Aurora Cannabis Inc. (NYSE: ACB) announced on December 13th that it has officially entered into a definitive agreement with High Tide Inc. to invest $10 million for 10,000 senior unsecured convertible debentures at $1,000 per debenture that is convertible to 13,333,333 common shares of High Tide at $0.75 per common share. The interest rate on the agreed upon debentures is 8.5% per annum.
In relation to the company’s investment, Terry Booth, Chief Executive Officer of Aurora Cannabis, said: “Through our investment, we gain exposure to two unique retail store concepts currently launching across Canada, as well as established cannabis culture brands and thousands of proprietary accessories. We look forward to working with the team at High Tide and supporting them as they execute on their aggressive growth strategy.”
High Tide intends to expand from its current 4 Canna Cabana brand retail cannabis stores in Alberta with more locations in Alberta, British Columbia, and Ontario. The company also owns 19 Smoker’s Corner locations and has two wholesale businesses: Famous Brandz and RGR Canada.