High Tide Announces the Elimination of All META Convertible Debentures
27 August 2021 - 8:02PM
Business Wire
High Tide Inc. (“High Tide” or the “Company”) (TSXV:HITI)
(Nasdaq:HITI) (FSE:2LYA), a retail-focused cannabis corporation
enhanced by the manufacturing and distribution of consumption
accessories, announced today that all outstanding convertible
debentures originally issued by Meta Growth Corp. (“META
Convertible Debentures”) have now been converted into common shares
of High Tide - more than one year prior to their maturity date. The
META Convertible Debentures were previously traded on the TSX
Venture Exchange (TSXV: HITI.DB).
The Company’s total debt balance immediately after closing the
acquisition of META was approximately $71 million, including $21.15
million of META Convertible Debentures. The META Convertible
Debentures have now been extinguished in their entirety, and the
Company’s current total debt balance has been reduced to $28.4
million. Of this amount, $10.8 million is non-interest bearing.
Total debt maturities during the next 12 months from today are $1.6
million. Of the company’s remaining debt profile, $13.4MM is
convertible at an average conversion price of $6.31 per common
share, while $15.0 million is not convertible.
“Since the close of the META acquisition in November 2020 we
have been aggressively driving our business forward, growing the
top line, building new stores and making accretive acquisitions,
with a focus on the U.S. e-commerce market,” said Raj Grover,
President and Chief Executive Officer of High Tide. “Simultaneously
we have been deleveraging our balance sheet, shedding the majority
of our debt while also increasing our cash reserves. This has been
driven in part by the strong performance of our shares which has
resulted in investors converting debt into equity,” added Mr.
Grover.
About High Tide Inc.
High Tide is a retail-focused cannabis company enhanced by the
manufacturing and distribution of consumption accessories. The
Company is the most profitable Canadian retailer of recreational
cannabis as measured by Adjusted EBITDA[1], with 91 current
locations spanning Ontario, Alberta, Manitoba and Saskatchewan.
High Tide’s retail segment features the Canna Cabana, Meta Cannabis
Co., Meta Cannabis Supply Co. and NewLeaf Cannabis banners, with
additional locations under development across the country. High
Tide has been serving consumers for over a decade through its
established ecommerce platforms including Grasscity.com,
Smokecartel.com, Dailyhighclub.com, and Dankstop.com and more
recently in the hemp-derived CBD space through CBDcity.com and
FABCBD.com as well as its wholesale distribution division under
Valiant Distribution, including the licensed entertainment product
manufacturer Famous Brandz. High Tide’s strategy as a parent
company is to extend and strengthen its integrated value chain,
while providing a complete customer experience and maximizing
shareholder value. Key industry investors in High Tide include
Tilray Inc. (TSX: TLRY) (Nasdaq: TLRY) and Aurora Cannabis Inc.
(TSX: ACB) (Nasdaq: ACB).
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
For more information about High Tide Inc., please visit
www.hightideinc.com and its profile page on SEDAR at
www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this news release are forward-looking
information or forward-looking statements. Such information and
statements, referred to herein as “forward-looking statements” are
made as of the date of this news release or as of the date of the
effective date of information described in this news release, as
applicable. Forward-looking statements relate to future events or
future performance and reflect current estimates, predictions,
expectations or beliefs regarding future events. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (generally, forward-looking
statements can be identified by use of words such as “outlook”,
“expects”, “intend”, “forecasts”, “anticipates”, “plans”,
“projects”, “estimates”, “envisages, “assumes”, “needs”,
“strategy”, “goals”, “objectives”, or variations thereof, or
stating that certain actions, events or results “may”, “can”,
“could”, “would”, “might”, or “will” be taken, occur or be
achieved, or the negative of any of these terms or similar
expressions, and other similar terminology) are not statements of
historical fact and may be forward-looking statements.
Such forward-looking statements are based on assumptions that
may prove to be incorrect, including but not limited to the ability
of High Tide to execute on its business plan and that High Tide
will receive one or multiple licenses from Alberta Gaming, Liquor
& Cannabis, British Columbia’s Liquor Distribution Branch,
Liquor, Gaming and Cannabis Authority of Manitoba, Alcohol and
Gaming Commission of Ontario or the Saskatchewan Liquor and Gaming
Authority permitting it to carry on its Canna Cabana Inc. and
KushBar Inc. businesses. High Tide considers these assumptions to
be reasonable in the circumstances. However, there can be no
assurance that any one or more of the government, industry, market,
operational or financial targets as set out herein will be
achieved. Inherent in the forward-looking statements are known and
unknown risks, uncertainties and other factors that could cause
actual results, performance or achievements, or industry results,
to differ materially from any results, performance or achievements
expressed or implied by such forward-looking statements.
The forward‐looking statements contained herein are current as
of the date of this news release. Except as required by law, High
Tide does not have any obligation to advise any person if it
becomes aware of any inaccuracy in or omission from any
forward-looking statement, nor does it intend, or assume any
obligation, to update or revise these forward-looking statements to
reflect new events or circumstances. Any and all forward-looking
statements included in this news release are expressly qualified by
this cautionary statement, and except as otherwise indicated, are
made as of the date of this news release.
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version on businesswire.com: https://www.businesswire.com/news/home/20210827005052/en/
Media Inquiries
Omar Khan Senior Vice President, Corporate and Public Affairs
omar@hightideinc.com
Investor Inquiries
Vahan Ajamian Capital Markets Advisor High Tide Inc. Email:
vahan@hightideinc.com
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