized Adjusted EBITDA for the trailing four months ended May 31, 2022.

TRANSACTION DETAILS

The Acquisition was completed pursuant to the terms of a share purchase agreement, dated September 28, 2022 (the “Acquisition Agreement”). High Tide acquired 100% of Jimmy’s for 2,595,533 common shares of High Tide (each, a “High Tide Share”) valued at $5.3 Million (the “Share Consideration”), on the basis of a deemed price of C$2.0365 per High Tide Share. The purchase price is subject to a post-closing working capital adjustment provision, to address any increase or decrease of working capital, inventory or cash estimated as of the closing date. The closing of the Transaction remains subject to final approval from the TSX Venture Exchange (“TSXV”). Pursuant to the Acquisition Agreement, 70% of the High Tide Shares issued are subject to a four month hold.

ABOUT JIMMY’S

Jimmy’s strives to find a balance between being a boutique and a neighbourhood store using a heritage theme that is both reflective of the individual communities in which it does business and chronicling Jimmy’s cultural relationship with cannabis over the past 100 years. At Jimmy’s, we love to have fun, but we also have the knowledge, background, and training to ensure clients can purchase responsibly.  

ABOUT HIGH TIDE

High Tide is a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets. The Company is the largest non-franchised cannabis retail chain in Canada, with 149 current locations spanning across British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. The Company is also North America’s first cannabis discount club retailer, under the Canna Cabana banner, which is the single-largest cannabis retail brand in Canada, with additional locations under development across the country. High Tide’s portfolio also includes retail kiosks and smart locker technology – Fastendr^™. High Tide has been serving consumers for over a decade through its established e-commerce platforms, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com and more recently in the hemp-derived CBD space through Nuleafnaturals.com, FABCBD.com, BlessedCBD.co.uk, BlessedCBD.de, and Amazon United Kingdom, as well as its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz. High Tide was featured in the Report on Business Magazine’s ranking of Canada’s Top Growing Companies in both 2021 and 2022 and was named as one of the top 10 performing diversified industries stocks in the 2022 TSX Venture 50^™. High Tide’s strategy as a parent company is to extend and strengthen its integrated value chain while providing a complete customer experience and maximizing shareholder value.

For more information about High Tide, please visit www.hightideinc.com and its profile pages on SEDAR at www.sedar.com and EDGAR at www.sec.gov.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. The use of any of the words “may”, “should”, “could”, “intend”, “expect”, “believe”, “will”, “anticipate”, “plan”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company’s current belief, estimates, or assumptions that while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies.

The forward-looking information and forward-looking statements contained herein include, but are not limited to, statements regarding: the closing of the Acquisition at the purchase price announced herein and receipt of final TSXV approval of the Acquisition; the Company’s business objectives and milestones and the anticipated timing of, and costs in connection with, the execution or achievement of such objectives and milestones (including, without limitation, proposed acquisitions and store openings); the Company’s future growth prospects and intentions to pursue one or more viable business opportunities; the development of the Company’s business and future activities following the date hereof; expectations relating to market size and anticipated growth in the jurisdictions within which the Company may from time to time operate or contemplate future operations; expectations with respect to economic, business, regulatory and/or competitive factors related to the Company or the cannabis industry generally; the market for the Company’s current and proposed product offerings, as well as the Company’s ability to capture market share; the Company’s strategic investments and capital expenditures, and related benefits; the distribution methods expected to be used by the Company to deliver its product offerings; the competitive landscape within which the Company operates and the Company’s market share or reach; the performance of the Company’s business and the operations and activities of the Company; the Company remaining on a positive growth trajectory; the Company completing the development of its cannabis retail stores; the Company’s ability to obtain, maintain, and renew or extend, applicable authorizations, including the timing and impact of the receipt thereof; and the Company’s ability to successfully integrate the operations of any business acquired within the Company’s business.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements. A discussion of some of the material risk factors applicable to High Tide can be found in the “Non-Exhaustive List of Risk Factors” section in Schedule A to the Company’s current annual information form, as such factors may be further updated from time to time in its periodic filings, available at www.sedar.com and www.sec.gov. Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.

Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company’s expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION

This press release may contain future oriented financial information (“FOFI”) within the meaning of Canadian securities legislation about annualized revenue and annualized Adjusted EBITDA, which is all subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above “Cautionary Note Regarding Forward-Looking Statements”. FOFI is not presented in the format of a historical balance sheet, income statement or cash flow statement. FOFI does not purport to present the Company’s financial condition in accordance with IFRS as issued by the International Accounting Standards Board, and there can be no assurance that the assumptions made in preparing the FOFI will prove accurate. The actual results of operations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented, and such variation may be material (including due to the occurrence of unforeseen events occurring subsequent to the preparation of the FOFI). The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as of the applicable date. However, because this information is highly subjective and subject to numerous risks, readers are cautioned not to place undue reliance on the FOFI as necessarily indicative of future results. Except as required by applicable law, the Company undertakes no obligation to update such FOFI.

