Cannabis Retailer High Tide Inks CA$19MM Credit Agreement

TORONTO- High Tide, a cannabis retailer, inks a reduced CA$19 million credit agreement.

Canadian cannabis retail firm High Tide obtained a $14.7 million credit line from ConnectFirst, an Alberta credit union, for 19 million Canadian dollars.

High Tide initially announced the non-dilutive funding in April with a CA$30 million initial value.

High Tide later clarified this week that they have changed the terms of the loan “to create a greater immediately-accessible facility for High Tide, with a smaller total commitment from ConnectFirst initially – which High Tide anticipates would grow over time.”

High Tide, based in Calgary, Alberta, did not say how much the credit facility could expand.

High Tide raised CA$11.5 million in July by issuing shares as a “proactive” response to delays in getting the credit facility.

The new credit facility has an initial period of five years and is touted as having a “low” interest rate by High Tide.

According to the press announcement, the money raised would be put to use “to fund sustained organic expansion, general working capital requirements, and potential future (merger and acquisition) initiatives.”

In September, High Tide anticipates the loan facility to be closed.

With a goal of at least 150 by the end of 2022, the store advertises 139 active cannabis retail sites in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan.

Delta 9 Cannabis has also received funding from ConnectFirst.

On the Nasdaq and TSX Venture Exchange, High Tide shares trade under the symbol HITI.