Canadian cannabis retail chain High Tide secured a credit facility worth 19 million Canadian dollars ($14.7 million) from Alberta credit union ConnectFirst.
The nondilutive financing was originally going to be worth CA$30 million when High Tide first announced it in April.
However, High Tide has since renegotiated the loan “to provide a larger immediately-accessible facility for High Tide, with a smaller total commitment from ConnectFirst initially – which High Tide expects will grow over time,” according to a Thursday news release.
Calgary, Alberta-based High Tide did not specify how much the credit facility could grow.
Delays in securing the credit facility led High Tide to issue equity as a “proactive” measure, raising CA$11.5 million in July.
The new credit facility has an initial five-year term and an unspecified interest rate described as “low” by High Tide.
Proceeds will be used “to fund continued organic growth, general working capital requirements, and potential future (merger and acquisition) activities,” the release notes.
High Tide expects the credit facility to close in September.
The retailer lists 139 operating cannabis retail locations in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan, with a target of at least 150 by the end of 2022.
ConnectFirst has also loaned money to Delta 9 Cannabis.