Mr. Omar Khan reports
HIGH TIDE COMMENCES TRADING ON CONSOLIDATED BASIS
Further to its press release dated May 12, 2021, all of High Tide Inc.'s issued and outstanding common shares began trading on a postconsolidation basis on May 13, 2021.
On May 12, 2021, the company announced that the common shares would be consolidated on the basis of one postconsolidation common share for each 15 preconsolidation common shares. The share consolidation represents another step toward the listing of the common shares on the Nasdaq Stock Market LLC by meeting the minimum share price requirement set by Nasdaq.
The share consolidation has reduced the number of existing common shares from 690,834,719 common shares to approximately 46,055,653 common shares. A letter of transmittal was sent by mail to registered shareholders advising that the share consolidation has taken effect. The letter of transmittal contains instructions on how registered shareholders can exchange their share certificates or Direct Registration System (DRS) statements evidencing their preconsolidation common shares for new share certificates or new DRS statements representing the number of postconsolidation common shares to which they are entitled.
As disclosed on the press release dated May 12, 2021, there are currently 35,193,728 common share purchase warrants originally issued by Meta Growth listed for trading on the TSX Venture Exchange. As a result of the share consolidation, the number of listed common warrants outstanding was not altered; however, the exercise terms were adjusted in accordance with the terms of the warrant indenture dated Feb. 26, 2020, as supplemented on Nov. 16, 2020, such that 15 Meta warrants are now exercisable for 0.824 postconsolidation common share following the payment of an adjusted price of $4.35, meaning that effectively holders of Meta warrants will be entitled to receive one postconsolidation common share upon exercising 18.2 Meta warrants and paying $5.28.
Furthermore, there are currently 23,958,332 common shares purchase warrants originally issued as a part of a bought deal listed for trading on the TSX Venture Exchange. As a result of the share consolidation, the number of company warrants outstanding was not altered; however, the exercise terms were adjusted in accordance with the terms of the warrant indenture dated Feb. 22, 2021, such that 15 High Tide warrants are now exercisable for one postconsolidation common share following the payment of an adjusted price of $8.70.
In addition, there are currently $900,000 principal amount of convertible debentures originally issued by Meta Growth listed for trading on the TSX-V. As a result of the share consolidation, the number of listed convertible debentures outstanding was not altered; however, the conversion terms were adjusted in accordance with the terms of the debenture indenture dated Nov. 23, 2018, as supplemented on Nov. 16, 2020, such that conversion price is now adjusted to $3.30 per one postconsolidation common share.
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 most profitable Canadian retailer of recreational cannabis as measured by adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), with 85 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, Smokecartel, CBDcity and Fabcbd, 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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