High Tide has announced that it has successfully completed a restructuring of approximately $8.9 million of the company’s outstanding debt held by a key industry lender under a senior secured convertible debenture.
The 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.
This will be at a deemed price of $2.0168 per High Tide Share, to the Key Lender, subject to prior approval and compliance with the policies of the TSX Venture Exchange.
Upon the Outstanding Structured Payment being satisfied in High Tide Shares, the outstanding amount of the Debenture will be reduced proportionately.
Raj Grover, Founder and Chief Executive Officer of High Tide, commented: “I’m excited to announce the restructuring of the debenture, which creates more flexibility on our balance sheet as we start pushing the momentum on new store openings again. Recall that at the beginning of 2021, just after the acquisition of META, our gross debt stood at approximately 65 million dollars.
“Over the past three years, we have now cut our outstanding debt in half to 32 million dollars today, representing just 1.2 times the Adjusted EBITDA we reported over the past four quarters.
“While eliminating this debt, we have simultaneously grown High Tide to an annual revenue run rate exceeding half a billion dollars and generated 4.1 million dollars in free cash flow during our last reported quarter, ending it with a cash balance exceeding 25 million dollars. As mentioned during our last quarterly call, with regular payments coming due, amending the terms of this debt was a priority for us, as it now allows us to allocate more cash toward the acceleration of organic store openings.
“On that front, we have secured more than fifteen premiere locations, with more in the pipeline, and we are excited to now crystalize these opportunities to generate even more cash for shareholders.”