HIGH TIDE CLOSES $40 MILLION SENIOR SECURED CREDIT FACILITIES

Rhea-AI Summary

High Tide (Nasdaq: HITI; TSXV: HITI) closed new senior secured credit facilities with Bank of Montreal totaling C$40 million. The package includes a C$25 million committed revolving credit facility with a three-year maturity and a C$15 million committed delayed-draw term loan intended to refinance existing C$15 million second-lien debentures.

According to High Tide, part of the revolver was used to repay and terminate its prior C$6.0 million senior credit facility with ConnectFirst Credit Union, with remaining capacity available for working capital, corporate purposes, permitted acquisitions and investments. The new facilities are secured by substantially all assets of the company and certain subsidiaries and include customary financial and other covenants.

Positive

• C$40 million total senior secured facilities closed with Bank of Montreal
• C$25 million committed revolving facility with three-year maturity
• C$6.0 million ConnectFirst loan repaid and facility terminated
• C$15 million delayed-draw term loan to refinance second-lien debentures

Negative

• Facilities secured by substantially all assets of the company and certain subsidiaries
• New credit facilities subject to customary financial and other covenants

Market Context

High Tide’s recent record included a 0% 24-hour reaction to a store-opening announcement, while Q2 e...

Analysis

High Tide’s recent record included a 0% 24-hour reaction to a store-opening announcement, while Q2 earnings produced 12%; that range adds context to the financing close. Asset security and covenants are key terms to monitor.

Key Figures

New credit facilities: C$40 million Revolving facility: C$25 million Revolving maturity: Three-year maturity +5 more

8 metrics

New credit facilities C$40 million Aggregate principal amount

Revolving facility C$25 million Committed facility with three-year maturity

Revolving maturity Three-year maturity Committed revolving credit facility

ConnectFirst repayment C$6.0 million Outstanding loan repaid using part of the revolving facility

Delayed-draw term loan C$15 million Committed delayed-draw term loan

Second-lien refinancing C$15 million Existing second-lien debentures to be refinanced

Canadian retail locations 229 domestic and 1 international location Canna Cabana retail network

Canadian market share 12% Company’s stated Canadian cannabis retail market share

Historical Context

5 past events · Latest: Jul 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 23	Store opening	Positive	+0.0%	New Ottawa location expanded Canna Cabana’s Canadian retail footprint to 229 stores.
Jul 15	Shareholder engagement	Neutral	-1.8%	CEO hosted the company’s fifth Reddit AMA addressing strategy, operations, and outlook.
Jul 06	Rights plan	Neutral	-1.3%	Company adopted temporary and amended shareholder rights plans subject to approvals.
Jun 17	Brand partnerships	Positive	-6.0%	German subsidiary showcased exclusive Canadian medical cannabis distribution partnerships at Mary Jane Berlin.
Jun 15	Q2 earnings	Positive	+12.0%	Record Q2 revenue and adjusted EBITDA accompanied approval of C$40 million facilities.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

High Tide’s recent news reactions were mixed: Q2 earnings aligned positively, while partnership, governance, shareholder-engagement, and store-expansion announcements diverged from their stated direction.

Key Terms

senior secured credit facilities, committed revolving credit facility, delayed-draw term loan, second-lien debentures, +1 more

5 terms

senior secured credit facilities financial

"closed its previously announced senior secured credit facilities with Bank of Montreal"

Senior secured credit facilities are loans or lines of credit that a company borrows where lenders have first claim on specified assets if the company cannot pay back its debts. Think of it like a mortgage on a house: the bank holds the deed (collateral) and gets paid before other creditors, which usually makes the loan cheaper for the borrower. Investors watch these arrangements because they affect a company’s cost of borrowing, financial risk, and how available assets are prioritized if the company faces financial trouble.

committed revolving credit facility financial

"A C$25 million committed revolving credit facility with a three-year maturity"

A committed revolving credit facility is a formal loan agreement in which lenders legally promise a company access to a set borrowing limit for a fixed period, and the company can draw, repay and redraw funds up to that limit like a corporate credit card. It matters to investors because it provides predictable short-term liquidity and financial flexibility, affects a company’s debt profile and interest expense, and may include covenants that influence future financial decisions.

