Aurora Cannabis Invests $7.5M In Alberta Marijuana Company High Tide

Alberta-based cannabis company High Tide announced that it had sold the first tranche of senior unsecured convertible debentures under a brokered private placement. The buyer: Aurora Cannabis Inc. ACB. 

What Happened

Aurora Cannabis acquired 10,000 debentures at a price of $1,000 each, which resulted in total proceeds of CAD $10 million ($7.5 million), according to High Tide.

In addition, High Tide sold 1,330 debentures to other participants in the offering. In this way, High Tide's gross proceeds amount to $11.33 million. 

Each debenture carries an annual interest rate of 8.5 percent. The debentures can be converted into common shares of High Tide at a post-split price of 75 cents per share, which represents a 50-percent premium to the price at which shares were issued.

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Why It's Important

High Tide is focused on retail and owns a portfolio of subsidiaries such as RGR Canada, Smoker's Corner, Famous Brandz and Canna Canabana. On Dec. 12, the CSE approved High Tide's listing, with its stock expected to start trading on Dec. 17. 

The investment from Aurora, one of the leading cannabis growers in Canada, opens High Tide for potential collaboration that could result in many opportunities. 

What's Next

High Tide plans to conduct a second tranche of debentures, which would result in proceeds of up to $20 million. The company said it allowed Canaccord Genuity, the lead agent and sole bookrunner of the offering, to arrange the sale of up to an additional $20 million of debentures. 

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