CALGARY, Oct. 3, 2018 /CNW/ – High Tide Ventures Inc. (“High Tide” or the “Company”) announced that yesterday it closed the second tranche of a brokered private placement offering (the “Offering”), pursuant to which the Company issued in aggregate 13,307,418 special warrants at a price of $1.38 per special warrant for gross proceeds of $18,364,237. The Offering was upsized by over 83% from an original amount of $10,000,000 due to strong demand from over 135 participating investors. Canaccord Genuity Corp. was the sole lead manager and sole lead bookrunner and the syndicate also included Mackie Research Capital Corporation and Laurentian Bank Securities Inc. The selling group consisted of GMP Securities and Raymond James Ltd.
“The results of the Offering exceeded our expectations and its proceeds will not only enable us to begin executing on a significant number of growth initiatives across western Canada, but the upsized amount will now also empower us to focus more resources on the Ontario market,” said Raj Grover, President & Chief Executive Officer of the Company. “We greatly appreciate the efforts of our syndicate members and assisting parties and we will strive to deploy our investors’ capital to generate strong returns from the downstream cannabis industry,” added Mr. Grover. High Tide is currently in possession of 22 development permits for retail cannabis stores in Alberta and expects to open the maximum permitted number of 37 stores in the province. The Company is also awaiting its wholesale cannabis permit for Saskatchewan, expects to establish the maximum allowed amount of eight retail cannabis stores in British Columbia, and has dispatched a real estate team to secure a large number of leases for retail cannabis locations in Ontario.
Each special warrant is exercisable into one unit of the Company, which is comprised of one common share and one-half of one common share purchase warrant of High Tide. Each whole warrant will be exercisable into a common share of High Tide at a price of $2.07 per warrant, for a period of 24 months from the date on which the common shares are listed and posted on the Canadian Securities Exchange (“CSE”). The exercise of the common share purchase warrants can be accelerated by the Company if its common shares trade at a daily volume-weighted average price greater than $3.45 per share on the CSE for a period of ten consecutive trading days.
In preparation for becoming a publicly-traded issuer, the Company has reserved “HITI” as its ticker symbol on the CSE and expects to submit its preliminary prospectus to the Alberta Securities Commission (“ASC”) in the near future. However, there can be no guarantee that the CSE will accept the listing of the common shares or that the ASC will issue a receipt for the preliminary prospectus.
About High Tide Ventures Inc.
High Tide is a privately-held, Alberta-based, retail-focused cannabis corporation. It is among the most vertically-integrated companies in the Canadian cannabis market, with portfolio subsidiaries including RGR Canada Inc., Smoker’s Corner Ltd., Famous Brandz Inc., Canna Cabana Inc. and the majority of KushBar Inc. High Tide’s strategy as a parent company is to extend and strengthen its retail-focused integrated value chain, while providing a complete customer experience and maximizing shareholder value.
Representing the core of High Tide’s business, RGR Canada Inc. is a high-quality and innovative designer, manufacturer and distributor of cannabis accessories. Founded in 2009 and approved by the Canadian Franchise Association, Smoker’s Corner Ltd. is Canada’s largest counter-culture chain with 19 current locations. Famous Brandz Inc. is a dominant manufacturer of licensed lifestyle accessories, through partnerships with celebrities and entertainment companies including Snoop Dogg and Paramount Pictures. Famous Brandz’ products are sold to wholesalers and retailers around the world. Upon the expected deregulation of cannabis for adult use across Canada on October 17, 2018, Canna Cabana Inc. is positioned to become a sizeable retail brand through a modern concept with a sophisticated yet playful customer experience, while KushBar Inc. is a retail concept that will also be focused on the valued Canadian cannabis consumer.
For more information about High Tide Ventures Inc., visit www.hightideventures.com
Certain statements in this news release are forward-looking information or forward-looking statements. Such information and statements, referred to herein as “forward-looking statements” are made as of the date of this news release or as of the date of the effective date of information described in this news release, as applicable. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (generally, forward-looking statements can be identified by use of words such as “outlook”, “expects”, “intend”, “forecasts”, “anticipates”, “plans”, “projects”, “estimates”, “envisages, “assumes”, “needs”, “strategy”, “goals”, “objectives”, or variations thereof, or stating that certain actions, events or results “may”, “can”, “could”, “would”, “might”, or “will” be taken, occur or be achieved, or the negative of any of these terms or similar expressions, and other similar terminology) are not statements of historical fact and may be forward-looking statements.
Such forward-looking statements are based on assumptions that may prove to be incorrect, including but not limited to the ability of High Tide to execute on its business plan and that High Tide will receive one or multiple licenses from Alberta Gaming, Liquor & Cannabis, British Columbia’s Liquor Distribution Branch or the Saskatchewan Liquor and Gaming Authority permitting it to carry on its Canna Cabana Inc. and KushBar Inc. businesses. High Tide considers these assumptions to be reasonable in the circumstances. However, there can be no assurance that any one or more of the government, industry, market, operational or financial targets as set out herein will be achieved. Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements, or industry results, to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements.
The forward‐looking statements contained herein are current as of the date of this news release. Except as required by law, High Tide does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forward-looking statement, nor does it intend, or assume any obligation, to update or revise these forward-looking statements to reflect new events or circumstances. Any and all forward-looking statements included in this news release are expressly qualified by this cautionary statement, and except as otherwise indicated, are made as of the date of this news release.
SOURCE High Tide Ventures Inc.
For further information: Nick Kuzyk, Chief Strategy Officer & SVP Capital Markets at High Tide Ventures Inc.; Tel: (403) 265-4207; Email: [email protected]; Web: www.hightideventures.com.