High Tide Executes a Term Sheet for $40MM of Credit Facilities with a Big 5 Canadian Chartered Bank As its New Senior Lender

Rhea-AI Summary

High Tide (Nasdaq: HITI) signed a term sheet on May 5, 2026 for $40 million of new senior secured credit facilities with a Big 5 Canadian chartered bank, replacing its connectFirst facility. The facilities comprise a $25 million revolver and a $15 million delayed‑draw term loan with closing expected within 60 days.

Terms include interest of Prime+2% to Prime+3% depending on leverage and covenants: Senior Funded Debt/EBITDA <2.0x, Total Funded Debt/EBITDA <3.0x, and Fixed Charge Coverage >1.25x.

Positive

• $40 million committed senior credit facilities
• $25 million revolver providing ~ $19 million available at close
• $15 million delayed‑draw term loan to refinance second‑lien debentures
• Interest rate range of Prime+2% to Prime+3% (lower‑cost capital)
• Facility with a Big 5 Canadian bank as new senior lender

Negative

• Financial covenants required: Senior Funded Debt/EBITDA < 2.0x
• Total Funded Debt/EBITDA covenant of < 3.0x
• Minimum Fixed Charge Coverage Ratio requirement of > 1.25x

News Market Reaction – HITI

-2.07%

-2.07% Session close to close

In the May 5 session, HITI declined 2.07%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a $40 million senior secured credit package from a Big 5 Canadian bank, in...

Analysis

This announcement details a $40 million senior secured credit package from a Big 5 Canadian bank, including a $25 million revolver and a $15 million delayed draw term loan to refinance higher-cost obligations. It follows record quarterly revenue of $178.3M and continued expansion of the Canna Cabana and Remexian platforms. Investors may watch compliance with leverage and fixed-charge coverage covenants and how efficiently this financing supports growth versus adding balance-sheet rigidity.

Key Figures

New credit facilities: $40 million Revolver facility: $25 million Revolver availability: $19 million +5 more

8 metrics

New credit facilities $40 million Total principal of new senior secured credit facilities

Revolver facility $25 million Committed revolver to refinance connectFirst loan and fund growth

Revolver availability $19 million Approximate undrawn capacity after refinancing ~$6M connectFirst balance

Term loan $15 million Committed delayed draw term loan to refinance second-lien debentures

Term amortization 7 years Amortization period for the delayed draw term loan

Interest rate spread Prime + 2% to Prime + 3% Rate range depending on future leverage

Leverage covenant <2.0x Required Senior Funded Debt / EBITDA ratio

Fixed charge coverage >1.25x Minimum Fixed Charge Coverage Ratio covenant

Historical Context

5 past events · Latest: Apr 23 (Negative)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 23	Trading review announcement	Negative	-7.0%	Company launched probe into potential manipulation of its common shares.
Apr 20	Store opening	Positive	+1.6%	New Canna Cabana store in Caledonia expanded Canadian retail footprint.
Apr 13	Conference participation	Neutral	+0.0%	Executives scheduled to present at multiple cannabis and investor conferences.
Apr 01	Strategic initiative	Positive	-0.9%	NuLeaf Naturals pursued participation in a U.S. Medicare CBD pilot program.
Mar 17	Earnings results	Positive	-1.6%	Record Q1 FY2026 revenue, higher gross profit and positive free cash flow.

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

Pattern Detected

Recent news shows mixed price reactions: store openings and neutral items track logically, while strong earnings and strategic initiatives have sometimes seen negative next-day moves.

Recent Company History

Over the last few months, High Tide has reported record Q1 FY2026 results with revenue of $178.3M and positive free cash flow, expanded its Canna Cabana footprint to 221 Canadian stores, and pursued Medicare CBD opportunities via NuLeaf. It also disclosed concerns about unusual trading in its shares and initiated a forensic review. Against this backdrop, the new $40M credit facilities with a Big 5 Canadian bank fit an ongoing theme of scaling retail and medical platforms while optimizing capital structure.

Key Terms

senior secured credit facilities, revolver facility, delayed draw term loan, second-lien debentures, +4 more

8 terms

senior secured credit facilities financial

"in respect of new senior secured credit facilities (the "New Credit Facilities")"

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.

revolver facility financial

"A $25 million committed revolver facility to be used to refinance"

A revolver facility is a bank line of credit a company can draw from, repay, and draw again as needed—similar to a business credit card for short-term cash needs. It matters to investors because it supplies flexible liquidity to cover operating costs, seasonal swings, or quick opportunities, and the size, cost and usage of the revolver signal a company’s short-term financial health and risk of running out of cash.

delayed draw term loan financial

"A $15 million committed delayed draw term loan to be used"

A delayed draw term loan is a financing agreement that lets a borrower take one or more lump-sum loans from a lender at agreed future dates within a set time window instead of receiving all funds up front. It matters to investors because it changes when and how much debt a company will carry, affecting cash flexibility, interest costs and risk exposure—think of it like an approved credit line you only tap when you need cash for a project.

second-lien debentures financial

"to refinance the Company's existing $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

"Financial covenants associated with The Facilities include maintaining:"

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.

fixed charge coverage ratio financial

"and a Minimum Fixed Charge Coverage Ratio > 1.25x."

