## High Tide Inc. (HITI) Secures $15 Million in Funding to Fuel Growth
High Tide Inc. (HITI), a prominent player in the cannabis retail landscape, has announced the successful completion of its $15 million subordinated debt facility. This crucial funding marks the culmination of the company’s previously announced plan to issue secured debentures, providing essential financial support as it continues to expand its reach in both the physical retail and e-commerce realms.
Details of the Debt Facility
The debt facility was structured through subscription agreements with institutional lenders, divided into two tranches. The first tranche, amounting to $10 million, was secured on July 31, 2024. The second and final tranche of $5 million has now been successfully issued. Each debenture is priced at $900, carries a fixed annual interest rate of 12%, and is set to mature on July 31, 2029.
High Tide retains 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. These debentures are secured by guarantees from High Tide and its subsidiaries, ranking second to the senior lender. Ventum Capital Markets acted as the financial advisor for this arrangement.
Strategic Investment for Expansion and Innovation
High Tide plans to utilize the proceeds from this financing in several key areas:
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Repayment of Debt:
The company will use a portion of the funds to repay existing debt that matures in December 2024, enhancing its financial stability.*
Business Development:
The funding will support the company’s ongoing efforts to expand its retail network, explore new markets, and implement innovative strategies.*
Product Innovation:
High Tide will invest in developing new products and services, further solidifying its position as a leader in the cannabis industry.Strengthening High Tide’s Growth Trajectory
High Tide has carved a distinct niche in the cannabis market by prioritizing retail innovation and consumer services. The company operates Canada’s largest cannabis chain, Canna Cabana, and was the first to introduce the world’s first cannabis discount club. High Tide also offers Fastendr, an automated retail solution designed to streamline the customer experience.
This new financing provides High Tide with the necessary resources to expand its retail and e-commerce platforms, capturing market share in the rapidly growing cannabis sector. Its diverse business model, encompassing physical stores, online platforms, and a growing CBD portfolio, caters to the evolving needs of cannabis consumers globally.
The injection of liquidity strengthens High Tide’s growth trajectory, enabling it to seize opportunities and adapt to market fluctuations, setting the stage for long-term success.
