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.
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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.
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.
