- Canadian cannabis retailer High Tide Inc. ( NASDAQ: HITI ) announced Thursday an agreement with Connect First Credit Union Ltd. in Canada to obtain a C$19M of credit line for an initial five-year term.
- Per the binding commitment letter, the debt will be available at connectFirst's floor interest rate with terms including a debt service coverage ratio of not less than 1.40:1 and a monthly current ratio covenant of not less than 1.25:1.
- The company expects to use the proceeds from the credit facility on organic growth, general working capital, and potential M&A activities.
- Welcoming the agreement, Raj Grover, Chief Executive of High Tide ( HITI ), remarked: "I remain as confident as ever in High Tide's growth trajectory in Canada, the United States, and newly-emerging international markets."
- HITI expects to close on the debt facility during the first half of September, subject to certain conditions.
- The agreement follows a C$5M subordinated debt financing the company secured several weeks ago.
For further details see:
High Tide gets access to C$19M credit facility