High Tide Obtains Commitment Letter from Connect First Credit Union for Non-Dilutive Funding

Calgary, Alberta–(BUSINESS WIRE)–High Tide Inc. (“High tide“or the”Company”) (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with physical assets and global e-commerce, today announced that it had entered into a letter-binding undertaking with Connect First Credit Union Ltd. (“connectFirst) for a $19 million credit facility with an initial term of 5 years (the “Credit facility”), at the connectFirst floor interest rate. The terms of the credit facility have been renegotiated with connectFirst to provide a larger facility readily available to High Tide, with a smaller total commitment from connectFirst initially – which High Tide expects will increase over time. Upon closing of the credit facility with connectFirst, the Company expects to use the proceeds to fund continued organic growth, general working capital requirements and potential future M&A activity.

“I am very pleased to provide this positive update today. Our business remains strong and we continue to gain traction as a leader in the Canadian cannabis retail market. Once in place, this ease will help us continue to propel our growth in an increasingly non-dilutive manner.Through our conversations with connectFirst, we expect this line to grow alongside our business growth as we continue to execute our delivered business plan. This will allow us to capitalize on attractive M&A and organic opportunities in North America and Europe,” said Raj Grover, President and CEO of High Tide. look forward to sharing our results and progress for our fiscal third quarter in mid-September, and we expect this facility to close around the same time. I remain as confident as ever in High Tide’s growth trajectory in Canada, the United States and emerging international markets,” added Mr. Grover.

“We have seen the execution of locally based High Tide over the past few years. Therefore, we are very excited that this new partnership between High Tide and connectFirst will help create a more prosperous Alberta – and beyond. Our senior debt offering will provide High Tide with the capital it needs to continue executing its impressive growth trajectory,” said Sourav Neogi, Relationship Manager, Corporate & Commercial Banking, Connect First Credit Union.


  • Term debt of C$19 million: Accessible on demand by High Tide, blended principal and interest payments.
  • Low interest rate: High Tide continues to benefit from the best interest rates in the industry which reflect the strength of its business.
  • Financial commitments: The credit facility will have a quarterly financial covenant tested of the debt service coverage ratio of at least 1.40:1, a monthly covenant of the current ratio of at least 1.25:1 and a quarterly covenant tested of the funded debt to EBITDA ratio of no more than 3:1 beginning with the quarter ending January 31, 2023. High Tide’s 12-month forecast projects it to be comfortably in compliance with all financial covenants .

The Company expects to close the credit facility during the first half of September 2022, subject to certain conditions precedent to disbursement and the satisfaction of other customary conditions precedent.


Connect First Credit Union Ltd., one of Canada’s largest and most successful credit unions, is a full-service financial institution with over $6 billion in assets under management. connectFirst employs 750 Albertans who provide a range of financial products and advice in more than 40 communities in central and southern Alberta. It serves over 125,000 members through a community-driven banking approach.


High Tide is a leading retail-focused cannabis company with global physical and e-commerce assets. The company is Canada’s largest recreational cannabis retailer by revenue, with 139 current locations in Ontario, Alberta, British Columbia, Manitoba and Saskatchewan. The company is also the first cannabis discount club retailer in North America, under the Canna Cabana banner, which is the largest cannabis retail brand in Canada with additional locations under development across the country. High Tide’s portfolio also includes retail kiosk and smart locker technology – Fastendr™. High Tide has been serving consumers for over a decade through its established e-commerce platforms including Grasscity.com, Smokecartel.com, Dailyhighclub.com and Dankstop.com and most recently in the hemp-derived CBD space through Nuleafnaturals.com, FABCBD.com, BlessedCBD.co.uk, BlessedCBD.de and Amazon UK, as well as its wholesale distribution division under Valiant Distribution, including licensed entertainment manufacturer Famous Brandz. High Tide was named in Report on Business magazine’s third annual ranking of Canada’s Best Growth Companies of 2021 and was named one of the 10 Best Performing Stocks in Diversified Industries in the 2022 TSX Venture 50™. High Tide’s Strategy as a parent company is to expand and strengthen its integrated value chain, while delivering a comprehensive customer experience and maximizing shareholder value.

For more information about High Tide Inc., please visit www.hightideinc.comits profile page on SEDAR at www.sedar.comand his profile page on EDGAR at www.sec.gov.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.


Certain information contained in this press release constitutes forward-looking statements under applicable securities laws. All statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by words such as “may”, “should”, “anticipate”, “expect”, “potential”, “believe”, “intend” or the negative form of these similar terms and expressions. Forward-looking statements contained in this press release include statements relating to: High Tide obtaining the Credit Facility on the terms and within the time periods set forth in this press release; the use of proceeds of the Credit Facility as set forth herein; the anticipated effects of the Credit Facility on High Tide’s business and operations; the Company using the credit facility to make future acquisitions; and High Tide’s plans to increase the credit facility.

The forward-looking information contained in this press release is based on certain assumptions and expected future events, namely: High Tide will close the credit facility (and have the ability to obtain all required approvals) on the terms and on the schedule by High Tide; the use of the proceeds of the Credit Facility will be used as set forth herein; the Company will use the credit facility to make future acquisitions; High Tide’s financial condition and development plans do not change as a result of unforeseen events; there will always be demand and market opportunity for High Tide’s product offerings; current and future economic conditions will not affect High Tide’s business and operations or High Tide’s ability to capitalize on anticipated business opportunities; and High Tide will expand and strengthen its integrated value chain, provide a comprehensive customer experience and maximize shareholder value. Although considered reasonable by High Tide’s management at the time of preparation, such statements may prove to be inaccurate and cause actual results to differ materially from those anticipated, and as such, undue reliance should not be placed on forward-looking statements.

These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including, but not to limit: the risks associated with the cannabis and cannabidiol industries in general; High Tide cannot close the credit facility and/or cannot use the credit facility on the terms and within the time limits provided; the inability of High Tide to obtain required approvals; High Tide’s inability to pursue further acquisitions in the future; and High Tide’s inability to expand and strengthen its integrated value chain, while delivering a complete customer experience and maximizing shareholder value.

The forward-looking statements, forward-looking financial information and other measures presented herein are not intended to be indications or projections for the periods referenced herein or for any future period, and in particular, past performance is not a indicator of future results and the results of High Tide in this press release may not be indicative and does not constitute an estimate, forecast or projection of the future results of High Tide. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and are therefore subject to change thereafter. High Tide disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Factors that could cause anticipated opportunities to differ materially from actual results include, but are not limited to, the matters noted above and elsewhere in High Tide’s public filings and material change reports, which are and will be available on SEDAR.

This press release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities law and may not be offered or sold to United States or to United States Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such recording is available.