High Tide Secures Credit Approval for C$40MM of Senior Secured Credit Facilities

Rhea-AI Summary

High Tide (Nasdaq/TSXV:HITI) obtained credit approval from Bank of Montreal for C$40 million in new senior secured credit facilities, which remain subject to customary closing conditions.

The package includes a C$25 million three-year revolving facility and a C$15 million delayed draw term loan to refinance existing debt.

Positive

• Credit approval for C$40 million in new senior secured facilities
• C$25 million three-year revolving facility to refinance connectFirst loan and fund growth
• Approximately C$19 million expected availability on the revolver at closing
• C$15 million delayed draw term loan to refinance second-lien debentures
• New facilities expected to replace existing senior credit facility
• Management indicates the facilities provide materially lower-cost capital

Negative

• Closing of the new credit facilities remains subject to customary conditions
• Access to funds depends on satisfying financial covenants and ongoing requirements
• Existing senior credit facility and connectFirst balance remain until closing occurs

News Market Reaction – HITI

-2.60% 2.1x vol

12 alerts

-2.60% Session close to close

+11.8% Peak in 12 hr

$197.77M Market Cap

2.1x Rel. Volume

In the Jun 15 session, HITI declined 2.60%, reflecting a moderate negative market reaction. Argus tracked a peak move of +11.8% during that session. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. Trading volume was elevated at 2.1x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement confirms credit approval for C$40 million of senior secured facilities, including ...

Analysis

This announcement confirms credit approval for C$40 million of senior secured facilities, including a $25 million revolver and a $15 million delayed draw term loan to refinance existing obligations. It supports High Tide’s stated plan to lower its cost of capital and simplify its debt stack. In context of recent store openings and international expansion, investors may focus on the final closing within about 30 days, debt service terms, and how this financing supports measured growth in Canada and Germany.

Key Figures

New credit facilities: C$40 million Revolving facility: $25 million Revolver headroom: Almost $19 million +5 more

8 metrics

New credit facilities C$40 million Total principal amount of senior secured credit facilities

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

Revolver headroom Almost $19 million Expected available room after refinancing connectFirst loan

connectFirst balance Slightly over $6 million Balance expected at closing to be refinanced

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

Second-lien debentures $15 million Existing debentures to be refinanced by term loan

Canna Cabana locations 228 domestic, 1 international Global bricks-and-mortar footprint of cannabis retail brand

German market share 14% Remexian share of German medical cannabis market

Historical Context

5 past events · Latest: Jun 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 10	Store openings Canada	Positive	-1.7%	Announced two new Canna Cabana stores in Welland and Calgary.
Jun 03	Earnings date set	Neutral	-2.9%	Scheduled Q2 2026 results release and investor webcast.
May 15	New Toronto store	Positive	+0.4%	Planned new Canna Cabana store opening in Toronto’s Rexdale area.
May 11	Insider share purchases	Positive	-1.2%	Insiders bought shares and highlighted a $40M credit facility term sheet.
May 05	Credit term sheet	Positive	-2.1%	Signed term sheet for $40M senior secured credit facilities.

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

Pattern Detected

Recent positive operational and financing updates have often coincided with modest negative price reactions, indicating a pattern of the stock selling off or underperforming on good news.

Recent Company History

Over the last two months, High Tide has focused on expanding its Canna Cabana retail footprint and strengthening its balance sheet. Store openings in Toronto, Welland, and Calgary lifted the network above 220 locations, while insiders bought shares and the company executed a $40 million senior credit term sheet. Despite generally constructive news, several announcements around growth and financing saw negative next-day moves, providing important context for how today’s credit approval update fits into a pattern of cautious market reactions.

Key Terms

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

8 terms

senior secured credit facilities financial

"secured credit approval for a loan agreement ... in respect of new senior secured 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.

revolving facility financial

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

A revolving facility is a bank loan that works like a company credit card: the borrower can draw funds, repay them, and draw again up to a set limit during the agreement period. It matters to investors because it provides short-term cash flexibility for operations, investments, or emergencies, and the cost or availability of that credit can affect a company’s liquidity, interest expenses, and financial stability.

delayed draw term loan financial

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

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

"used 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.

forward-looking information regulatory

"This press release may contain "forward-looking information" and "forward-looking statements""

