High Tide Announces Closing of $15 Million in Subordinated Debt Facility
High Tide Inc. (Nasdaq: HITI) has announced the initial closing of a $15 million subordinated debt facility. The company issued $10 million in principal subordinate secured debentures in the Initial Tranche, with the remaining $5 million to be drawn in November 2024. The debentures, priced at $900 each, will mature on July 31, 2029, and bear a 12% annual interest rate. In connection with the closing, High Tide issued 230,760 common shares at $3.47 per share to the lenders. The net proceeds will be used for debt repayment, business development, and working capital. This facility provides High Tide with additional financial flexibility to support its growth initiatives in the cannabis retail sector.
High Tide Inc. (Nasdaq: HITI) ha annunciato la chiusura iniziale di un prestito subordinato da 15 milioni di dollari. L'azienda ha emesso 10 milioni di dollari in obbligazioni subordinate garantite nella Tranche Iniziale, con i restanti 5 milioni di dollari che saranno disponibili a novembre 2024. Le obbligazioni, valutate a 900 dollari ciascuna, scadono il 31 luglio 2029 e presentano un tasso di interesse annuale del 12%. In relazione alla chiusura, High Tide ha emesso 230.760 azioni ordinarie a 3,47 dollari per azione ai finanziatori. I proventi netti saranno utilizzati per rimborso del debito, sviluppo aziendale e capitale circolante. Questo prestito offre a High Tide ulteriore flessibilità finanziaria per supportare le sue iniziative di crescita nel settore del retail cannabis.
High Tide Inc. (Nasdaq: HITI) ha anunciado el cierre inicial de un facilidad de deuda subordinada de 15 millones de dólares. La empresa emitió 10 millones de dólares en obligaciones subordinadas garantizadas en la Tranche Inicial, con los restantes 5 millones de dólares que se podrán retirar en noviembre de 2024. Las obligaciones, fijadas a 900 dólares cada una, vencerán el 31 de julio de 2029 y tendrán un tasa de interés anual del 12%. En relación con el cierre, High Tide emitió 230.760 acciones comunes a 3,47 dólares por acción a los prestamistas. Los ingresos netos se utilizarán para pago de deuda, desarrollo empresarial y capital de trabajo. Esta facilidad proporciona a High Tide una mayor flexibilidad financiera para apoyar sus iniciativas de crecimiento en el sector minorista de cannabis.
하이 타이드 주식회사(Nasdaq: HITI)는 1,500만 달러 규모의 신 subordinated debt의 초기 마감을 발표했습니다. 회사는 초기 분할에서 1,000만 달러의 원금 담보 부채를 발행했으며, 나머지 500만 달러는 2024년 11월에 인출될 예정입니다. 부채는 개당 900달러에 가격이 책정되며, 2029년 7월 31일에 만료되며 연 12%의 이자율이 부여됩니다. 마감과 관련하여 하이 타이드는 대출자에게 주당 3.47달러에 230,760주의 보통주를 발행했습니다. 순수익은 부채 상환, 사업 개발 및 운영 자본에 사용될 것입니다. 이 자금 조달은 하이 타이드가 대마초 소매 부문에서 성장 계획을 지원할 수 있는 추가 금융 유연성을 제공합니다.
High Tide Inc. (Nasdaq: HITI) a annoncé la clôture initiale d'un financement de dette subordonnée de 15 millions de dollars. La société a émis 10 millions de dollars d'obligations subordonnées sécurisées dans la première tranche, les 5 millions de dollars restants étant à retirer en novembre 2024. Les obligations, évaluées à 900 dollars chacune, arriveront à échéance le 31 juillet 2029 et porteront un taux d'intérêt annuel de 12%. En lien avec cette clôture, High Tide a émis 230.760 actions ordinaires au prix de 3,47 dollars par action aux prêteurs. Les produits nets seront utilisés pour remboursement de la dette, développement commercial et fonds de roulement. Cette facility fournit à High Tide une flexibilité financière supplémentaire pour soutenir ses initiatives de croissance dans le secteur du détail de cannabis.
