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(CNW) Calgary – High Tide Inc., the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced today that it has closed the Final Tranche (as defined herein) of its previously disclosed subordinated debt facility of $1,000 principal subordinate secured debentures of the Company for aggregate gross proceeds of $15 million at a price of $900 per Debenture, pursuant to subscription agreements with arm’s length institutional credit providers. Pursuant to the Final Tranche, the Company issued 5,000 Debentures.
The Debentures will mature on July 31, 2029, and bear interest at a fixed rate of 12% per annum on drawn amounts, payable quarterly. The Debentures are governed by the terms and conditions of a debenture trust indenture between the Company and Olympia Trust Company in its capacity as trustee and collateral agent. The Company may redeem the Debentures at any time prior to maturity, in whole or in part, upon sixty days’ notice and payment of certain penalties as applicable. The Company’s obligations under the Debentures are collaterally secured by general security and guarantee agreements from the Company and certain subsidiaries of the Company and rank in second position to the Company’s existing senior lender.
Pursuant to the terms of the subscription agreements, the Debentures were to be drawn in two tranches: (i) $10,000,000 principal amount which was previously drawn on July 31, 2024, and (ii) $5,000,000 principal amount which has now been drawn.
Ventum Capital Markets is acting as financial advisor to the Corporation in connection with arranging the Facility.
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The net proceeds of the Facility will be used for debt repayment maturing on December 31, 2024 ongoing development of the Company’s business model and general working capital purposes.
All figures are expressed in Canadian dollars unless otherwise noted.
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