Raj Grover: Yes. Thanks, Scott. Yes. So we are definitely going to put up more stores in the second half of the year than the first half that we did as communicated to the market. But our supreme focus remains on free cash flow generation. And as you can clearly see, Scott, we’ve made major improvements to our loss from operations. Our net losses were practically breakeven. If we stop growing aggressively, which we have, you can see that we are breakeven and then into positive territory. So we are – we remaining focused on that goal. Mississauga market in Ontario presents a very big opportunity for us. So we are going to go after that market relatively quickly, and that would be another four to six stores that we will add.
We will add another store in British Columbia that would be our eighth store. We have a very, very good opportunity in BC that we have been working on for quite some time and we’re about to realize it. But other than that, we are going to remain focused on our free cash flow generation goal and fortunately for High Tide, our same-store sales growth even though it’s naturally slowing down now after seven straight quarters of meaningful gains, it’s still growing. As calculated daily, we still grew 5% or 20% annualized in our same-store sales growth, which I was very, very happy with. So the focus is going to continue to remain on same-store sales growth, tighten our operations and add another six to eight locations in the second half of this year.
Scott Fortune: Thank you. I’ll jump back in the queue.
Operator: Thank you. The next question goes to Andrew Partheniou of Stifel. Andrew, please go ahead. Your line is open.
Andrew Partheniou: Hi. Thanks. Good morning. Thanks for taking my questions. I wanted to maybe start off with your cost savings initiatives that seems to have driven most of your EBITDA gains here, which was nice to see. On the G&A side, seems like advertising has also comes steadily down over the past year. But it’s a two-part question. So first, last quarter you talked about synergies that could help with bringing down G&A. Could you give us an update on where you are with that? Is that what drove a lot of the cost savings this quarter and how much is left? And the second part is just on the advertising. Just trying to understand how you – what kind of decision factors do you take into account when determining advertising spend? Are you just seeing opportunities to spend less money and get a better bank for your buck or trying to understand that a little bit better?
Raj Grover: Thank you for your question, Andrew. I’m going to pass the first question over to Sergio. And then I will answer the second part of the question on the advertising spend. So Sergio, over to you.
Sergio Patino: Thank you, Raj. So let’s just start with the G&A. So the G&A component, G&A went down by over $1.3 million sequentially from the $7.5 million in Q1 to $6.2 million in Q2 2023. So there were some non-recurring items in the Q1 figure. However, we found efficiencies in both retail and e-commerce business. And this efficiency across the board from store supplies, the way that we manage all the different software licenses in the e-commerce business. And we just started in that area, the consolidation of the business there – or all the multiple platforms that we have looking at the expense of the software from a consolidated basis rather than the six different product lines. So those expense we believe we will continue to see a similar cost base you see in the P&L in Q2.
