HITI - Canadian Weed Retail Giant Restructures Nearly $9M Of Debt Here's What's Next | Benzinga
Cannabis retailer High Tide Inc. (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA) has successfully completed a restructuring of roughly $8.9 million of the company's outstanding debt held by a key industry lender under a senior secured convertible debenture issued on July 23, 2020, as amended, maturing on January 1, 2025.
What Happened
Under the terms of a debt restructuring agreement dated July 23, 2020, as amended, both parties have agreed to settle the outstanding structured installment payments, which equals the aggregate sum of $5,024,546, in common shares in the capital of High Tide at a deemed price of $2.0168 per the company’s share, to the key lender.
Upon the outstanding structured payment being satisfied in High Tide shares, the outstanding amount of the debenture will be reduced proportionately.
Future structured payments have been changed from a quarterly obligation to a semi-annual obligation, and each remaining structured payment may be paid in cash or satisfied in free trading High Tide shares, provided that:
- High Tide provides the key lender thirty days prior written notice of its intention to make a structured payment in free trading High Tide Shares;
- The key lender, at its sole unfettered discretion, does not provide notice to High Tide at least ten days before the applicable structured payment is due, that a portion ...