delayed-draw term loan financial

"A C$15 million committed delayed-draw term loan intended to refinance"

A delayed-draw term loan is a loan arrangement where a lender agrees in advance to provide a fixed amount of money that the borrower can take out at one or more later dates, rather than receiving the cash all at once. It matters to investors because it gives a company a guaranteed source of funding when needed, affecting its short-term cash security, future interest costs and overall debt load—similar to having a reserved line of credit for planned expenses or deals.

second-lien debentures financial

"refinance the Company's existing C$15 million second-lien debentures"

Second-lien debentures are bonds backed by a company’s assets but rank behind first-lien lenders when claims are paid, so they have a second claim on collateral. Think of them like a second mortgage: if the borrower defaults, first-lien holders are paid first and second-lien holders get what’s left, which makes these bonds riskier but typically pay higher interest. Investors watch them for a balance of higher return and greater recovery risk in distress.

financial covenants financial

"subject to customary financial and other covenants"

Financial covenants are rules written into loan or bond agreements that require a company to keep certain financial measures within agreed limits—examples include minimum cash, maximum debt levels, or minimum profit margins. They act like guardrails for lenders: breaking a covenant can force renegotiation, trigger penalties or default, and quickly affect a company’s available cash and stock value, so investors watch them as early warning signs of financial stress.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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New facilities materially increase financial flexibility and lower the Company's cost of capital

CALGARY, AB, Aug. 5, 2026 /PRNewswire/ -- High Tide Inc. ("High Tide" or the "Company") (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced today that it has closed its previously announced senior secured credit facilities with Bank of Montreal ("BMO") in the aggregate principal amount of C$40 million (the "New Credit Facilities").

The closing follows the Company's June 15, 2026, announcement that it had secured credit approval from BMO. In connection with the closing, High Tide has repaid and terminated its existing senior credit facility with ConnectFirst Credit Union.

Transaction Details

The New Credit Facilities consist of:

• A C$25 million committed revolving credit facility with a three-year maturity. A portion of this facility was used to repay the Company's outstanding loan with ConnectFirst Credit Union, of C$6.0 million. The remaining capacity is available for general working capital and corporate purposes, permitted acquisitions and permitted investments.
• A C$15 million committed delayed-draw term loan intended to refinance the Company's existing C$15 million second-lien debentures.

The New Credit Facilities are secured by substantially all of the assets of the Company and certain of its subsidiaries and are subject to customary financial and other covenants. 

ABOUT HIGH TIDE

High Tide, Inc. is the leading community-grown, retail-forward cannabis enterprise engineered to unleash the full value of the world's most powerful plant. Its wholly owned subsidiary, Canna Cabana, is the second-largest cannabis retail brand globally. High Tide (HITI) is uniquely-built around the cannabis consumer, with wholly-diversified and fully-integrated operations across all components of cannabis, including:

Retail: Canna Cabana^™ is the largest cannabis retail chain in Canada, with 229 domestic and 1 international location. The Company's Canadian bricks-and-mortar operations span British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario, holding a growing 12% share of the market. In 2021, Canna Cabana became the first cannabis discount club retailer in the world. The Company also owns and operates multiple global e-commerce platforms offering accessories and hemp-derived CBD products. In 2025, the Company became the first North American cannabis operator to launch a bricks-and-mortar presence in Germany.

Medical Cannabis Distribution: Remexian Pharma GmbH is a leading German pharmaceutical company, with a 14% share of the German medical cannabis market, built for the purpose of importation and wholesale of medical cannabis products at affordable prices. Among all German medical cannabis procurers, Remexian has one of the most diverse reaches across the globe and is licensed to import from 19 countries including Canada.

High Tide consistently moves ahead of the currents, having been named one of Canada's Top Growing Companies by the Globe and Mail's Report on Business in 2025 for the fifth consecutive year and was recognized as a top 50 company by the TSX Venture Exchange (the "TSXV") in 2022, 2024 and 2025. High Tide was also ranked number one in the retail category on the Financial Times list of Americas' Fastest Growing Companies for 2023. To discover the full impact of High Tide, visit www.hightideinc.com. For investment performance, don't miss the High Tide profile pages on SEDAR+ and EDGAR.

