10:29 AM EDT, 06/13/2024 (MT Newswires) -- High Tide (HITI) said Thursday that it will raise 15 million Canadian dollars ($10.9 million) in subordinated debt financing under binding subscription agreements with arm's length institutional credit providers.

Under the financing, the company will complete an offering of CA$1,000 principal subordinate secured debentures at $900 per debenture, representing a 10% original issue discount. The five-year debentures will have a fixed rate of 12% per year on drawn amounts, which is payable quarterly. The financing is expected to close June 30.

The company said it will use the proceeds to repay the remaining balance of its outstanding convertible debentures, with the remainder going toward development of the company's business model and general working capital purposes.

Price: 2.66, Change: +0.02, Percent Change: +0.95