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[PRESS RELEASE] – CALGARY, Alberta, and TORONTO, Ontario, July 16, 2025 – High Tide Inc., the high-impact, retail-forward enterprise built to deliver real-world value across every component of cannabis, announced that it has closed a loan agreement with a wholly owned subsidiary of Cronos Group Inc. to secure convertible debt with a principal amount of $30 million (the “junior secured loan”).
High Tide intends to use this working capital to fund future acquisitions and organic growth as it seeks to expand its business and grow its domestic store network beyond 300 locations in Canada.
“Given our strong and proven business model, it’s incredibly validating to receive a second vote of confidence in the form of an investment from a major licensed producer in recent months,” High Tide founder and CEO Raj Grover said. “Their support speaks volumes about the value High Tide brings to the legal cannabis ecosystem, not only as a growth-focused retailer but as a key industry player that’s helping improve the operating environment for licensed producers, reduce illicit market share, and reinforce Canada’s regulated framework overall. With this investment, which will serve entirely as growth capital, we’re poised to accelerate our expansion both in Canada and internationally.”
“Our investment was driven by the belief that a competitive and equitable retail environment benefits the entire industry, including producers, retailers and adult consumers,” Cronos Chairman, President and CEO Mike Gorenstein said. “We remain fully committed to working with and supporting all our retail partners.”
Transaction Details
The junior secured loan is secured by a third priority lien on certain of High Tide’s assets and bears interest at 4% per annum. Pursuant to the terms of the loan agreement, Cronos may, with the agreement of High Tide, from time to time, convert the junior secured loan, excluding the amounts attributed to the original issuance discount, into common shares in the capital of High Tide at a price of $4.20 per common share (the common shares issued from such conversions, the “conversion shares”). The junior secured loan has a five-year term and may be repaid, in whole or in part, at any time, at High Tide’s option with no penalty.
Additionally, Cronos received a common share purchase warrant. The warrant is exercisable into up to 3,836,317 common shares (the “warrant shares”) at an exercise price of $3.91 per warrant share, representing a 25% premium to the 30-day volume weighted average price of High Tide shares on the TSX Venture Exchange (TSXV) ending on the trading day prior to the date of this news release, for a period of five years, at Cronos’ option.
The TSXV has conditionally approved the listing of the conversion shares and warrant shares, subject to the fulfillment of the requirements of the TSXV’s conditional approval.