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.

CONTACT INFORMATION

Media Inquiries
Omar Khan
Chief Communications and Public Affairs Officer
High Tide Inc.
omar@hightideinc.com
403-770-3080

Investor Inquiries
Vahan Ajamian
Capital Markets Advisor
High Tide Inc.
vahan@hightideinc.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements are often, but not always, identified by words such as "expect", "intend", "plan", "believe", "anticipate", "estimate", "may", "will", "could", "should" and similar expressions. Forward-looking statements in this news release include, without limitation, statements relating to: the anticipated use of funds, the satisfaction of customary conditions required for advancement of funds, the Company's ability to maintain and drawdown on the New Credit Facilities, the Company's business objectives and milestones and the anticipated timing of, and costs in connection with, the execution or achievement of such objectives and milestones, and the repayment of the existing debentures.

Forward-looking statements are based on management's current expectations and assumptions as of the date of this news release. Forward-looking statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially, including, without limitation: delays or inability to obtain required regulatory approvals or authorizations; changes in competitive, market or consumer conditions; operational risks associated with opening and operating new stores; and the other risk factors discussed under the heading "Non-Exhaustive List of Risk Factors" in Schedule A to our current annual information form, and elsewhere in this press release, as such factors may be further updated from time to time in our periodic filings, available at www.sedarplus.ca and www.sec.gov, which factors are incorporated herein by reference. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement and reflect the Company's expectations as of the date hereof and are subject to change thereafter. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, estimates or opinions, future events or results, or otherwise, or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

View original content to download multimedia:https://www.prnewswire.com/news-releases/high-tide-closes-40-million-senior-secured-credit-facilities-302843160.html

SOURCE High Tide Inc.

FAQ

What did High Tide (HITI) announce about its new C$40 million credit facilities on August 5, 2026?

High Tide announced closing senior secured credit facilities with Bank of Montreal totaling C$40 million. According to High Tide, the package comprises a C$25 million revolving facility and a C$15 million delayed-draw term loan to enhance liquidity and refinance existing obligations.

What are the terms of High Tide’s C$25 million revolving credit facility with BMO?

High Tide’s revolving facility is a committed C$25 million line with a three-year maturity. According to High Tide, part repaid a C$6.0 million ConnectFirst loan, while remaining capacity can fund working capital, corporate purposes, permitted acquisitions and permitted investments.

How will High Tide (HITI) use its new C$15 million delayed-draw term loan?

High Tide’s C$15 million delayed-draw term loan is intended to refinance its existing C$15 million second-lien debentures. According to High Tide, this forms part of the new senior secured credit facilities agreed with Bank of Montreal.

What happened to High Tide’s previous senior credit facility with ConnectFirst Credit Union?

High Tide repaid its outstanding C$6.0 million loan with ConnectFirst Credit Union using part of the new revolver. According to High Tide, the existing senior credit facility with ConnectFirst was then terminated upon closing the Bank of Montreal facilities.

What collateral and covenants secure High Tide’s new C$40 million credit facilities?

The new facilities are secured by substantially all assets of High Tide and certain subsidiaries. According to High Tide, the Bank of Montreal credit arrangements are also subject to customary financial and other covenants typical for senior secured corporate lending.

How do the new Bank of Montreal credit facilities affect High Tide’s financial flexibility?

The company states the new C$40 million facilities materially increase financial flexibility and lower its cost of capital. According to High Tide, remaining revolver capacity supports working capital, corporate purposes, and permitted acquisitions and investments, replacing the prior ConnectFirst facility.

What is High Tide (HITI) and how large is its Canna Cabana retail network?

High Tide is a retail-forward cannabis enterprise focused on consumer-centric operations. According to High Tide, its Canna Cabana chain is Canada’s largest cannabis retailer with 229 domestic and 1 international store, holding about a 12% share of the Canadian market.