High Tide Extends Maturity Date and Reduces Interest Cost High Tide Extends Maturity Date and Reduces Interest Cost of $20 Million Credit Facility
"Today's announcement marks the third time in just over six months that we have amended an existing debt facility to extend the maturity date by more than a year and simultaneously lower the applicable interest rate. Our balance sheet has been significantly strengthened by improving the terms of over $40 million in debt facilities as a result of these transactions. I am grateful for the flexibility shown by our large lenders, which have clearly recognized the rapidly improving fundamentals of the Company and our solid execution. Renegotiating credit facilities on more favourable terms is immediately accretive to shareholders and enables the Company to use more of its cash for growth," said Raj Grover, President and Chief Executive Officer of High Tide. "I appreciate and commend Onekanew Sinclair and the OCN for coming to this agreement and helping to position High Tide for continued success," added Mr. Grover.
"On behalf of the OCN, I am happy to maintain our support for High Tide and excited about the Company's plans for its business and operations in Canadaand around the world," said Christian Sinclair, Onekanew (Chief) of OCN and Board Member of High Tide. "I look forward to watching High Tide grow and I am pleased with its acquisition of Meta. I expect this relationship to continue long into the future," added Onekanew Sinclair.
In addition, High Tide, Meta and OCN agreed to transition the remaining undrawn balance under the Credit Facilities, being $6,750,000 (the "Remaining Credit Balance"), from Meta to High Tide, whereby High Tide will have the ability to draw down on the Remaining Credit Balance directly. As such, High Tide and OCN have entered into a loan agreement with OCN for the Remaining Credit Balance (the "Remaining Credit Facility"), maturing December 31, 2024, which includes the same reduced interest rate of as the Credit Facilities.
The Company's obligations under the Remaining Credit Facility are secured by the assets of the Company and select subsidiaries (the "Debtors"). High Tide's obligations are pursuant to a subordinated security interest (ranking behind the senior creditors of the Debtors) granted in favour of OCN and such other persons who may, from time to time, become a party to the security agreement entered into by the parties in connection with outstanding debt of the Company.