Canadian cannabis retailer and e-commerce platform provider High Tide has finalized a credit line of 15 million Canadian dollars ($10.9 million) from institutional creditors.
The debt financing, according to a news release, was issued at $900 per debenture, a type of secured loan similar to a bond that can be used to raise business capital.
The debentures, drawn from two tranches, will mature on July 31, 2029, and carry a fixed-interest rate of 12% per year on drawn amounts, payable quarterly.
The first $10 million tranche was accessed upon closing, and a $5 million tranche will be drawn in November, according to the company.
In connection with closing the transaction, High Tide issued 230,760 common shares to lenders priced at $3.47 per share.
The company said it plans to use the proceeds for debt repayment, business development and general working-capital purposes.
The Alberta-based operator hired a new chief financial officer in May.
That move came a little more than a month after High Tide entered a definitive agreement to acquire high-end brand Queen of Bud, including all intellectual property, trademarks and other assets, for CA$1 million.
High Tide shares trade as HITI on the Nasdaq and TSX Venture Exchange.
