High Tide Inc. (“High Tide” or the “Company”) (Nasdaq: HITI) (TSXV: HITI) (FRA:2LYA), a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that the Company’s senior secured lender has converted substantially all of its debt into common shares of the Company (the “Common Shares”), removing one of the remaining obstacles for High Tide to finalize a credit facility with a Canadian bank on standard commercial terms. Over the last six months, High Tide has eliminated over $40 million of debt.
“With our recently closed $23.6 million equity offering, and total debt currently sitting at $31.6 million – of which only $3.8 million is due in the next twelve months – High Tide’s financial strength has never been stronger. Having reported Adjusted EBITDA of $4.6 million for our latest quarter ended January 31, 2021, which did not include the contribution of two acquisitions we have subsequently closed, we feel we are a prime candidate to obtain traditional non-dilutive bank debt, and we are in late-stage discussions with a leading bank on that front,” said Raj Grover, President and Chief Executive Officer of High Tide.
In addition, High Tide is pleased to announce that it has been added to the AdvisorShares Pure Cannabis ETF (NYSE: YOLO) (“YOLO“). Listed on New York Stock Exchange’s Archipelago Exchange, YOLO was the first actively managed ETF with a dedicated cannabis investment mandate domiciled in the United States along side AdvisorShares’ Pure US Cannabis ETF (NYSE: MSOS), a sister fund to YOLO, which focuses on US multi-state operators (MSO) and other domestic companies in the cannabis industry.
“Our inclusion in the AdvisorShares’ ETF once again demonstrates the confidence that institutional investors have in High Tide’s business plan and growth strategy, particularly with respect to the United States. Coupled with our track record of profitability and sustainable growth, this inclusion allows us to further broaden our visibility with North American investors. Getting included in this ETF within our first week of being listed on Nasdaq validates our belief that institutions and ETFs will continue to take positions in High Tide. We continue to relentlessly pursue value-add opportunities for shareholders. In just the first eight days of June, we announced the opening of three stores, listed our shares on Nasdaq, were added to another high-profile ETF, and eliminated our senior debt,” added Mr. Grover.
