High Tide Sees Senior Secured Debt Converted To Equity
High Tide Inc. (TSXV: HITI) (NASDAQ: HITI), this morning announced that the company’s senior secured lender has elected to convert “substantially” all of its debt held with the company. The firm however did not specifically identify exactly how much debt was converted to equity, or at what price.
The company is reportedly looking to eliminate its outstanding debts as it looks to transition to commercial-term credit facilities from Canadian banks, rather than lending from high-interest lenders. The current debt in question is believed to be related to funds provided by Windsor Private Capital, which had roughly $4.0 million outstanding on a credit facility that bore interest at a rate of 10%.
That debt notably had a pre-split conversion price of $0.17, which amounts to roughly $2.55 per share on a post-split basis.
The company stated in the release that their total debt is currently sitting at $31.6 million, and adds that only $3.8 Million of that is due within the next 12 months. The company has reportedly been able to remove upwards of $40 million of company debt in the last 6 months.
High Tide also went on record to announce that they were recently included on the AdvisorShares Pure Cannabis ETF (NYSE: YOLO), which is listed on the NYSE’s Archipelago Exchange,
High Tide Inc. last traded on the TSX Venture at $9.93.
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.