HITI · High Tide Inc.

High Tide Inc. has executed a term sheet for $40 million in new senior secured credit facilities with one of Canada's Big 5 chartered banks, marking a significant upgrade in its lending relationship from connectFirst Credit Union. The facilities comprise a $25 million committed revolver, which will refinance the existing connectFirst balance of just over $6 million at closing, unlocking nearly $19 million in additional liquidity with a three-year maturity, and a $15 million committed delayed draw term loan to refinance the company's $15 million second-lien debentures over a seven-year amortization. Interest rates are tied to leverage, ranging from Prime + 2% to Prime + 3%, reflecting materially lower-cost capital compared to prior arrangements. A key covenant limits Senior Funded Debt to 1.25x EBITDA, which management states the company comfortably meets based on internal modeling. CEO Raj Grover emphasized this as institutional validation of High Tide's business model, providing a structural advantage for accretive growth in its Canna Cabana retail network, Remexian German platform, and other legal markets while maintaining financial discipline. The multi-month process involved competitive terms from multiple Tier 1 lenders, advised by Beshay Soliman George (BSG) LLP. Closing is targeted within 60 days upon customary conditions, with the lender's name to be disclosed then. This refinancing enhances liquidity and flexibility in a capital-constrained cannabis sector.