High Tide to Buy Northern Helm; Secures Credit Approval for C$40 Million of Senior Secured Credit Facilities
High Tide (HITI.V, HITI) agreed to buy 100% of the equity interest of J. Supply Holdings Inc., operating as Northern Helm, resulting in the company's acquisition of four of the six retail cannabis stores currently operated by Northern Helm in Ontario for $7.74 million, it said on Monday.These acquisitions will bring High Tide's total store count to 228 Canna Cabana locations across Canada and 103 in the province of Ontario, it said. The consideration for the 100% of equity interests acquired will be about $3.2 million in assumed debt with a 2% interest rate, with 40% of the remaining amount paid in cash, and the remaining 60% paid in common shares of High Tide on closing on the basis, subject to some terms.In another press release, the company also said it secured credit approval for a loan agreement with Bank of Montreal (BMO.TO, BMO) in respect of new senior secured credit facilities in the principal amount of C$40 million. Closing of the new credit facilities remains subject to some conditions.The new credit facilities will replace its existing senior credit facility, upon closing.U.S.-listed shares of High Tide were last seen up 0.4% at US$2.32 in pre-market trading.