High Tide, a Calgary, Alberta-based cannabis retail chain, drew the final 5 million Canadian dollars ($3.6 million) of a CA$15 million debt facility.
The Canadian retailer drew the first CA$10 million tranche on July 31 and announced it Aug. 2.
According to a Wednesday news release, High Tide will use the additional $5 million to:
- Repay debt that matures on Dec. 31.
- Ongoing development of High Tide’s business model.
- General working capital purposes.
The debt raised by High Tide consisted of CA$1,000 in principal subordinate secured debentures at a price of CA$900 per debenture, according to the release.
Pursuant to the final tranche, High Tide issued 5,000 debentures.
The debentures will mature on July 31, 2029, and carry a 12% annual interest rate, payable quarterly, the release noted.
In connection with closing the initial tranche in August, High Tide issued 230,760 common shares to lenders priced at CA$3.47 per share.
The trustee and collateral agent in the deal is Calgary-based Olympia Trust Co.
Ventum Capital Markets, headquartered in Vancouver, British Columbia, acted as High Tide’s financial adviser in the deal.
Shares of High Tide trade as HITI on the Nasdaq and TSX Venture Exchange.
