Debra Borchardt
High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) closed on a $19 million senior secured credit facility with connectFirst Credit Union Ltd., with an initial 5-year term, at connectFirst’s floor interest rate. The company said its plan was to use the proceeds to expand its store count.
“I am extremely pleased that we have successfully closed the Credit Facility with connectFirst today. Our business has been on an impressive upward trajectory for the past few years, and we are now able to further capitalize on this strong momentum with this facility in place. Our growth has been amplified since we launched our innovative discount club model in October 2021, and we are now operating 140 Canna Cabana locations across Canada with 36 additional stores having been added to our portfolio year to date through organic growth and accretive acquisitions. Our goal is to continue gaining market share rapidly by increasing our store count to 150 by the end of this calendar year and to 200 by the end of 2023. This Credit Facility from connectFirst will help us do exactly that and give us the ability to pour even more fuel on the fire,” said Raj Grover, President and Chief Executive Officer of High Tide.
“We will have access to $19 million, upon completion of customary conditions, which we can use to open more stores organically, and invest in working capital and capital expenditures without having to issue equity to fund these growth drivers. We expect that as our business continues to grow, and as we execute on our communicated business plan, the amount of funding we can obtain from connectFirst will also increase in tandem, propelling our rapid expansion in the future. I would like to take this opportunity to thank connectFirst and look forward to building our relationship further,” added Grover.
High Tide recently reported that its third-quarter revenue was rising. Green Market Report wrote on September 14th that High Tide’s third-quarter revenue totaled C$95.4 million, up 18% over the second quarter and up 98% over the same period last year. The company shaved its net loss down to C$2.72 million versus C$12 million a year ago and C$8 million sequentially. Earnings went for a loss of five cents per share versus a loss of three cents per share in the same period last year.
At the end of July, High Tide had total liabilities of $107 million including notes payable of $12 million, convertible debentures totaling $7 million, and lease liabilities of $25 million. the stock was slipping in early trading by 3%.
