High Tide Inc. announced that it has entered into binding subscription agreements with arm's length institutional credit providers for a subordinated secured debentures financing for gross proceeds of CAD 15,000,000 on June 13, 2024. The company will complete an offering of CAD 1,000 principal subordinate secured debentures of the Company for aggregate gross proceeds of CAD 15,000,000 at a price of CAD 900 per Debenture, representing a 10% original issue discount. The debentures will mature in 60 months from the date of issuance.

The debentures bear interest at a fixed rate of 12% per annum on drawn amounts, payable quarterly. The funds will be drawn in two tranches of CAD 10,000,000 at closing and CAD 5,000,000 in November 2024. The transaction is expected to close on or prior to June 30, 2024.

The transaction is subject to certain conditions precedent and the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSXV. The transaction is subject to a hold period of four months plus one day from the date of issuance.