High Tide Inc V.HITI

High Tide Significantly Improves Balance Sheet.

[zebra999]

Tue, February 23, 2021, 3:00 AM ·7 min read

 

 

•  

   

  More content below

CALGARY, AB, Feb. 23, 2021 /CNW/ - High Tide Inc. ("High Tide" or the "Company") (TSXV: HITI) (OTCQB: HITIF) (FRA: 2LY), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to communicate the following developments to the market.

High Tide Inc. (CNW Group/High Tide Inc.)

Conversion of Another $20 million of Debt

During the period February 1, 2021 to February 19, 2021 various holders of convertible debentures, totaling $19,860,000 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 February 1, 2021, and should save the Company an additional $2.4 million in forgone interest costs.

 

Warrants and Options Exercise Bring in Another $3.3 million in Proceeds

During the period January 1, 2021 to February 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 our press release dated February 22, 2021, the Company closed a $23 million bought deal financing (the "Offering"). In connection with the Offering, the Company issued an aggregate of 23,958,332 Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one additional Common Share at an exercise price of $0.58, 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 February 25, 2021, under the ticker symbol "HITI.WR".

Acquisition Update

As communicated in its press release dated January 25, 2021, the Company entered into an agreement to acquire Smoke Cartel, Inc. ("Smoke Cartel") (OTCQB: SMKC), a leading e-commerce retailer of consumption accessories, including glass water pipes and vaporizers, as well as hemp derived CBD 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%) 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

• HITIF

  -1.35%