Cannabis Retail Giant Announces C$30M ATM Offering, Replacing Previous ATM Program

Editors note: a prior version of this article incorrectly indicated that High Tide Inc had secured CA$30 million in financing via an at-the-market equity offering program. While the program has been established, the company hasn't issued new shares or raised any additional money yet. The article and headline were updated on Friday, Sep. 1, at 1:30pm ET, to reflect the correct information.

High Tide Inc. HITI HITI 2LYA has established an at-the-market equity offering program allowing it to issue up to CA$30 million of common shares from treasury to the public.

What Happened

The Calgary, Alberta-based company established an ATM program allowing it to occasionally issue up to CA$30 million of common shares from treasury to the public at its discretion and subject to regulatory requirements.

Any common shares sold through the ATM Program will be sold at prevailing market prices when issued:

• In ordinary brokers' transactions on the Nasdaq Capital Market or another U.S. marketplace on which the common shares are listed.
• In ordinary brokers' transactions on the TSX Venture Exchange or another Canadian marketplace on which the common shares are listed.

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.

Why It Matters

With this move, the Canadian retailer replaced its previous at-the-market equity offering program that ended on May 22, 2023.

The company will use the net proceeds to fund two specific strategic initiatives it is currently developing, to support the growth and development of its existing operations, to fund future acquisitions, and for working capital and general corporate purposes.

"The ATM Program in place can act as a low-cost source of capital, should the need arise," Raj Grover, president and CEO of High Tide, said.

Grover spoke at this year's Benzinga event in Miami about cannabis and the future of retail. Benzinga Cannabis Capital Conference returns to Chicago on September 27-28.

What's Next

"We will continue to be highly selective and disciplined regarding our pursuit. As previously communicated to the market, our focus remains on generating positive free cash flow and becoming less reliant on macro factors and industry sentiment," Grover added.

HITI Price Action

High Tide's shares traded 1.36% lower at $1.45 per share during the pre-market session on Friday morning.

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