Canadian cannabis retailer and e-commerce platform provider High Tide has finalized a credit line of 15 million Canadian dollars ($10.9 million) from institutional creditors.
The debt financing, according to a news release, was issued at $900 per debenture, a type of secured loan similar to a bond that can be used to raise business capital.
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The debentures, drawn from two tranches, will mature on July 31, 2029, and carry a fixed-interest rate of 12% per year on drawn amounts, payable quarterly.
The first $10 million tranche was accessed upon closing, and a $5 million tranche will be drawn in November, according to the company.
In connection with closing the transaction, High Tide issued 230,760 common shares to lenders priced at $3.47 per share.
The company said it plans to use the proceeds for debt repayment, business development and general working-capital purposes.
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