Mr. Raj Grover reports
HIGH TIDE EXTENDS MATURITY DATE AND REDUCES INTEREST COST OF $20 MILLION CREDIT FACILITY
High Tide Inc.'s wholly owned subsidiary, Meta Growth Corp., has reached a new agreement to extend the maturity of its credit facilities totalling $20-million from Opaskwayak Cree Nation (OCN) to Dec. 31, 2024, at a reduced rate of 10 per cent per annum by removing the annual administration fee of 2.5 per cent. The original credit facilities partially matured on Dec. 31, 2022, and obligated Meta to pay an interest rate of 10.0 per cent per annum and an annual administration fee of 2.5 per cent.
"Today's announcement marks the third time in just over six months that we have amended an existing debt facility to extend the maturity date by more than a year and simultaneously lower the applicable interest rate. Our balance sheet has been significantly strengthened by improving the terms of over $40-million in debt facilities as a result of these transactions. I am grateful for the flexibility shown by our large lenders, which have clearly recognized the rapidly improving fundamentals of the company and our solid execution. Renegotiating credit facilities on more favourable terms is immediately accretive to shareholders and enables the company to use more of its cash for growth," said Raj Grover, president and chief executive officer of High Tide. "I appreciate and commend Onekanew Sinclair and the OCN for coming to this agreement and helping to position High Tide for continued success," added Mr. Grover.
"On behalf of the OCN, I am happy to maintain our support for High Tide and excited about the company's plans for its business and operations in Canada and around the world," said Christian Sinclair, Onekanew (chief) of OCN and board member of High Tide. "I look forward to watching High Tide grow and I am pleased with its acquisition of Meta. I expect this relationship to continue long into the future," added Mr. Sinclair.
In addition, High Tide, Meta and OCN agreed to transition the remaining undrawn balance under the credit facilities, being $6.75-million, from Meta to High Tide, whereby High Tide will have the ability to draw down on the remaining credit balance directly. As such, High Tide and OCN have entered into a loan agreement with OCN for the remaining credit balance, maturing Dec. 31, 2024, which includes the same reduced interest rate of as the credit facilities.
The company's obligations under the remaining credit facility are secured by the assets of the company and select subsidiaries. High Tide's obligations are pursuant to a subordinated security interest (ranking behind the senior creditors of the debtors) granted in favour of OCN and such other persons who may, from time to time, become a party to the security agreement entered into by the parties in connection with outstanding debt of the company.
About High Tide Inc.
High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The company is the largest Canadian retailer of recreational cannabis as measured by revenue, with 67 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment features the Canna Cabana, KushBar, Meta Cannabis Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with additional locations under development across the country. High Tide has been serving consumers for over a decade through its numerous consumption accessory businesses including e-commerce platforms Grasscity and CBDcity, and its wholesale distribution division under Valiant Distribution, including the licensed entertainment product manufacturer Famous Brandz.
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