- High Tide Inc. (HITI) closes a short-term debt financing from a creditor for $5 million
- High Tide issued 700,000 warrants to the lender to purchase one common share for $4.98 each until June 21, 2023
- Net proceeds will fund growth initiatives, general corporate purposes, and working capital
- The company will go ahead with a small debt facility at this time
- The proposed non-dilutive credit facilities with ConnectFirst Credit Union for $30 million has been delayed until July
- High Tide Inc. (HITI) is up 1.10 per cent trading at $2.75 per share as of 12:04 p.m. ET
High Tide (HITI), has closed a $5 million short-term debt financing from an arm’s length creditor.
High Tide issued 700,000 warrants to the lender. Each warrant allows the lender to purchase one High Tide common share for $4.98 each until June 21, 2023.
According to the company, the term of the loan can be extended anytime between the first three months before the maturity date. If the parties mutually agree to extend for an extra year, then the warrants will also extend for the same amount of time.
The net proceeds of the loan will be used to fund growth initiatives, general corporate purposes, and working capital.
The company will go ahead with a small debt facility at this time because its proposed non-dilutive credit facilities with ConnectFirst Credit Union for $30 million has been delayed until July.
High Tide issued a non-convertible subordinated secured debenture the lender which will mature one year from now and bears interest at a fixed rate of 10 per cent per year, to be paid quarterly.
The company has a right to prepay part of or the total amount of the debentures at par plus accrued and unpaid interest at any time by providing a minimum of five days and a maximum 60 days notice to the Lender.
High Tide Inc. (HITI) is up 1.10 per cent trading at $2.75 per share as of 12:04 p.m. ET.