High Tide eliminates senior secure notes as it looks to expand

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The cannabis company has converted a large portion of its debt, allowing it to explore new options

Good news has arrived for High Tide, a cannabis company focused on retail enhanced by the manufacture and distribution of consumer accessories. According to the latest reports, the company has become debt-free from its senior secured lender after this entity decided to convert substantially all of its debt into High Tide common stock. This represents great relief for the company, as it will now have one less obstacle to finalizing an outstanding credit facility it has with a Canadian bank on standard commercial terms.

Hight Tide’s last six months have been quite good with respect to debt relief, eliminating about $40 million in total. Raj Grover, president and CEO of the company, said, “With our recently closed $23.6 million equity offering and total debt currently at $31.6 million, of which only $3.8 million matures in the next twelve months, High Tide’s financial strength has never been stronger. Having reported adjusted EBITDA of $4.6 million for our last quarter ended January 31, 2021, which did not include the contribution from two acquisitions we subsequently closed, we believe we are a prime candidate to obtain traditional non-dilutive bank debt and are in late-stage discussions with a leading bank on that front.”

As if this good news wasn’t enough, Hight Tide also just announced its addition to the AdvisorShares Pure Cannabis ETF (exchange-traded fund), which continues to add extra value to the already highly regarded company. There is no doubt that inclusion in an ETF of this magnitude represents the confidence that institutional investors have in the company, especially when it comes to its growth strategy and business plan.