CALGARY, AB, June 8, 2021 /CNW/ - High Tide Inc.
("High Tide" or the "Company") (Nasdaq: HITI) (TSXV:
HITI) (FRA: 2LYA), a retail-focused cannabis corporation enhanced
by the manufacturing and distribution of consumption accessories,
is pleased to announce that the Company's senior secured lender has
converted substantially all of its debt into common shares of the
Company (the "Common Shares"), removing one of the remaining
obstacles for High Tide to finalize a credit facility with a
Canadian bank on standard commercial terms. Over the last six
months, High Tide has eliminated over $40
million of debt.
"With our recently closed $23.6
million equity offering, and total debt currently sitting at
$31.6 million – of which only
$3.8 million is due in the next
twelve months – High Tide's financial strength has never been
stronger. Having reported Adjusted EBITDA of $4.6 million for our latest quarter ended
January 31, 2021, which did not
include the contribution of two acquisitions we have subsequently
closed, we feel we are a prime candidate to obtain traditional
non-dilutive bank debt, and we are in late-stage discussions with a
leading bank on that front," said Raj Grover, President and Chief
Executive Officer of High Tide.
In addition, High Tide is pleased to announce that it has been
added to the AdvisorShares Pure Cannabis ETF (NYSE: YOLO)
("YOLO"). Listed on New York Stock Exchange's Archipelago
Exchange, YOLO was the first actively managed ETF with a dedicated
cannabis investment mandate domiciled in the United States along side AdvisorShares'
Pure US Cannabis ETF (NYSE: MSOS), a sister fund to YOLO, which
focuses on US multi-state operators (MSO) and other domestic
companies in the cannabis industry.
"Our inclusion in the AdvisorShares' ETF once again demonstrates
the confidence that institutional investors have in High Tide's
business plan and growth strategy, particularly with respect to
the United States. Coupled with
our track record of profitability and sustainable growth, this
inclusion allows us to further broaden our visibility with North
American investors. Getting included in this ETF within our first
week of being listed on Nasdaq validates our belief that
institutions and ETFs will continue to take positions in High Tide.
We continue to relentlessly pursue value-add opportunities for
shareholders. In just the first eight days of June, we announced
the opening of three stores, listed our shares on Nasdaq, were
added to another high-profile ETF, and eliminated our senior debt,"
added Mr. Grover.
About High Tide Inc.
High Tide is a retail-focused cannabis company enhanced by the
manufacturing and distribution of consumption accessories. The
Company is the most profitable Canadian retailer of recreational
cannabis as measured by Adjusted EBITDA,1
with 87 current locations spanning Ontario, Alberta, Manitoba and Saskatchewan. High Tide's retail segment
features the Canna Cabana, KushBar, Meta Cannabis Co., Meta
Cannabis Supply Co. and NewLeaf Cannabis banners, with additional
locations under development across the country. High Tide has been
serving consumers for over a decade through its numerous
consumption accessory businesses including e-commerce platforms
Grasscity.com, Smokecartel.com and CBDcity.com, and its wholesale
distribution division under Valiant Distribution, including the
licensed entertainment product manufacturer Famous Brandz. High
Tide's strategy as a parent company is to extend and strengthen its
integrated value chain, while providing a complete customer
experience and maximizing shareholder value. Key industry investors
in High Tide include Tilray Inc. (TSX:TLRY) (NYSE:TLRY) and Aurora
Cannabis Inc. (TSX:ACB). (NYSE:ACB).
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information in this news release constitutes
forward-looking statements under applicable securities laws. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by
terms such as "may", "should", "anticipate", "expect", "potential",
"believe", "intend" or the negative of these terms and similar
expressions. Forward-looking statements regarding High Tide and its
business include, but are not limited to, statements with respect
to: High Tide being added to other ETFs in the future, and the
Company's ability to increase shareholder liquidity and appeal to
international and institutional investors. The forward-looking
events and circumstances discussed in this press release may not
occur by certain specified dates or at all and could differ
materially as a result of known and unknown risk factors and
uncertainties affecting High Tide, including risks relating to the
listing of High Tide's securities in the United States, a shutdown of the United
States government, the Company not expanding globally, which
could result in the Company not having a diversified business
platform for growth, the Company not being well positioned to
pursue additional opportunities for growth, or such opportunities
no longer being available to High Tide, risks associated with the
geographic markets in which High Tide operates, risks associated
with fluctuations in exchange rates (including, without limitation,
fluctuations in currencies), risks associated with the cannabis
industry and the regulation thereof, the failure to comply with
applicable laws, the failure to obtain regulatory approvals,
economic factors, market conditions, the equity and debt markets
generally, risks associated with growth and competition, general
economic and stock market conditions, risks and uncertainties
detailed from time to time in High Tide's filings with the TSXV and
Canadian Securities Administrators, the COVID-19 pandemic
nationally and globally and the response of governments to the
COVID-19 pandemic in respect of the operation of retail stores and
other risks and many other factors beyond the control of High Tide.
Readers are cautioned that the foregoing list is not
exhaustive. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those
anticipated.
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1
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Adjusted EBITDA is a
non-IFRS financial measure.
|
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and reflect our
expectations as of the date hereof, and thus are subject to change
thereafter. High Tide disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable securities laws.
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SOURCE High Tide Inc.