¹Adjsted EBITDA is a non-IFRS financial measure.

Contacts

INFORMATION

Media Inquiries
Omar Khan
Senior Vice President – Corporate and Public Affairs
High Tide Inc.
omar@hightideinc.com

Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
High Tide Inc.
vahan@hightideinc.com

Global freight forwarder recommits to reach net-zero carbon emissions by 2035

ITASCA, Ill.–(BUSINESS WIRE)–Supply chain solutions leader AIT Worldwide Logistics reaffirmed its commitment to protecting the environment as a signatory of The Climate Pledge. Co-founded by Amazon and Global Optimism, The Climate Pledge is a commitment signed by nearly 400 companies across 34 countries to reach net-zero carbon emissions by 2040—a decade ahead of the Paris Agreement’s goal of 2050. AIT aims to meet this goal even faster, by 2035.

“AIT is proud to reinforce our commitment to sustainability and join a community that will share knowledge, ideas, and best practices to combat climate change,” said AIT Executive Vice President and CIO, Ray Fennelly. “As a signatory of The Climate Pledge, we look forward to taking collective action to achieve net-zero carbon emissions by 2035, five years ahead of the pledge’s 2040 target. This goal not only aligns with our core values but will also create a better planet for our teammates, customers, partners, and the communities where we live and work—for generations to come.”

As a signatory to The Climate Pledge, AIT agrees to measure and report greenhouse gas emissions on a regular basis, implement decarbonization strategies in line with the Paris Agreement through real business changes and innovations, including efficiency improvements, renewable energy, materials reductions, and other carbon emission elimination strategies. The company also agrees to neutralize any remaining emissions with additional, quantifiable, real, permanent, and socially beneficial offsets to achieve net-zero annual carbon emissions.

AIT developed its own environmental sustainability initiatives in alignment with the United Nations’ Sustainable Development Goals, with an aim to support sustainable consumption and production and to combat climate change and its impacts. To achieve these goals, AIT plans to reach net-zero carbon emissions status by 2035, through both emission reduction practices and carbon offset purchases.

Internally, AIT teammates also oversee emissions, waste, and energy management processes and programs, including a companywide commitment to recycling and paper reduction. Additionally, AIT uses its transportation management system to track and measure carbon dioxide emissions down to the shipment level.

To download AIT’s sustainability report and learn more about AIT’s sustainability initiatives, visit aitworldwide.com/corporate-social-responsibility.

Learn more about The Climate Pledge at theclimatepledge.com.

About AIT Worldwide Logistics

AIT Worldwide Logistics is a global freight forwarder that helps companies grow by expanding access to markets all over the world where they can sell and/or procure their raw materials, components and finished goods. For more than 40 years, the Chicago-based supply chain solutions leader has relied on a consultative approach to build a global network and trusted partnerships in nearly every industry, including aerospace, automotive, consumer retail, food, government, healthcare, high-tech, industrial and life sciences. Backed by scalable, user-friendly technology, AIT’s flexible business model customizes door-to-door deliveries via sea, air, ground and rail — on time and on budget. With expert teammates staffing more than 100 worldwide locations in Asia, Europe and North America, AIT’s full-service options also include customs clearance, warehouse management and white glove services. Learn more at www.aitworldwide.com.

Our Mission

At AIT, we vigorously seek opportunities to earn our customers’ trust by delivering exceptional worldwide logistics solutions while passionately valuing our co-workers, partners and communities.

Contacts

Matt Sanders

Public Relations Manager

+1 (630) 766-8300

msanders@aitworldwide.com

800-669-4AIT (4248)

www.aitworldwide.com

TORONTO–(BUSINESS WIRE)–Inovalis Real Estate Investment Trust (the “REIT”) (TSX: INO.UN) today announced the closing of the disposition of the Courbevoie property located in the La Defence area of Paris for €27.2 million (CAD $39.4 million), €6.4 million (CAD $9.3 million) above the Q3 2022 €20.8 million (CAD $30.1 million) fair market value. The €17.2 million (CAD $24.9 million) net proceeds from the sale are slated for redeployment into other investment opportunities.

President Stephane Amine commented “Today’s closing marks the achievement of another of the REIT’s 2022 strategic initiatives and frees up capital to deploy next year. We believe 2023 will be a year of transition where capital will be key to secure opportunities. The continued demand for space in office properties in France and Germany still form an enduring foundation for European office real estate investment.”

