High Tide Raises Over $18 Million Through Upsized Private Placement of Special Warrants |

CALGARY, Oct. 3, 2018 /CNW/ – High Tide Ventures Inc. (“High Tide” or the “Company”) announced that yesterday it closed the second tranche of a brokered private placement offering (the “Offering”), pursuant to which the Company issued in aggregate 13,307,418 special warrants at a price of $1.38 per special warrant for gross proceeds of $18,364,237. The Offering was upsized by over 83% from an original amount of $10,000,000 due to strong demand from over 135 participating investors. Canaccord Genuity Corp. was the sole lead manager and sole lead bookrunner and the syndicate also included Mackie Research Capital Corporation and Laurentian Bank Securities Inc. The selling group consisted of GMP Securities and Raymond James Ltd.

“The results of the Offering exceeded our expectations and its proceeds will not only enable us to begin executing on a significant number of growth initiatives across western Canada, but the upsized amount will now also empower us to focus more resources on the Ontario market,” said Raj Grover, President & Chief Executive Officer of the Company. “We greatly appreciate the efforts of our syndicate members and assisting parties and we will strive to deploy our investors’ capital to generate strong returns from the downstream cannabis industry,” added Mr. Grover. High Tide is currently in possession of 22 development permits for retail cannabis stores in Alberta and expects to open the maximum permitted number of 37 stores in the province. The Company is also awaiting its wholesale cannabis permit for Saskatchewan, expects to establish the maximum allowed amount of eight retail cannabis stores in British Columbia, and has dispatched a real estate team to secure a large number of leases for retail cannabis locations in Ontario.

Each special warrant is exercisable into one unit of the Company, which is comprised of one common share and one-half of one common share purchase warrant of High Tide. Each whole warrant will be exercisable into a common share of High Tide at a price of $2.07 per warrant, for a period of 24 months from the date on which the common shares are listed and posted on the Canadian Securities Exchange (“CSE”). The exercise of the common share purchase warrants can be accelerated by the Company if its common shares trade at a daily volume-weighted average price greater than $3.45 per share on the CSE for a period of ten consecutive trading days.

In preparation for becoming a publicly-traded issuer, the Company has reserved “HITI” as its ticker symbol on the CSE and expects to submit its preliminary prospectus to the Alberta Securities Commission (“ASC”) in the near future. However, there can be no guarantee that the CSE will accept the listing of the common shares or that the ASC will issue a receipt for the preliminary prospectus.