High Tide has secured $15 million worth of credit in debt financing.
The company operates Canna Cabana™ which is the largest cannabis retail chain in Canada, with 180 current locations spanning British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and growing. The company has been actively acquiring retailers across Canada for years, so this money will undoubtedly help to continue that trend and provide them with working capital.
High Tide closed subordinated debt facility of $1,000 principal subordinate secured debentures at a price of $900 per debenture, pursuant to subscription agreements with arm’s length institutional credit providers.
The debentures will mature on July 31, 2029, and bear interest at a fixed rate of 12% per annum on drawn amounts, payable quarterly. The Company may redeem the debentures at any time prior to maturity, in whole or in part, upon 60 days’ notice and payment of certain penalties as applicable.
The debentures will be drawn in two tranches: (i) $10,000,000 principal amount which has been drawn on the initial closing (the “Initial Tranche”) and (ii) $5,000,000 in November 2024.
In connection with the closing of the Initial Tranche, High Tide issued an aggregate of 230,760 common shares of the company at a price of $3.47 per common share to the lenders.
The net proceeds will be used for debt repayment, ongoing development of the company’s business model and general working capital purposes.
Photo courtesy of High Tide. Photo by Jill Thompson Photography https://www.jillthompson.ca