A fixed charge coverage ratio measures how well a company's operating income can cover its fixed, recurring obligations like interest payments and lease costs. Think of it as a safety margin — the higher the number, the more comfortably a business can pay steady bills from its normal earnings, which matters to investors because it signals financial stability, lower default risk, and greater ability to withstand revenue dips.

ebitda financial

"Senior Funded Debt / EBITDA <2.0x; Total Funded Debt / EBITDA < 3.0x;"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

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forward-looking statements regulatory

"CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSThis press release may contain"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

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

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CALGARY, AB, May 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, today announced that it has signed a term sheet (the "Term Sheet") with one of Canada's Big 5 chartered banks (the "Lender") in respect of new senior secured credit facilities (the "New Credit Facilities") in the principal amount of $40 million. Upon closing, the New Credit Facilities will replace the Company's existing senior credit facility with connectFirst Credit Union. The name of the Lender will be disclosed at closing, which is expected within 60 days subject to satisfaction of customary conditions precedent.

"Having a Big 5 Canadian bank step in as our senior lender marks a clear inflection point for High Tide. This is not just access to capital — it is institutional validation of the scale, consistency, and quality of the business we've built. Our model is delivering where others have struggled, and that discipline is now translating into materially lower-cost capital," said Raj Grover, Founder and Chief Executive Officer of High Tide.

"In a capital-constrained industry, access to low-cost, scalable financing is a structural advantage — and one we intend to fully leverage. This facility strengthens our ability to pursue accretive growth across our retail network, scale our German platform through Remexian, and expand into other federally legal markets, all while maintaining the disciplined financial approach that continues to set High Tide apart," added Mr. Grover.

Transaction Details

The Term Sheet is for two committed facilities:

• A $25 million committed revolver facility to be used to refinance the Company's loan with connectFirst at closing, general working capital / corporate requirements, permitted acquisitions and permitted investments.  The facility is to have a three-year maturity.  The balance at connectFirst is expected to be a little over $6 million at closing, resulting in almost $19 million of available room on the revolver facility.
• A $15 million committed delayed draw term loan to be used to refinance the Company's existing $15 million second-lien debentures.  The Company can elect to draw on this facility at its option, and it will be repaid over a seven-year amortization period.
• The applicable interest rate will depend on the Company's leverage in the future, but range between Prime + 2% and Prime + 3%.
• Financial covenants associated with The Facilities include maintaining: Senior Funded Debt / EBITDA <2.0x; Total Funded Debt / EBITDA < 3.0x; and a Minimum Fixed Charge Coverage Ratio > 1.25x.  The Company has tested its internal model with these covenants and expects to be comfortably in compliance with all financial covenants.

Signing the Term Sheet represented the conclusion of a multi-month process which included obtaining terms from multiple Tier 1 lenders. Beshay Soliman George (BSG) LLP assisted the Company during this process.

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 221 domestic locations 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 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
Carter Brownlee
Communications and Public Affairs Advisor
High Tide Inc.
cbrownlee@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 press release may contain "forward-looking information" and "forward-looking statements within the meaning of applicable securities legislation. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. The forward-looking statements herein include, but are not limited to, statements regarding: that the New Credit Facilities will close on the terms and within the timelines set out in this press release, the use of proceeds from the New Credit Facilities being utilized as outlined herein, the ability of the Company to comply with the financial covenants, the anticipated effects of the New Credit Facilities on the business and operations of High Tide, and the ability of the Company to enter new markets. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Although the Company believes that the expectations reflected in these statements are reasonable, such statements are based on expectations, factors, and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including but not limited to the 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-executes-a-term-sheet-for-40mm-of-credit-facilities-with-a-big-5-canadian-chartered-bank-as-its-new-senior-lender-302762099.html

SOURCE High Tide Inc.

FAQ

What credit facilities did High Tide (HITI) announce on May 5, 2026?

High Tide announced a $40 million term sheet comprising a $25 million revolver and a $15 million delayed‑draw term loan. According to the company, the facilities will replace the existing connectFirst facility and close within 60 days subject to customary conditions.

How will High Tide (HITI) use the $25 million revolver from the new credit facilities?

The $25 million revolver will refinance High Tide's connectFirst loan and provide working capital and permitted acquisitions. According to the company, roughly $19 million of revolver capacity will be available after refinancing the expected ~$6 million connectFirst balance at closing.

What are the interest rate and repayment terms for High Tide's new HITI facilities?

Interest will range from Prime+2% to Prime+3% depending on leverage, the company said. The revolver has a three‑year maturity; the $15 million delayed draw is repayable over a seven‑year amortization period when drawn.

What financial covenants does the new High Tide (HITI) credit agreement require?

The credit facilities require Senior Funded Debt/EBITDA < 2.0x, Total Funded Debt/EBITDA < 3.0x, and a Minimum Fixed Charge Coverage Ratio > 1.25x. According to the company, internal modeling shows expected comfortable compliance.