Benzinga | May 19, 2021 10:27AM EDT

Cannabis Retailer High Tide To Raise $15M Via Bought Deal Offering Led By ATB Capital Markets And Echelon Wealth Partners

High Tide Inc. (TSXV:HITI) (OTCQB:HITIF) (FRA: 2LY) will raise $15 million via a bought deal public offering with ATB Capital Markets and Echelon Wealth Partners Inc. on behalf of a group of underwriters.

The Canadian cannabis retailer confirmed Tuesday that it had signed an agreement with the underwriters, by which they would purchase a total of 1.56 million units at a price of $9.60 per unit. In this way, High Tide will collect total gross proceeds in the amount of $15 million.

Under the offering, each unit will consist of one common share and one-half of one share purchase warrant of the company. Each warrant can be used to buy one share of the company in the following 36 months upon closing the offering at a price of $12.25 per warrant.

High Tide has enabled the underwriters to buy up to an extra 234,374 units at the offering price per unit, exercisable at any time in the following 30 days, which could yield extra proceeds of up to $2.25 million.

The offering is expected to be finalized on May 25th, upon collecting all the required regulatory and stock exchange approvals.

High Tide noted that net proceeds of the offering will be used to open new retail cannabis shops, finalize purchases, repay its debt and fund standard business operations.

Recently, High Tide revealed it will buy 80% of Fab Nutrition, LLC. for $20.64 million in stock and cash. Fab Nutrition, doing business as FABCBD is an online retailer of hemp-derived CBD products.

Calgary, Alberta-headquartered High Tide claims it is the most profitable Canadian retailer of adult-use cannabis on an adjusted EBITDA basis. Key investors in High Tide include giant Canadian cannabis companies such as Aphria Inc. (TSX: APHA) (NYSE:APHA) and Aurora Cannabis Inc. (NYSE:ACB) (TSX: ACB).



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