CALGARY, AB, and TORONTO – High Tide Inc. 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.
High Tide intends to use the 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,” said Raj Grover, Founder and Chief Executive Officer of High Tide. “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,” said Mike Gorenstein, Chairman, President and Chief Executive Officer of Cronos. “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 Junior Secured Loan has a 5-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 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) on July 15, 2025, 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.
ABOUT HIGH TIDE
High Tide Inc. (HITI) is s leading community-grown, retail-forward cannabis enterprise and is the second-largest cannabis retailer globally by store count (as reported by ATB Capital Markets). High Tide (HITI) maintains wholly-diversified and fully-integrated operations across all components of cannabis. The company was named one of Canada’s Top Growing Companies by the Globe and Mail’s Report on Business in 2024 for the fourth consecutive year and was recognized as a top 50 company by the TSX Venture Exchange 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.
