High Tide Inc. Secures $15 Million Financing to Support Canadian Expansion

LOS ANGELES- High Tide Inc., known for its innovative approach to cannabis retailing, has announced a significant financial maneuver to facilitate its growth plans across Canada. Under the leadership of CEO Raj Grover, the company has successfully secured substantial subordinated debt financing, promising to bolster its expansion strategy and consolidate its market position.

Financial Boost: A Necessary Lifeline for Growth

High Tide Inc. revealed it had secured $15 million in subordinated debt financing. This strategic move includes an accordion feature that could provide an additional $10 million if further funds are needed. These steps underscore the company’s commitment to expanding its footprint and enhancing operational capabilities.

High Tide will issue $1,000 principal subordinate secured debentures priced at $900 per debenture, reflecting a 10% original issue discount. Each lender will receive their proportional share of common shares in the company’s capital at a calculated price of $3.47 per share. All issued debentures and common shares will be subject to statutory holding periods and resale restrictions upon issuance. Raj Grover, CEO of High Tide Inc., expressed considerable excitement regarding the new financing arrangements. Highlighting the company’s robust free cash flow profile, Grover emphasized that the fresh influx of capital would support the ambitious store expansion initiatives planned across Canada. This funding positions High Tide favorably to continue its growth and innovation within the competitive cannabis industry.This financing deal is expected to be completed on or before June 30, 2024. However, it remains contingent upon certain conditions and regulatory approvals. High Tide must navigate these compliance requirements to ensure the timely injection of these crucial funds into its operational framework.High Tide has carved out a distinct niche in the cannabis retail space through a community-centric business model. Operating physical stores under the Canna Cabana brand alongside e-commerce platforms such as Grasscity.com and Smokecartel.com, the company offers diverse shopping experiences catering to various consumer preferences.In addition to its robust retail operations, High Tide owns several popular cannabis brands, including Queen of Bud, Daily High Club, and Vodka Glass. This expansive portfolio enables the company to appeal to a broad spectrum of consumers, enhancing its market presence and promoting brand loyalty within the burgeoning cannabis sector.

High Tide’s rapid ascent within the industry has not gone unnoticed. The Globe and Mail’s Report on Business Magazine has multiple times named the company one of Canada’s Top Growing Companies. This recognition is a testament to the company’s sustained growth trajectory and successful execution of strategic goals.

Beyond mere profitability, High Tide remains devoted to delivering tangible value across all aspects of the cannabis industry. The company consistently seeks to exceed expectations through innovative product offerings, exceptional customer service, and community engagement while maintaining a positive cash flow profile. This holistic approach ensures long-term sustainability and reinforces High Tide’s reputation as a leader in the cannabis market.