High Tide Inc V.HITI

High Tide Announces Upsized Bought Deal Equity $20 million

[zebra999]

Updated  Tue, February 2, 2021, 9:27 AM ·7 min read

 

 

/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

CALGARY, AB, Feb. 2, 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 announce that it has entered into an amended letter agreement with ATB Capital Markets Inc. ("ATB") and Echelon Wealth Partners Inc. ("Echelon"), on behalf of a syndicate of underwriters (together, the "Underwriters"), to increase the size of the previously announced "bought deal" short-form prospectus offering of units of the Company (the "Units"), to 41,666,666 Units at a price of $0.48 per Unit (the "Issue Price") for aggregate gross proceeds of approximately $20,000,000 (the "Offering").

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

Each Unit will be comprised of one common share of the Company (a "Common Share") and one half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.58, for a period of 36 months following the closing of the Offering.

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 15% of the Units at the Issue Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering. If this option is exercised in full, approximately $3,000,000 in additional proceeds will be raised pursuant to the Offering and the aggregate proceeds of the Offering will be approximately $23,000,000.

The Company intends to use the net proceeds of the Offering for opening new retail cannabis store locations, completing strategic acquisitions, general corporate and working capital purposes, and for such other purposes as to be described in the Prospectus (as defined below).