CALGARY, June 17, 2019 /CNW/ – High Tide Inc. (“High Tide” or the “Company”) (CSE:HITI) (OTCQB:HITIF) (FRA:2LY), an Alberta-based, retail-focused cannabis corporation enhanced by the manufacturing and wholesale distribution of smoking accessories and cannabis lifestyle products, today announced that it has closed the final tranche (the “Final Tranche”) of the sale of unsecured convertible debentures (the “Debentures”) of the Company under the non-brokered private placement (the “Offering”) previously announced on April 10, 2019. Gross proceeds from the Final Tranche were $3,200,000 and included a subsequent investment of $1,000,000 from Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), one of the Company’s key industry partners.
Total gross proceeds of $11,560,000 were received under the Offering, which is higher than the original goal of $10,000,000 due to strong investor demand. The net proceeds of the Offering will be used by the Company to fund the ongoing construction of Canna Cabana, KushBar and Smoker’s Corner retail stores, complete strategic acquisitions as well as for general working capital purposes. The outstanding principal amount under the Debentures is convertible at any time before maturity and at the option of the holder, into common shares of the Company (the “Shares”) at a conversion price of $0.75 per Share.
Under the Final Tranche of the Offering, the Company also issued common share purchase warrants (the “Warrants”) such that each subscriber received one Warrant for each $0.75 original principal amount of its Debenture, resulting in 4,266,667 Warrants being issued as part of the Offering. Each Warrant entitles the holder to acquire one Share at an exercise price of $0.85 per Share for two years from the date of issuance. Concurrent with the Final Tranche issuance of the Debentures, the Company paid the annual amount of interest due to holders upfront in the form of 855,615 Shares.