High Tide has signed a preliminary agreement, known as a term sheet, with one of Canada's five largest banks for new loans totalling $40 million. Once the deal is finalised, these new loans will replace the company's existing loan with connectFirst Credit Union. The name of the bank will be announced when the deal closes, which is expected to happen within 60 days, provided standard conditions are met.
"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.
The agreement covers two separate loan facilities. The first is a $25 million revolving credit facility, meaning the company can borrow, repay, and borrow again as needed. This will be used to pay off the existing connectFirst loan at closing, cover general business expenses, and fund approved acquisitions or investments. It has a three-year term. Since the outstanding balance with connectFirst is expected to be just over $6 million at closing, High Tide will have nearly $19 million in immediately available funds under this facility.
The second is a $15 million term loan that the company can choose to draw on at any time, which will be used to refinance its existing $15 million in second-lien debt. If drawn, this loan will be repaid over a seven-year period. The interest rate on both facilities will vary depending on the company's level of debt relative to its earnings, and will fall somewhere between the Bank of Canada Prime Rate plus 2% and Prime plus 3%.
The agreement also includes financial conditions that High Tide must maintain. These include keeping its senior debt below two times its earnings before interest, taxes, depreciation, and amortisation (EBITDA), keeping its total debt below three times EBITDA, and maintaining a minimum fixed charge coverage ratio, a measure of its ability to meet financial obligations, above 1.25 times. The company has reviewed these conditions against its own financial projections and expects to meet all of them comfortably.
For more information:
High Tide
[email protected]
hightideinc.com
