High Tide Announces Closing of Final Tranche of $15 Million Subordinated Debt Facility
High Tide Inc (Nasdaq: HITI) has completed the final tranche of its $15 million subordinated debt facility, issuing 5,000 debentures at $900 each. The debentures will mature on July 31, 2029, with a 12% annual fixed interest rate payable quarterly. The facility was drawn in two tranches: $10 million previously drawn on July 31, 2024, and the final $5 million now completed. The proceeds will be used for debt repayment maturing on December 31, 2024, business development, and working capital. The debentures are secured by company assets and rank second to existing senior debt.
High Tide Inc (Nasdaq: HITI) ha completato l'ultima tranche del suo finanziamento di debito subordinato da 15 milioni di dollari, emettendo 5.000 obbligazioni a 900 dollari ciascuna. Le obbligazioni scadranno il 31 luglio 2029, con un tasso d'interesse fisso annuale del 12% pagabile trimestralmente. Il finanziamento è stato erogato in due tranche: 10 milioni di dollari già prelevati il 31 luglio 2024, e i 5 milioni finali ora completati. I proventi saranno utilizzati per il rimborso di debiti in scadenza il 31 dicembre 2024, per lo sviluppo dell'attività e per il capitale di esercizio. Le obbligazioni sono garantite da beni aziendali e hanno un rank subordinato rispetto al debito senior esistente.
High Tide Inc (Nasdaq: HITI) ha completado la última tranche de su instalación de deuda subordinada de 15 millones de dólares, emitiendo 5,000 bonos a 900 dólares cada uno. Los bonos vencerán el 31 de julio de 2029, con una tasa de interés fija anual del 12% pagadera trimestralmente. La instalación se utilizó en dos tranches: 10 millones de dólares retirados previamente el 31 de julio de 2024, y los 5 millones finales que se completan ahora. Los ingresos se utilizarán para el reembolso de la deuda que vence el 31 de diciembre de 2024, el desarrollo de negocios y el capital de trabajo. Los bonos están garantizados por activos de la empresa y tienen un rango secundario respecto a la deuda senior existente.
하이 타이드 주식회사 (Nasdaq: HITI)는 1,500만 달러 규모의 2순위 채무 시설의 마지막 분할을 완료하고, 각 900달러에 5,000개의 채권을 발행했습니다. 채권은 2029년 7월 31일에 만기가 되며, 분기별로 지급되는 12%의 연간 고정 이자율이 적용됩니다. 이 시설은 두 번에 걸쳐 인출되었습니다: 2024년 7월 31일자로 미리 인출된 1,000만 달러와 이번에 완료된 500만 달러입니다. 수익금은 2024년 12월 31일 만기인 채무 상환, 사업 개발 및 운영 자본에 사용될 예정입니다. 채권은 회사 자산으로 담보되어 있으며 기존 시니어 채무에 대해 2순위입니다.
High Tide Inc (Nasdaq: HITI) a achevé la dernière tranche de son prêt obligataire subordonné de 15 millions de dollars, en émettant 5 000 obligations à 900 dollars chacune. Les obligations arriveront à échéance le 31 juillet 2029, avec un taux d'intérêt fixe annuel de 12% payable trimestriellement. Le financement a été tiré en deux tranches : 10 millions de dollars retirés précédemment le 31 juillet 2024, et les derniers 5 millions de dollars qui viennent d'être complétés. Les recettes seront utilisées pour le remboursement de dettes échues le 31 décembre 2024, pour le développement commercial et pour le fonds de roulement. Les obligations sont garanties par des actifs de la société et sont classées après la dette senior existante.
High Tide Inc (Nasdaq: HITI) hat die letzte Tranche seiner 15-Millionen-Dollar-Unternehmensanleihe abgeschlossen und 5.000 Anleihen zu je 900 Dollar ausgegeben. Die Anleihen haben eine Fälligkeit am 31. Juli 2029, mit einem festen Jahreszinssatz von 12 %, der vierteljährlich zahlbar ist. Die Finanzierung wurde in zwei Tranchen in Anspruch genommen: 10 Millionen Dollar wurden bereits am 31. Juli 2024 abgerufen, und die letzten 5 Millionen Dollar wurden jetzt abgeschlossen. Der Erlös wird zur Rückzahlung von Schulden verwendet, die am 31. Dezember 2024 fällig werden, für die Geschäftsentwicklung und für das Betriebskapital. Die Anleihen sind durch Vermögenswerte des Unternehmens gesichert und stehen nachrangig zu bestehenden Senior-Debts.
- Secured $15 million in debt financing
- Long maturity period until 2029 provides financial stability
- Flexibility to redeem debentures before maturity
- High interest rate of 12% per annum increases debt service costs
- Debentures sold at discount ($900 per $1000 face value)
- Additional collateral requirements may restrict future financing options
Insights
This
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 were to be drawn in two tranches: (i)
Ventum Capital Markets is acting as financial advisor to the Corporation in connection with arranging the Facility.
The net proceeds of the Facility will be used for debt repayment maturing on December 31, 2024 ongoing development of the Company's business model and general working capital purposes.
All figures are expressed in Canadian dollars unless otherwise noted.
ABOUT HIGH TIDE
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.
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.
_________________________________ |
1 As reported by ATB Capital Markets based on store counts as of February 8, 2024 |
CONTACT INFORMATION
Media Inquiries
Omar Khan
Chief Communications and Public Affairs Officer
High Tide Inc.
omar@hightideinc.com
403-770-3080
Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
High Tide Inc.
vahan@hightideinc.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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: whether the Company will redeem the debentures prior to maturity, and the anticipated use of proceeds. 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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/high-tide-announces-closing-of-final-tranche-of-15-million-subordinated-debt-facility-302303580.html
SOURCE High Tide Inc.
FAQ
What is the interest rate on High Tide's (HITI) new debt facility?
When does High Tide's (HITI) new subordinated debt facility mature?
How much was the final tranche of High Tide's (HITI) debt facility?
What will High Tide (HITI) use the debt facility proceeds for?
