High Tide Inc. secured a $30 million convertible debt from a Cronos Group Inc. subsidiary to fund acquisitions and growth, aiming to expand its cannabis store network in Canada and internationally. The loan has a 4% annual interest rate, a 5-year term, and can be converted into High Tide common shares at $4.20 per share. Cronos also received a warrant to purchase 3,836,317 common shares at $3.91 each. High Tide is a leading cannabis retailer, recognized for its growth and integration.

High Tide Closes $30 Million Loan from Cronos Group

Jul 17, 2025

Mg Magazine Newswire

MG Magazine

*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.