High Tide To Raise Up To CA$40M Through Newly Established ATM Program

High Tide Inc. HITI HITI (FSE:2LYA) is poised to raise up to CA$40 million ($31.13 million) by issuing its common shares through a newly established at-the-market equity offering program.

The Calgary-based cannabis retailer said it plans to issue its common shares from the treasury to the public from time to time, at its discretion and subject to regulatory requirements.

High Tide will determine, at its sole discretion, the date, minimum price, and maximum number of common shares to be sold under the ATM program.

The company plans to utilize net proceeds of the offering to fund two specific strategic initiatives it is currently developing to support the growth and development of its existing operations, funding future acquisitions as well as working capital and general corporate purposes.

Sales of common shares through the ATM program will be made under the terms of an equity distribution agreement dated December 3, 2021, entered into among the High TIde, ATB Capital Markets Inc. and ATB Capital Markets USA Inc.

In addition, the company agreed to pay the agents a cash fee of up to 2% of the gross proceeds for common shares sold under the ATM agreement and reimburse certain expenses incurred by the agents.

"This ATM Program is a very low-cost tool for us and provides an opportunity to be flexible in our approach and potentially raise some capital if and as needed to fund two strategic initiatives we are working on in particular," Raj Grover, the company's president and CEO said Monday, adding that "keeping our balance sheet healthy is paramount for us."

More recent news from High Tide:

Cannabis Retailer: High Tide's Stock Slightly Up On Closing Of $31.24M NuLeaf Acquisition

$250 Million Expected In Cannabis Sales: 'Green Wednesday' Kicks Off Holiday Weed Sales Boost — Cannabis Daily November 24, 2021

High Tide Expands US Reach Via $31.24M Acquisition Of 80% Stake In NuLeaf Naturals

Cannabis Retailer High Tide Ramps Up Its Retail Presence In Saskatchewan And Ontario

HITI Price Action:

High Tide's shares traded 0.18% higher at $5.45 per share at the market close on Friday.

Photo: Courtesy of High Tide Inc.