Bank of Montreal Approves $40M Facility for High Tide Expansion
BMO•BMO•BMO•BMO•Bank of Montreal approved a $40 million secured credit facility to High Tide Inc, funding expansion of 228 stores and working capital needs. The loan boosts potential net interest income but raises BMO’s exposure to cannabis sector volatility and regulatory risks.
Bank of Montreal has approved a $40 million secured credit facility for High Tide Inc as the sole lender. The facility will fund expansion of High Tide’s 228 retail locations and bolster its working capital position.
This credit line is expected to contribute to BMO’s net interest income, diversifying its loan portfolio into the cannabis retail sector. The modest facility size limits overall portfolio concentration but marks increased exposure to a high-growth vertical.
Supporting High Tide’s expansion positions BMO to participate in the cannabis retail market, potentially unlocking cross-selling opportunities. However, regulatory shifts and High Tide’s cash flow volatility could pose elevated credit risk under this facility.