All amounts have been converted to Canadian dollars (CAD $) using an exchange rate of 1.4485 CAD $ per €.

FORWARD-LOOKING INFORMATION

Although management believes that the expectations reflected in the forward-looking information are reasonable, no assurance can be given that these expectations will prove to be correct, and since forward-looking information inherently involves risks and uncertainties, undue reliance should not be placed on such information.

Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such forward-looking statements. The estimates and assumptions, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth in this document as well as the following:

1. the ability to continue to receive financing on acceptable terms;
2. the future level of indebtedness and the REIT’s future growth potential will remain consistent with current expectations;
3. the success of the asset recycling program;
4. there will be no changes to tax laws adversely affecting the REIT’s financing capability, operations, activities, structure, or distributions;
5. the REIT will retain and continue to attract qualified and knowledgeable personnel as the portfolio and business grow;
6. the impact of the current economic climate and the current global financial conditions on operations, including the REIT’s financing capability and asset value, will remain consistent with current expectations;
7. there will be no material changes to government and environmental regulations that could adversely affect operations;
8. conditions in the international and, in particular, the French, German, Spanish and other European real estate markets, including competition for acquisitions, will be consistent with past conditions;
9. capital markets will provide the REIT with readily available access to equity and/or debt financing; and
10. the impact the COVID-19 pandemic and geopolitical conflict in the Ukraine and Russia will have on the REIT’s operations, the demand for the REIT’s properties and global supply chains and economic activity in general.

The REIT cautions that this list of assumptions is not exhaustive. Although the forward-looking statements contained in this press release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements.

When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not, or the times at or by which, such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements, including, but not limited to:

• the REIT’s ability to execute its growth and capital deployment strategies;
• the REIT’s ability to execute its asset recycling program;
• the impact of changing conditions in the European office market;
• the marketability and value of the REIT’s portfolio;
• changes in the attitudes, financial condition and demand in the REIT’s demographic markets;
• fluctuation in interest rates and volatility in financial markets;
• the duration and ultimate impact of the COVID-19 pandemic and related government interventions as well as the geopolitical conflict in the Ukraine and Russia on the REIT’s business, operations and financial results;
• general economic conditions, including any continuation or intensification of the current economic downturn;
• developments and changes in applicable laws and regulations; and
• such other factors discussed under ‘‘Risk Factors and Uncertainties’’ in the REIT’s Annual Information Form.

If any risks or uncertainties with respect to the above materialize, or if the opinions, estimates or assumptions underlying the forward-looking statements prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking statements.

Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Certain statements included in this press release may be considered a ‘‘financial outlook’’ for purposes of applicable Canadian securities laws, and as such, the financial outlook may not be appropriate for purposes other than this press release. All forward-looking statements are based only on information currently available to the REIT and are made as of the date of this press release. Except as expressly required by applicable Canadian securities law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.

About Inovalis REIT

Inovalis REIT is a real estate investment trust listed on the Toronto Stock Exchange in Canada. It was founded in 2013 by Inovalis and invests in office properties in primary markets of France, Germany and Spain. It holds 14 assets representing 470 million Euros of AuM. Inovalis REIT acquires (indirectly) real estate properties via CanCorpEurope, authorized Alternative Investment Fund (AIF) by the CSSF in Luxemburg, and managed by Inovalis S.A.

About Inovalis Group

Inovalis S.A. is a French Alternative Investment fund manager, authorized by the French Securities and Markets Authority (AMF) under AIFM laws. Inovalis S.A. and its subsidiaries (Advenis S.A., Advenis REIM) invest in and manage Real Estate Investment Trusts such as Inovalis REIT, open ended funds (SCPI) with stable real estate focus such as Eurovalys (for Germany) and Elialys (Southern Europe), Private Thematic Funds raised with Inovalis partners to invest in defined real estate strategies and direct Co-investments on specific assets.

Inovalis Group (www.inovalis.com), founded in 1998 by Inovalis SA, is an established pan European real estate investment player with EUR 7 billion of AuM and with offices in all the world’s major financial and economic centers in Paris, Luxembourg, Madrid, Frankfurt, Toronto and Dubai. The group is comprised of 300 professionals, providing Advisory, Fund, Asset and Property Management services in Real Estate as well as Wealth Management services.

Contacts

David Giraud, Chief Executive Officer
Inovalis Real Estate Investment Trust

Tel: +33 1 5643 3323

david.giraud@inovalis.com

Khalil Hankach, Chief Financial Officer
Inovalis Real Estate Investment Trust

Tel: +33 1 5643 3313

khalil.hankach@inovalis.com