High Tide Closes Final Tranche Of $15M Debt, Plans Retail Growth

High Tide Inc. HITI, a leading cannabis retail enterprise, announced today the closing of the final tranche of its $15 million subordinated debt facility. This funding marks the completion of the company's previously disclosed plan to issue secured debentures, providing crucial financial support as it continues to expand its cannabis retail and e-commerce operations.

Details Of The Debt Facility

The debt facility, structured through subscription agreements with institutional lenders, consisted of two tranches. The first tranche of $10 million was secured on July 31, 2024, while the second and final tranche of $5 million has now been issued. The debentures are priced at $900 each, bear a fixed annual interest rate of 12%, and mature on July 31, 2029. High Tide has retained the option to redeem the debentures early, subject to a 60-day notice period and applicable penalties.

The debentures are governed by a trust indenture agreement with Olympia Trust Company, serving as trustee and collateral agent. They are secured by High Tide and its subsidiaries’ guarantees, ranking second to the senior lender. Ventum Capital Markets acted as the financial advisor for the arrangement of the facility.

High Tide plans to use the proceeds to repay debt maturing in December 2024 and support business development, expansion, and product innovation.

Strengthening High Tide's Growth Path

High Tide has carved out a unique position in the cannabis market with a focus on retail innovation and consumer services. It operates Canada's largest cannabis chain, Canna Cabana, and pioneered the world's first cannabis discount club. The company also offers Fastendr, an automated retail solution for a streamlined consumer experience.

With new financing, High Tide is poised to expand its retail and e-commerce platforms, capturing market share in the growing cannabis sector. Its diversified model, including physical stores, e-commerce, and a growing CBD portfolio, meets the changing needs of cannabis consumers worldwide.

The additional liquidity strengthens High Tide's growth, enabling it to seize opportunities and navigate market changes for long-term success.

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