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the earlier of all shares under the ATM being sold, the program is terminated by the firm, and the prospectus being withdrawn.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.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.