High Tide Secures $30 Million in Convertible Debt from Cronos Group to Power Expansion and Growth

Canadian Cannabis Retailer Prepares for Aggressive Store Growth and Strategic Acquisitions with Major Industry Investment

CALGARY, Alberta, and TORONTO, Ontario — High Tide Inc., a leading Canadian cannabis retailer and vertically integrated business, announced today that it has closed a $30 million convertible debt financing agreement with a wholly owned subsidiary of Cronos Group Inc., a move that signals growing investor confidence in the company’s long-term strategy and market position.

This infusion of capital is structured as a junior secured loan and is intended to be used as growth capital fueling both organic expansion and future acquisitions, with a particular focus on increasing High Tide’s retail footprint in Canada beyond its current 300 locations.

Strategic Capital to Accelerate Retail Growth in Canada and Beyond

The deal is seen as a major win for High Tide, which has carved out a reputation as one of Canada’s most prominent cannabis retail brands. CEO Raj Grover emphasized that the investment is a clear endorsement of the company’s sustainable growth model and its role in strengthening the country’s regulated cannabis market.

The working capital will be deployed to support High Tide’s continued efforts to solidify market share, both by opening new retail locations and by potentially acquiring synergistic businesses that align with its retail-first approach. The company is especially focused on countering the illicit market and promoting a compliant, competitive retail landscape.

Cronos Group’s Investment Signals Broader Industry Alignment

From Cronos Group’s perspective, the investment represents a strategic alignment with retail operators that support a stable, regulated cannabis supply chain. The $30 million loan is also a demonstration of Cronos’ commitment to bolstering the economic health of retail partners in what remains a challenging post-legalization market.

With this agreement, Cronos becomes not just a financial backer but also a strategic ally that recognizes the value of robust, independent cannabis retailers in sustaining the long-term health of Canada’s legal marketplace.

Convertible Debt Structure Offers Flexibility and Long-Term Partnership Potential

The transaction is structured as a junior secured loan with a third priority lien on specific High Tide assets. The debt carries an annual interest rate of 4%, and includes a five-year maturity term. High Tide retains the option to repay the loan at any point during the term without penalty, providing it with crucial flexibility to manage capital efficiently as business needs evolve.

Additionally, Cronos has been granted the option to convert the debt into common shares of High Tide at a fixed price of $4.20 per share, excluding the original issuance discount. This conversion option aligns the interests of both parties, providing Cronos with upside potential if High Tide’s stock continues to perform.

The agreement also includes a common share purchase warrant allowing Cronos to purchase up to 3,836,317 common shares at an exercise price of $3.91—representing a 25% premium on High Tide’s 30-day volume weighted average trading price on the TSX Venture Exchange (TSXV) prior to the announcement. The warrants are exercisable over a five-year period.

The TSXV has conditionally approved the listing of all associated shares, subject to standard listing requirements being met.

A Vote of Confidence in Retail-Led Cannabis Models

This marks another major financial milestone for High Tide, which has gained traction for its innovation in cannabis retail, including its discount club model and aggressive use of e-commerce and loyalty marketing to capture consumer attention.

The company has previously attracted capital from other institutional investors and partners, and this newest infusion further positions it to lead the next wave of consolidation and growth within Canada’s maturing cannabis industry.

The financing also arrives as Canada’s cannabis market faces increasing pressure from competition, pricing challenges, and a still-resilient illicit market. In this context, scale, efficiency, and customer loyalty have become more vital than ever, and High Tide is betting that strategic investment in these areas will deliver sustained competitive advantages.

Outlook: Positioned for a Stronger Market Footprint

With the additional $30 million now in hand, High Tide is expected to ramp up its expansion efforts significantly. Analysts watching the cannabis sector will be observing how the company leverages this capital to acquire market share, enter underserved regions, and potentially expand internationally—especially as global legalization efforts continue to gain momentum.

Furthermore, the partnership with Cronos Group may open the door for future collaborations on product development, distribution, or vertical integration initiatives, especially as market dynamics shift in North America and abroad.

For now, High Tide’s leadership remains focused on what it does best: delivering consistent value to consumers, partners, and shareholders through a strong retail-led business model and strategic growth initiatives that are rooted in compliance, innovation, and industry leadership.

About High Tide Inc.

High Tide is a leading retail-focused cannabis company with bricks-and-mortar locations across Canada, a robust e-commerce portfolio, and an expanding international footprint. The company is known for its vertically integrated model, which includes manufacturing and distribution of cannabis accessories as well as retail and digital services.

About Cronos Group Inc.

Cronos Group is a global cannabinoid company dedicated to building disruptive intellectual property by advancing cannabis research, technology, and product development. With operations in multiple countries, Cronos is focused on delivering high-quality cannabinoid-based products to consumers worldwide.