High Tide Restructures $8.9 Million of Outstanding Secured Debt
Summary
This news release constitutes a "designated news release" for the purposes of the Companys prospectus supplement dated August 31, 2023, to its short-form base shelf prospectus dated August 3, 2023CALGARY, AB, Nov. 1, 2023 /PRNewswire/ - High Tide Inc. ("High Tide" or the "Company") (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, is pleased to announce that it has successfully completed a restructuring (the "Debt Restructuring") of approximately $8.9 million of the Companys outstanding debt held by a key industry lender ("Key Lender" and together with High Tide, the "Parties") under a senior secured convertible debenture issued on July 23, 2020, as amended, maturing on January 1, 2025 (the "Debenture") pursuant to a debt restructuring agreement dated July 23, 2020, as amended, entered into between the parties (the "Debt Restructuring Agreement").Pursuant to the terms of the Debt Restructuring Agreement, the parties have agreed to settle the outstanding structured installment payments, which equals the aggregate sum of $5,024,546 (the "Outstanding Structured Payment"), in common shares in the capital of High Tide ("High Tide Shares") at a deemed price of $2.0168 per High Tide Share, to the Key Lender (each an "Installment Share"), subject to prior approval and compliance with the policies of the TSX Venture Exchange ("TSXV"), calculated on basis of a deemed price per High Tide Share equal to the ten (10) day volume-weighted average trading price (in Canadian dollars) of the High Tide Shares on the TSXV ("VWAP") ending on October 31, 2023. If both conditions have been met, subject to prior approval by the TSXV, High Tide shall be entitled to satisfy the applicable Structured Payment, or the remaining portion thereof, through the issuance of Installment Shares, calculated on the basis of a deemed price per High Tide Share equal to the ten (10) day VWAP ending on the day prior to the public announcement of such issuance.The Installment Shares issued in connection with the Outstanding Structured Payment, and any Installment Shares issued in settlement of any future Structure Payments, shall be subject to certain resale, volume and trading restrictions as agreed by the Parties.High Tides obligations under the Debenture are secured by the assets of High Tide and certain of its subsidiaries (the "Debtors") pursuant to a subordinated security interest (ranking behind the senior creditors of the Debtors) granted in favour of the Key Lender 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 the Debt Restructuring. "Im excited to announce the restructuring of the debenture, which creates more flexibility on our balance sheet as we start pushing the momentum on new store openings again. As mentioned during our last quarterly call, with regular payments coming due, amending the terms of this debt was a priority for us, as it now allows us to allocate more cash toward the acceleration of organic store openings. On that front, we have secured more than fifteen premiere locations, with more in the pipeline, and we are excited to now crystalize these opportunities to generate even more cash for shareholders, " added Mr. Grover.High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the worlds most powerful plant.