High Tide (TSXV: HITI) has secured further funding for its operations. The company this morning indicated that it has entered into a revolving credit facility with ATB Financial, although concrete terms were not provided by the company.
The facility is reportedly for a figure of up to $25 million, with the initial facility pegged at $10 million while also having a $15 million accordion feature. The facility was reportedly acquired so as to enable the company to continue to focus on expansion and further acquisitions.
The facility itself is said to have a variety of lending instruments involved within it, including senior secured prime rate loans, LIBOR loans, letters of credits, and even a corporate MasterCard. Funds are expected to become available by the end of the month for the company, and can be drawn at High Tide’s discretion.
The debt, which the company emphasizes is non-dilutive, has a term of three years, with an “expected” interest rate of less than 6%, based on the firms debt to EBITDA ratio. The initial $10 million will be immediately available, while the according feature is said to be available subject to certain undisclosed conditions.
High Tide last traded at $6.97 on the TSX Venture.
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