High Tide (TSXV: HITI) is gearing up to dilute shareholders. The firm this morning announced that it will be the latest cannabis firm conducting an at the market offering to assist in funding its operations.
The company intends to raise gross proceeds of up to $40 million under the offering, with shares under the offering to be sold directly on both the Nasdaq Capital Market as well as the TSX Venture Exchange. Shares are to be sold at prevailing market prices, meaning it is currently unknown just how many shares will ultimately be sold.
Proceeds from the offering are to be used to “fund two specific strategic initiatives” which are currently being developed, as well as for growth and development of existing operations, for future acquisitions, and working capital and general corporate purposes. The two strategic initiatives were not elaborated on.
The program is expected to run until the earlier of all shares under the ATM being sold, the program is terminated by the firm, and the prospectus being withdrawn.
High Tide last traded at $7.03 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. 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.
