High Tide Secures $30 Million Convertible Debt for Growth Initiatives

High Tide Secures $30 Million in Convertible Debt from Cronos Group

High Tide Inc. has announced a significant financial move with the closure of a loan agreement for $30 million in convertible debt from a wholly-owned subsidiary of Cronos Group Inc., as detailed in a press release dated July 16, 2025. This capital injection is set to bolster High Tide's objectives to expand its cannabis retail footprint across Canada, aiming to exceed 300 store locations.

Strengthening the Cannabis Retail Landscape

High Tide, which operates as a high-impact, retail-forward enterprise, specializes in delivering value at every level of the cannabis industry. CEO Raj Grover emphasized the importance of this investment, referring to it as a validation of High Tide's robust business model. The financial backing from a prominent licensed producer not only enhances High Tide's operational capabilities but also reinforces its position as a significant player in the evolving cannabis sector.

"Their support speaks volumes about the value High Tide brings to the legal cannabis ecosystem," Grover stated. He highlighted that this investment is intended solely for growth, aiming to strengthen the company’s infrastructure and operational network.

Loan Terms and Structure

The $30 million Junior Secured Loan is secured by a third priority lien on specific assets of High Tide. It features an attractive interest rate of 4% per annum and a five-year term. High Tide retains the flexibility to repay the loan without incurring penalties, allowing them to manage their finances proactively. Additionally, Cronos Group has the option to convert the loan into common shares at a set price, enabling them to participate in the growth of High Tide’s equity.

Based on the agreement, Cronos received purchase warrants granting them the right to acquire additional common shares, further positioning them to benefit from High Tide's potential growth. These warrants are set at a 25% premium to the stock price, marking a calculated investment strategy by Cronos.

High Tide's Expanding Operations

High Tide has established itself as a leader in the cannabis retail sector through its various brands, which include Canna Cabana and several leading e-commerce platforms for cannabis consumption accessories. The company also has diversified operations extending into the wholesale distribution and CBD sectors, emphasizing its comprehensive approach towards cannabis consumer engagement.

Awarded for its growth trajectory, High Tide has consistently been recognized among Canada’s top growing companies, illustrating its successful navigation of the cannabis market. With this latest funding, High Tide is well-positioned to accelerate its expansion plans both domestically and internationally.

Commitment to a Thriving Cannabis Ecosystem

Mike Gorenstein, Chairman and CEO of Cronos Group, stressed the mutual benefits of collaborating with retail partners, underscoring the importance of fostering a competitive retail environment within the industry. He described it as beneficial for both producers and consumers alike, advocating for a balanced and well-regulated cannabis market.

In conclusion, this $30 million convertible debt represents not just a financial transaction but a strategic alliance aimed at reshaping the landscape of cannabis retail in Canada. As High Tide looks towards achieving its ambitious goals, the partnership with Cronos will likely play a pivotal role in ensuring sustained growth and innovation in the sector.

About High Tide Inc.

High Tide is recognized as the second largest cannabis retailer globally, built on a foundation of community-driven values. The company is renowned for its robust cannabis retail operations and innovative approaches to consumer engagement. For more insights into their offerings and future strategies, you can visit their website at www.hightideinc.com.

About Cronos Group Inc.

Cronos Group is an internationally recognized cannabis company committed to advancing product development and consumer innovation in the cannabinoid market. Through a diverse portfolio, the company is dedicated to enhancing the consumer experience in the cannabis industry. More information is available on their website at thecronosgroup.com.