Forward-looking information are predictions, plans, estimates or expectations about a company’s future performance, results or events, such as sales forecasts, project timelines, or anticipated costs. It matters to investors because these statements guide expectations but rely on assumptions and uncertain factors—like a weather forecast for a business—so investors should treat them as informed guesses rather than guarantees and consider the risks and possible changes behind the numbers.

forward-looking statements regulatory

"may contain "forward-looking information" and "forward-looking statements" within the meaning"

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.

financial covenants financial

"the ability of the Company to comply with the financial 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.

risk factors regulatory

"including but not limited to the risk factors discussed under the heading"

Risk factors are elements or conditions that could cause an investment's value to decrease or lead to potential losses. They are like warning signs or obstacles that can affect the success of an investment, making it uncertain or more unpredictable. Recognizing risk factors helps investors understand the possible challenges and make more informed decisions.

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

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CALGARY, AB, June 15, 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, further to its press release dated May 5, 2026, it has secured credit approval for a loan agreement (the "Loan Agreement") with Bank of Montreal ("BMO") in respect of new senior secured credit facilities in the principal amount of C$40 million (the "New Credit Facilities"). Closing of the New Credit Facilities remains subject to the satisfaction of customary closing conditions. Upon closing, the New Credit Facilities will replace the Company's existing senior credit facility.

"This is a defining moment for High Tide and speaks volumes about the scale, consistency, and quality of what we have built. Our new senior lender's facility translates directly into materially lower-cost capital as we enter our next phase of growth," said Raj Grover, Founder and Chief Executive Officer of High Tide.

TRANSACTION DETAILS

The Loan Agreement provides for two committed facilities, on terms consistent with those announced by the Company on May 5, 2026:

• A $25 million committed revolving facility with a three-year maturity, to be used to refinance the Company's loan with connectFirst at closing, for general working capital and corporate requirements, and for permitted acquisitions and permitted investments. The balance owing to connectFirst is expected to be slightly over $6 million at closing, resulting in almost $19 million of available room on the revolving facility.
• A $15 million committed delayed draw term loan to be used to refinance the Company's existing $15 million second-lien debentures.

Funds under the New Credit Facilities will become available to the Company, following the satisfaction of customary closing conditions, at which time the Company's existing senior credit facility will be repaid. The Company will provide a further update upon closing expected within approximately 30 days.

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 228 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 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: the closing of the New Credit Facilities and the satisfaction of customary closing conditions; the timing of closing; the repayment of the Company's existing senior credit facility; the use of proceeds from the New Credit Facilities being utilized as outlined herein; the expected balance owing to its existing senior lender at closing and the resulting availability under the revolving facility; 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 pursue accretive growth across its retail network, scale its German platform through Remexian, and expand into other federally legal 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.

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SOURCE High Tide Inc.

FAQ

What did High Tide (HITI) announce about its new C$40 million credit facilities on June 15, 2026?

High Tide announced credit approval from Bank of Montreal for C$40 million in senior secured credit facilities. According to the company, these facilities will replace its existing senior credit facility once customary closing conditions are satisfied and the transaction closes.

How are High Tide's new C$40 million senior secured credit facilities structured?

The package includes a C$25 million committed revolving facility and a C$15 million committed delayed draw term loan. According to High Tide, the revolver has a three-year maturity and both facilities are senior secured, subject to customary closing conditions before becoming available.

What will High Tide (HITI) use its new C$25 million revolving credit facility for?

High Tide plans to use the C$25 million revolver to refinance its connectFirst loan, for working capital, corporate purposes, and permitted acquisitions. According to the company, about C$6 million will repay connectFirst, leaving roughly C$19 million in available capacity.

How will the C$15 million term loan affect High Tide's existing debentures?

The C$15 million delayed draw term loan is intended to refinance High Tide's existing C$15 million second-lien debentures. According to the company, funds will be available after closing, aligning the new term loan size directly with the outstanding debenture principal.

When does High Tide expect to close its new C$40 million credit facilities with BMO?

High Tide expects to close the new facilities in approximately 30 days, subject to customary conditions. According to the company, funds will become available at closing, when the existing senior credit facility is repaid and the new agreement becomes effective.

What does the new BMO credit agreement mean for High Tide shareholders?

The facilities provide C$40 million of committed senior secured financing and additional liquidity for growth and refinancing. According to High Tide, the new senior lender’s facility is expected to result in materially lower-cost capital as the company advances its next phase of expansion.