02:31 PM EDT, 08/02/2024 (MT Newswires) -- High Tide Inc. ( HITI ) on Friday announced the initial closing of its previously disclosed subordinated debt facility of $1,000 principal subordinate secured debentures of the company for aggregate gross proceeds of $15 million at a price of $900 per debenture.

A statement noted the debentures will mature on July 31, 2029, and bear interest at a fixed rate of 12% per annum on drawn amounts, payable quarterly.

Friday's statement said the debentures will be drawn in two tranches: $10 million principal amount which has been drawn on the initial closing; and $5 million in November 2024.

The company issued an aggregate of 230,760 common shares at a price of $3.47 per common shares to the lenders.

Net proceeds of the Facility will be used for debt repayment, ongoing development of the company's business model and general working capital purposes.

HITI was down $0.13 or 5.1% at $2.40.

Price: 2.39, Change: -0.14, Percent Change: -5.53