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High Tide Inc
Symbol HITI
Shares Issued 512,398,824
Close 2021-02-23 C$ 0.78
Recent Sedar Documents

High Tide holders convert $19.86M of debentures

2021-02-23 07:44 ET - News Release

Mr. Raj Grover reports

HIGH TIDE SIGNIFICANTLY IMPROVES BALANCE SHEET AS A FURTHER $20 MILLION OF DEBT HAS CONVERTED INTO EQUITY AND PROVIDES OTHER UPDATES

High Tide Inc. has provided the following developments to the market.

Conversion of another $20-million of debt

During the period Feb. 1, 2021, to Feb. 19, 2021, various holders of convertible debentures, totalling $19.86-million, have converted their debt into common shares of High Tide in accordance with the terms of the various convertible debentures. These conversions are over and above the $7,365,000 of debt converted per the company's press release dated Feb. 1, 2021, and should save the company an additional $2.4-million in forgone interest costs.

Warrant and option exercise brings in another $3.3-million in proceeds

During the period Jan. 1, 2021, to Feb. 19, 2021, various holders of options and warrants have elected to exercise their respective instruments resulting in $3.3-million of cash proceeds to the company.

Warrants from $23-million bought deal expected to begin trading this week

As communicated in the company's press release dated Feb. 22, 2021, the company closed a $23-million bought deal financing. In connection with the offering, the company issued an aggregate of 23,958,332 common share purchase warrants. Each warrant entitles the holder thereof to purchase one additional common share at an exercise price of 58 cents, for a period of 36 months following the closing of the offering. Today, the company announces that the warrants issued in connection with the offering are expected to begin trading on the TSX Venture Exchange on or about Feb. 25, 2021, under the ticker symbol HITI.WR.

Acquisition update

As communicated in its press release dated Jan. 25, 2021, the company entered into an agreement to acquire Smoke Cartel Inc., a leading e-commerce retailer of consumption accessories, including glass water pipes and vaporizers, as well as hemp-derived CBD (cannabidiol) products. The company's acquisition of Smoke Cartel is proceeding smoothly. As part of the signing of the merger agreement, shareholders owning more than the requisite percentage of required shares (50.1 per cent) executed voting agreements committing to vote to approve the merger. The transaction is now on track to close in the first half of March, 2021.

Concurrently, the company is pleased to report that in addition to Smoke Cartel, it is currently engaged in discussions with multiple parties regarding potential transactions. While these discussions are progressing well, there can be no assurance that any may be consummated.

"Having now closed our $23-million equity offering, and with over $27-million of debt converted so far this fiscal year, High Tide's financial strength has been growing every day and has never been stronger. This has not gone unnoticed by a large number of companies which have reached out to High Tide viewing us as their potential partner of choice. Given our integrated model, this includes not just other cannabis retailers in Canada, but also companies across other areas of the value chain -- including accessories manufacturers and brands, other e-commerce retailers, and CBD companies in the United States," said Raj Grover, president and chief executive officer of High Tide. "With our existing profitable operations and strong balance sheet, it is game on for acquisitions at High Tide. We plan to be aggressive in pursuing transactions which would be accretive to our shareholders immediately, as well as those that can further position us to quickly take advantage of the fast evolving regulatory and legislative landscape in the United States," added Mr. Grover.

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 70 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. High Tide's strategy as a parent company is to extend and strengthen its integrated value chain, while providing a complete customer experience and maximizing shareholder value. Key industry investors in High Tide include Aphria Inc. and Aurora Cannabis Inc.

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