High Tide Secures $30M Investment from Cronos Group for Expansion and Growth

High Tide Inc. secured a $30 million investment from Cronos Group to fund future acquisitions and organic growth, aiming to expand its store network in Canada and internationally. This investment highlights High Tide's strong market position and its role in enhancing the legal cannabis ecosystem, potentially benefiting stakeholders by reducing illicit market share and supporting a competitive retail environment.

High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA), a leading cannabis retailer, has announced a significant milestone in its growth strategy. The company has secured a $30 million investment from Cronos Group Inc. (Nasdaq: CRON) (TSX: CRON) in the form of a convertible debt agreement. This investment will be utilized to fund future acquisitions and organic growth, with a particular focus on expanding High Tide's domestic store network beyond its current 300 locations in Canada.

The investment, which is secured by a third priority lien on certain of High Tide's assets and bears interest at 4% per annum, reflects Cronos' confidence in High Tide's strong business model. The loan agreement allows for the conversion of the debt into common shares at a price of $4.20 per share, with a 5-year term and no early repayment penalty. Additionally, Cronos received a common share purchase warrant, exercisable into up to 3,836,317 shares at an exercise price of $3.91 per share, representing a 25% premium to the 30-day volume weighted average price of High Tide shares on the TSX Venture Exchange.

High Tide's founder and CEO, Raj Grover, expressed his gratitude for the investment, stating, "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."

Cronos' CEO, Mike Gorenstein, echoed this sentiment, noting that the investment was driven by a belief in a competitive and equitable retail environment, which benefits the entire industry, including producers, retailers, and adult consumers.

The TSX Venture Exchange 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. High Tide continues to demonstrate its strong market position, having been named one of Canada’s Top Growing Companies by the Globe and Mail’s Report on Business in 2024 and recognized as a top 50 company by the TSX Venture Exchange in 2022, 2024, and 2025.

This investment highlights High Tide's commitment to growth and its role in enhancing the legal cannabis ecosystem, potentially benefiting stakeholders by reducing illicit market share and supporting a competitive retail environment.

References:

[1] https://hightideinc.com/high-tide-closes-on-30-million-convertible-debt-from-cronos-group-inc/
[2] https://www.morningstar.com/news/pr-newswire/20250716ca31814/high-tide-closes-on-30-million-convertible-debt-from-cronos-group-inc