High Tide Inc. (NASDAQ: HITI) announced it will hire forensic investigators to examine unusual trading patterns in its common shares that the company believes may violate securities laws in Canada and the United States.

The cannabis retailer said it has observed a recurring pattern over ten consecutive quarters where its stock price declined the day after earnings releases, despite positive after-hours reactions to financial results that typically exceeded analyst expectations.

The company stated it has "reasonable grounds to believe that certain trading activity in its shares may not reflect normal market forces" and that some conduct may contradict applicable securities regulations.

High Tide plans to retain qualified forensic investigators and industry specialists with experience in securities market structure and trading surveillance to conduct an independent review. The investigation will focus on trading activity surrounding earnings releases and other material disclosure events.

The company intends to provide investigation findings and supporting evidence to regulatory authorities in Canada and the United States, including securities commissions and self-regulatory organizations. High Tide said it will cooperate fully with any regulatory inquiries that may result.

Management and the board of directors stated they are committed to protecting shareholder interests and ensuring the market for the company's shares operates fairly and transparently.

High Tide operates Canna Cabana, which the company describes as the largest cannabis retail chain in Canada with 221 domestic locations and one international location. The company also owns e-commerce platforms and medical cannabis distribution operations in Germany.

The company encourages shareholders or market participants with information about unusual trading activity to contact management. All information received will be treated confidentially, according to the press release.