High Tide Reduces Its Total Debt Balance To $28.4M By Eliminating All META Convertible Debentures

High Tide Inc. HITI HITI announced Friday that all outstanding convertible debentures originally issued by Meta Growth Corp. have now been converted into common shares of High Tide - more than one year prior to their maturity date. Previously, The META Convertible Debentures were traded on the TSX Venture Exchange HITI.

The company’s total debt balance immediately after closing the acquisition of META was approximately $71 million, including $21.15 million of META Convertible Debentures.

The retail-focused cannabis company also revealed that with extinguished META Convertible Debentures its total debt balance has been reduced to $28.4 million.

Of this amount, $10.8 million is non-interest bearing. Total debt maturities during the next 12 months from today are $1.6 million. Of the company’s remaining debt profile, $13.4M is convertible at an average conversion price of $6.31 per common share, while $15.0 million is not convertible.

“Since the close of the META acquisition in November 2020 we have been aggressively driving our business forward, growing the top line, building new stores and making accretive acquisitions, with a focus on the U.S. e-commerce market,” Raj Grover, president and CEO of High Tide stated. “Simultaneously we have been deleveraging our balance sheet, shedding the majority of our debt while also increasing our cash reserves. This has been driven in part by the strong performance of our shares which has resulted in investors converting debt into equity,” added Grover.

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Price Action

High Tide’s shares were trading 0.76% higher at $7.19 per share at the time of writing Friday morning.

Photo: Courtesy of Esteban Lopez on Unsplash