High Tide Inc. (Nasdaq: HITI) hat den vorläufigen Abschluss einer 15 Millionen Dollar subordinierter Schuldenfinanzierung bekannt gegeben. Das Unternehmen hat 10 Millionen Dollar in vorrangigen besicherten Anleihen in der ersten Tranche ausgegeben, während die restlichen 5 Millionen Dollar im November 2024 abgerufen werden. Die Anleihen, deren Preis bei 900 Dollar pro Stück liegt, laufen am 31. Juli 2029 aus und haben einen jährlichen Zinssatz von 12%. Im Zusammenhang mit dem Abschluss hat High Tide 230.760 Stammaktien zu einem Preis von 3,47 Dollar pro Aktie an die Kreditgeber ausgegeben. Der Nettoerlös wird für Schuldentilgung, Geschäftsentwicklung und Betriebskapital verwendet. Diese Finanzierung bietet High Tide zusätzliche finanzielle Flexibilität zur Unterstützung seiner Wachstumsinitiativen im Cannabis-Einzelhandel.
- Secured $15 million in subordinated debt financing
- 12% fixed interest rate on drawn amounts
- Flexibility to redeem debentures before maturity
- Net proceeds to be used for debt repayment and business development
- Increased debt burden with 12% interest rate
- Potential dilution from issuance of 230,760 common shares
- Second-position security ranking behind existing senior lender
Insights
High Tide's
This debt facility demonstrates High Tide's ability to secure funding in a challenging cannabis market. The "retail-forward enterprise" approach positions them well in the evolving cannabis landscape. The
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated August 31, 2023, to its short form base shelf prospectus dated August 3, 2023.
The Debentures will mature on July 31, 2029, and bear interest at a fixed rate of
Pursuant to the terms of the subscription agreements, the Debentures will be drawn in two tranches: (i)
In connection with the closing of the Initial Tranche, the Company issued an aggregate of 230,760 common shares of the Company (each a "Common Share") at a price of
Ventum Capital Markets is acting as financial advisor to the Corporation in connection with arranging the Facility.
All Debentures and Common Shares issued pursuant to the Facility will be subject to a statutory hold period of four months plus one day from the date of issuance in accordance with applicable securities legislation in
The net proceeds of the Facility will be used for debt repayment, ongoing development of the Company's business model and general working capital purposes.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction, nor shall there be any offer or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The offer and sale of the securities has not been and will not be registered under the
High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world's most powerful plant and is the second-largest cannabis retailer globally by store count1. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including:
Bricks & Mortar Retail: Canna Cabana™ is the largest cannabis retail chain in
Retail Innovation: Fastendr™ is a unique and fully automated technology that employs retail kiosks to facilitate a better buying experience through browsing, ordering and pickup.
Consumption Accessories: High Tide operates a suite of leading accessory e-commerce platforms across the world, including Grasscity.com, Smokecartel.com, Dailyhighclub.com, and Dankstop.com.
Brands: High Tide's industry-leading and consumer-facing brand roster includes Queen of Bud, Cabana Cannabis Co, Daily High Club, Vodka Glass, Puff Puff Pass, Dopezilla, Atomik, Hue, Evolution and more.
CBD: High Tide continues to cultivate the possibilities of consumer CBD through Nuleafnaturals.com, FABCBD.com, blessedcbd.de and blessedcbd.co.uk.
Wholesale Distribution: High Tide keeps that cannabis category stocked with wholesale solutions via Valiant™.
Licensing: High Tide continues to push cannabis culture forward through fresh partnerships and license agreements under the Famous Brandz™ name.
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1 As reported by ATB Capital Markets based on store counts as of February 8, 2024 |
High Tide consistently moves ahead of the currents, having been named one of
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain "forward-looking information" and "forward-looking statements within the meaning of applicable securities legislation. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. The forward-looking statements herein include, but are not limited to, statements regarding: the receipt of final approval of the TSXV, whether the Company will redeem the debentures prior to maturity, the anticipated use of proceeds, and the timing of the drawing of the Final Tranche. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including but not limited to the risk factors discussed under the heading "Non-Exhaustive List of Risk Factors" in Schedule A to our current annual information form, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at www.sedarplus.ca and www.sec.gov, which factors are incorporated herein by reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results, or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.
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SOURCE High Tide Inc.
FAQ
What is the total value of High Tide's new subordinated debt facility?
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