High Tide receives approval for $40M of facilities

Executive Summary

• High Tide Inc. has secured credit approval for a C$40 million senior secured credit facility with Bank of Montreal (BMO), which will replace the company's existing senior credit facility upon closing.
• The new facility consists of a C$25 million committed revolving facility and a C$15 million committed delayed draw term loan, designed to refinance existing debt and provide working capital.
• Closing is expected within approximately 30 days, subject to customary conditions, and will result in materially lower-cost capital for the company's next growth phase.

Key Details

• Total Facility Amount: C$40 million senior secured credit facilities
• Lender: Bank of Montreal (BMO)
• Facility Structure:
• C$25 million committed revolving facility with a three-year maturity
• C$15 million committed delayed draw term loan
• Use of Proceeds (Revolving Facility): Refinance existing loan with connectFirst (expected balance of slightly over C$6 million at closing), general working capital, corporate requirements, and permitted acquisitions/investments. Approximately C$19 million of available capacity will remain post-refinance.
• Use of Proceeds (Term Loan): Refinance the company's existing C$15 million second-lien debentures
• Closing Conditions: Subject to satisfaction of customary closing conditions
• Expected Timeline: Funds to become available and existing senior credit facility to be repaid upon closing, anticipated within approximately 30 days of the release

Notable Quotes

• "This is a defining moment for High Tide and speaks volumes about the scale, consistency and quality of what we have built. Our new senior lender's facility translates directly into materially lower-cost capital as we enter our next phase of growth," said Raj Grover, founder and chief executive officer of High Tide.