High Tide secures $30 million convertible debt from Cronos Group

High Tide Inc. (NASDAQ: HITI) completed a loan agreement with a subsidiary of Cronos Group Inc. (NASDAQ: CRON) for $30 million in convertible debt, the cannabis retailer announced.

The convertible loan carries a 4% annual interest rate and is secured by a third priority lien on certain High Tide assets. Cronos may convert the loan into High Tide common shares at $4.20 per share, subject to High Tide's agreement. The loan has a five-year term and can be repaid without penalty at High Tide's discretion.

Cronos also received warrants exercisable for up to 3,836,317 High Tide common shares at $3.91 per share, representing a 25% premium to the 30-day volume weighted average price on the TSX Venture Exchange prior to the announcement. The warrants are exercisable for five years.

High Tide plans to use the funds for acquisitions and organic growth as it seeks to expand beyond 300 retail locations in Canada. The company currently operates 202 Canna Cabana retail locations across six Canadian provinces.

"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, High Tide's founder and chief executive officer.

Mike Gorenstein, chairman, president and chief executive officer of Cronos, stated the investment was "driven by the belief that a competitive and equitable retail environment benefits the entire industry, including producers, retailers and adult consumers."

The TSX Venture Exchange has conditionally approved the listing of shares issuable upon conversion and warrant exercise, subject to fulfilling exchange requirements.

High Tide describes itself as the second-largest cannabis retailer globally by store count, according to ATB Capital Markets data from February 2025.

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