High Tide (HITI) has closed a C$23 million bought-deal equity financing including exercise in full of the over-allotment option.
The company issued an aggregate of 2,415,000 units at $9.60 per unit for gross proceeds of $23,184,000.
Each unit consists of one High Tide common share and one-half of one common share purchase warrant.
Each warrant entitles the holder to acquire one High Tide common share for $12.25 for 36 months from the closing of the offering.
Rahim Kanji and Shimmy Posen, the CFO and Corporate Secretary of the company, acquired an aggregate of 105,000 units.
The company will use the proceeds for opening new retail cannabis stores, completing strategic acquisitions, repaying debt, and for general corporate and working capital purposes.
ATB Capital Markets and Echelon Wealth Partners led the offering together with Beacon Securities Limited, Desjardins Securities and Roth Canada with A.G.P./Alliance Global Partners as U.S. placement sub agent.
High Tide is a retail-focused cannabis company enhanced by the manufacturing and distribution of consumption accessories. The company operates 85 locations spanning Ontario, Alberta, Manitoba and Saskatchewan.
High Tide (HITI) is down by 2.26 per cent and is currently trading at $9.10 per share as of 12:55 pm ET.