High Tide Inc (TSXV: HITI) has managed to extend certain debt at the eleventh hour that was due to Windsor Private Capital. Originally issued at the start of this year under a $10.0 million credit facility, the debt was originally to be due tomorrow, on December 15, 2020.
The company however was able to renegotiate an extension to the maturity date to December 31, 2021, along with a subsequent one year extension to push it further to December 31, 2022. Also included with the amendment was a decrease in the interest rate of the loan from 11.5% to 10.0%, while certain warrant adjustments were made as well. The conversion price of $0.17 per share will remain the same.
At the time of announcement, Windsor was granted 58.8 million warrants to purchase common share of the company at a price of 150% of the conversion price of the debt, although only a portion had vested previously. Now, only 35.3 million will remain following the cancellation of the remaining portion, with the conversion price set at $0.255, and expiry adjusted to December 31, 2022.
$6.0 million currently remains outstanding under the credit facility, with $4.0 million being undrawn. The debt may be converted at any time, at Windsor Capital’s option.
The company has also finalized the extension of $4.25 million in convertible debentures, with the maturity dates of three separate debentures issued between December 12, 2018 and December 4, 2019 now having been extended to December 31, 2022.
High Tide Inc last traded at $0.205 on the TSX Venture.
Information for this briefing was found via Sedar and High Tide Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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