So the only weakness in our business right now is our CBD business, which is roughly about 5%, 6% of our total business. So not a big deal, but nevertheless, we don’t give up, and the hope is that we are going to get this in order once we get that positive momentum back as the macro market fixes itself.
Frederico Gomes: Thank you. That’s great color. And then just maybe following up on a previous question about the free cash flow guidance, it does seem that you’re pretty much very close to reaching that. If you back out working capital changes, you’re already there. So I’m just curious now, once you reach that goal, which is very close apparently, what is the capital allocation plan here? Once you reach positive free cash flow, are you planning to maybe accelerate growth in brick-and-mortar, organically or through M&A or what other options would you consider deploying that additional capital from your operations? Thank you.
Raj Grover: Thanks for your question, Fred. So our main goal right now is to reach free cash flow generation very clearly and prove it to our investors that, look, we know how to grow. We’ve grown from roughly $8.5 million of revenue four years ago to close to $0.5 billion of sales run rate. There’s no doubt High Tide knows how to grow. Now we’re taking a bit of a pause to make sure we can prove to our investors, we also know how to become free cash flow positive and start generating net profits, which is not easy to do in this hyper – very hyper competitive industry. So what we want to do, Fred, achieve that goal and then get back to accelerating our store counts, which we still feel that we can add at least a 100 more stores in Canada and have 15% of market share in the long-term.
We’re already sitting at close to 10% market share in Canada, which is, if you compare us to our peers, most of them are nowhere near it. So we’ve got a great thing brewing here. We’re going to focus on free cash flow generation, and we have a lot of heightened level of opportunities coming to the market. As I mentioned, Fire & Flower portfolio is one, but there’s many other opportunities in the market that exist, but we will strike at the right time at the right price for the right price, and we’re not going to rush into this. So we are keeping a very close eye on the opportunities that are coming. I’m a [indiscernible] for good leases and I don’t like passing on high quality locations, so we continue to accumulate a few of those leases as well.
So as soon as we reach our target, we are back to building our organic portfolio. So you’re going to see some more organic growth come out in the later half of the year. And then if a compelling M&A opportunity or an asset portfolio comes through, we are definitely going to take a very serious look at it.
Frederico Gomes: Thank you. I’ll pass it along.
Operator: Thank you. We have no further questions. I’ll now like to turn the session back over to High Tide’s Chief Executive Officer, Raj Grover for final comments.
Raj Grover: Thank you, operator, and thank you to everyone for your interest and continued support of High Tide. We are very proud of what we’ve achieved this quarter and remain excited about the road ahead. With that, I will ask the operator to close the line. Have a great day everyone.
Operator: Thank you. This now conclude today’s call. Thank you all for joining. You may now disconnect your lines.
