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High Tide Inc (2)
Symbol HITI
Shares Issued 44,381,607
Close 2021-05-18 C$ 10.46
Recent Sedar Documents

High Tide arranges $15-million bought deal offering

2021-05-18 17:38 ET - News Release

Mr. Omar Khan reports

HIGH TIDE ANNOUNCES $15.0 MILLION BOUGHT DEAL PUBLIC OFFERING

High Tide Inc. has entered into an agreement with ATB Capital Markets Inc. and Echelon Wealth Partners Inc. on behalf of a syndicate of underwriters.

The underwriters have agreed to purchase, on a bought deal basis, pursuant to the filing of a prospectus supplement to the company's short form base shelf prospectus dated April 22, 2021, an aggregate of 1,562,500 units at a price of $9.60 per unit for aggregate gross proceeds to the company of $15-million.

Each unit shall consist of one common share and one-half of one common share purchase warrant of the company. Each warrant shall be exercisable to acquire one common share of the company for a period of 36 months from closing of the offering at an exercise price of $12.25 per warrant, subject to an accelerated expiry if the 10-trading-day volume-weighted average price of the common shares on the TSX Venture Exchange is equal to or greater than $19.20 per common share.

The company has granted the underwriters an option to purchase up to an additional 234,374 units at the offering price per unit, exercisable at any time, for a period of 30 days after and including the closing date, which would result in additional proceeds of up to $2,249,990.40. The overallotment option is exercisable to acquire units, common shares and/or warrants (or any combination thereof) at the discretion of the underwriters.

The units will be offered by way of a prospectus supplement to the base shelf prospectus to be filed in all provinces and territories of Canada except Quebec pursuant to National Instrument 44-101 (Short Form Prospectus Distributions) and National Instrument 44-102 (Shelf Distributions). The units may also be offered in the United States on a private placement basis pursuant to applicable exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended.

The offering is expected to close on May 25, 2021, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX-V and the applicable securities regulatory authorities.

The company will use best efforts to obtain the necessary approvals to list the common shares and the common shares issuable upon exercise of the warrants on the TSX-V.

The net proceeds of the offering will be used for opening new retail cannabis store locations, completing strategic acquisitions, the repayment of debt, and general corporate and working capital purposes.

The prospectus supplement and base shelf prospectus contain important detailed information about the company and the proposed offering. Prospective investors should read the prospectus supplement, base shelf prospectus and the other documents the company has filed before making an investment decision. Copies of the prospectus supplement, following filing thereof, and the base shelf prospectus will be available on SEDAR.

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 EBIDTA (earnings before interest, taxes, depreciation and amortization) (1) 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, FABCBD 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 Tilray Inc. and Aurora Cannabis Inc.

(1) Adjusted EBITDA is a non-international financial reporting standard measure.

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