High Tide Inc. (NASDAQ:HITI) (TSXV:HITI) (FSE:2LYA) has entered into a binding commitment letter with Connect First Credit Union Ltd. for a CA$19 million ($14.73 million) credit facility with an initial 5-year term, at connectFirst’s floor interest rate. The terms of the credit facility were renegotiated with connectFirst to provide a larger immediately-accessible facility for High Tide, with a smaller total commitment from connectFirst initially - which High Tide expects will grow over time. Upon closing the credit facility with connectFirst, the company expects to use the proceeds to fund continued organic growth, general working capital requirements, and potential future M&A activities.
“I am very happy to provide this positive update today. Our business remains on a strong footing and we continue to gain traction as the leader in the Canadian cannabis retail market. Once in place, this facility will help us continue to propel our growth in an increasingly non-dilutive fashion. Through our conversations with connectFirst, we expect that this line will expand in tandem with our business growth, as we continue to execute on our conveyed business plan. This will enable us to capitalize on attractive M&A and organic opportunities in North America and Europe,” stated Raj Grover, president and CEO of High Tide.
