- High Tide (HITI) has signed a binding commitment letter for a C$19M credit facility with Connect First Credit Union
- The facility bears interest at Connect First’s floor rate over a five-year term
- The company intends to use the funds for organic growth, general working capital and potential M&A activities
- High Tide is Canada’s largest retailer of recreational cannabis measured by revenue
- High Tide (HITI) is up by 1.6 per cent trading at $1.90 per share
High Tide (HITI) has signed a binding commitment letter with Connect First Credit Union.
Connect First Credit Union is a Calgary-based full-service financial institution with over C$6B in assets under administration.
High Tide will receive a C$19M credit facility over five years under the following terms:
- The funds will be accessible upon request and cleared through blended principal and interest payments
- The interest rate is set at Connect First’s floor rate, which is reflective of the strength of High Tide’s business
- The deal entails a quarterly debt service coverage ratio of not less than 1.40:1, a monthly current ratio of not less than 1.25:1, and a quarterly funded debt to EBITDA ratio of not more than 3:1 beginning on October 31, 2023
The company’s 12-month forecast places it comfortably in compliance with all financial covenants.
It intends to use the funds for organic growth, general working capital and potential M&A activities.
The parties expect the agreement to close in mid-September.
“Our business remains on a strong footing and we continue to gain traction as the leader in the Canadian cannabis retail market,” stated Raj Grover, High Tide’s President and CEO. “Once in place, this facility will help us continue to propel our growth in an increasingly non-dilutive fashion. Through our conversations with connectFirst, we expect that this line will expand in tandem with our business growth.”
“We are very excited about this new partnership between High Tide and connectFirst helping to create a more prosperous Alberta – and beyond,” added Sourav Neogi, Relationship Manager, Corporate & Commercial Banking, Connect First Credit Union.
High Tide is Canada’s largest retailer of recreational cannabis measured by revenue.
High Tide (HITI) is up by 1.6 per cent trading at $1.90 per share as of 2:03 pm EST.
