CALGARY, AB, Oct. 18, 2021 /PRNewswire/ - High Tide Inc.
("High Tide" or the "Company") (TSXV: HITI) (Nasdaq:
HITI) (FSE: 2LYA), a leading retail-focused cannabis company with
bricks and mortar as well as global e-commerce assets, announced
today that it has entered into a credit agreement to establish a
revolving credit facility with ATB Financial ("ATB") in an
amount of up to $25 million
(comprised of an initial $10 million
limit and $15 million accordion, the
"Facility"), with an expected interest rate of less than 6%
per annum.
"We are extremely pleased to finalize this facility today. We
know that our shareholders have been looking forward to us securing
non-dilutive financing from a leading Canadian bank, and this is
also something that we have been working on for some time as we
believe that it provides validation of our improved financial
profile," said Raj Grover, President and Chief Executive Officer of
High Tide. "This is great news for our shareholders as this credit
facility provides us with the firepower to continue our business
growth and acquisitions of quality businesses, which are
synergistic with our overall ecosystem, while limiting the dilution
of our existing shareholder base. We also expect the facility
amount to increase in the future as our EBITDA increases, allowing
us to realize arbitrage opportunities through accretive
acquisitions while limiting the dilution necessary to fuel
expansion. I remain excited about High Tide's growth prospects for
the remainder of 2021 and throughout 2022, and look forward to
sharing continued positive developments in our company with our
shareholders," added Mr. Grover.
The Facility, which will become effective by end of business
today, will consist of senior secured prime rate loans, U.S. base
rate loans, LIBOR loans, letters of credit, Bankers' Acceptances
and a Corporate MasterCard.
The Facility has an initial term of three years and provides
High Tide, upon completion of customary conditions, with access to
an initial $10 million in capital
that can be drawn down at High Tide's discretion (the "Initial
Facility Amount"), and subject to satisfaction of certain
conditions, will provide High Tide with access to an additional
$15 million in capital. The Company
expects to have cleared customary conditions for the first draw by
the end of its fiscal year ending October
31, 2021. Proceeds from the Facility are expected to be used
to finance acquisitions as well as working capital and for general
corporate purposes. Amounts drawn down under the Facility will bear
interest calculated on the basis of the Company's adjusted
debt-to-EBITDA ratio, which is expected to yield an effective
interest rate of less than 6% per annum.
Separately, the Company also announced that a further
$1.0 million of debt has been
converted into equity, which brings the Company's total outstanding
debt balance to $27.4 million as of
today. Of this amount, only $1.6
million matures during the next 12 months.
About High Tide Inc.
High Tide is a leading retail-focused cannabis company with
bricks and mortar as well as global e-commerce assets. The Company
is the largest Canadian retailer of recreational cannabis as
measured by revenue, with 101 current locations spanning
Ontario, Alberta, Manitoba and Saskatchewan, and was featured in the third
annual Report on Business Magazine's ranking of Canada's Top Growing Companies in 2021. High
Tide's retail segment features the Canna Cabana, 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
established ecommerce platforms including Grasscity.com,
Smokecartel.com, Dailyhighclub.com, and Dankstop.com and more
recently in the hemp-derived CBD space through CBDcity.com and
FABCBD.com as well as 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. (TSX: TLRY) (Nasdaq: TLRY) and Aurora Cannabis Inc.
(TSX: ACB) (Nasdaq: ACB).
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
For more information about High Tide Inc., please visit
www.hightideinc.com, its profile page on SEDAR at www.sedar.com,
and its profile page on EDGAR at www.sec.gov.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this news release are forward-looking
information or forward-looking statements. Such information and
statements, referred to herein as "forward-looking statements" are
made as of the date of this news release or as of the date of the
effective date of information described in this news release, as
applicable. Forward-looking statements relate to future events or
future performance and reflect current estimates, predictions,
expectations or beliefs regarding future events. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (generally, forward-looking
statements can be identified by use of words such as "outlook",
"expects", "intend", "forecasts", "anticipates", "plans",
"projects", "estimates", "envisages, "assumes", "needs",
"strategy", "goals", "objectives", or variations thereof, or
stating that certain actions, events or results "may", "can",
"could", "would", "might", or "will" be taken, occur or be
achieved, or the negative of any of these terms or similar
expressions, and other similar terminology) are not statements of
historical fact and may be forward-looking statements.
Such forward-looking statements are based on assumptions that
may prove to be incorrect, including but not limited to the ability
of High Tide to execute on its business plan and that High Tide
will receive one or multiple licenses from Alberta Gaming, Liquor
& Cannabis, British Columbia's
Liquor Distribution Branch, Liquor, Gaming and Cannabis Authority
of Manitoba, Alcohol and Gaming
Commission of Ontario or the
Saskatchewan Liquor and Gaming Authority permitting it to carry on
its Canna Cabana Inc. and KushBar Inc. businesses. High Tide
considers these assumptions to be reasonable in the circumstances.
However, there can be no assurance that any one or more of the
government, industry, market, operational or financial targets as
set out herein will be achieved. Inherent in the forward-looking
statements are known and unknown risks, uncertainties and other
factors that could cause actual results, performance or
achievements, or industry results, to differ materially from any
results, performance or achievements expressed or implied by such
forward-looking statements.
The forward–looking statements contained herein are current
as of the date of this news release. Except as required by law,
High Tide does not have any obligation to advise any person if it
becomes aware of any inaccuracy in or omission from any
forward-looking statement, nor does it intend, or assume any
obligation, to update or revise these forward-looking statements to
reflect new events or circumstances. Any and all forward-looking
statements included in this news release are expressly qualified by
this cautionary statement, and except as otherwise indicated, are
made as of the date of this news release.
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SOURCE High Tide Inc.