High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) (FSE: 2LYA) announced that its board of directors has approved the adoption of a Temporary Shareholder Rights Plan and an Amended and Restated Shareholder Rights Plan, dated June 26, 2026, with Olympia Trust Company as Rights Agent. The plans aim to maintain compliance with cannabis laws and preserve the company's licenses while ensuring fair treatment of shareholders during any take-over bid.
Purpose and Key Amendments
The Plans expand the definition of “Acquiring Person” to include cannabis retail operator license holders in Ontario who would cause non-compliance with Section 2 of General, O. Reg. 468/18 under the Cannabis Licence Act, 2018 (Ontario), and cannabis retail store licence holders in British Columbia who would cause non-compliance with requirements related to holding or controlling more than the prescribed number of licences under Sections 6 and 7 of Cannabis Licensing Regulation, BC Reg. 202/2018. Other amendments include correcting statutory references and updating defined terms.
Interim and Long-Term Measures
The Temporary Shareholder Rights Plan serves as an interim measure to address new retail operator restrictions pending shareholder approval of the Amended and Restated Shareholder Rights Plan. The company does not intend to seek shareholder ratification of the Temporary Shareholder Rights Plan at the August 11, 2026 meeting. If ratified, the Amended and Restated Shareholder Rights Plan will be the single, comprehensive plan for a three-year term.
According to High Tide, the Plans were not adopted in response to any known or anticipated take-over bid but to ensure compliance with applicable cannabis laws and allow the Board to negotiate value-enhancing alternatives. The Amended and Restated Shareholder Rights Plan amends the original plan adopted on April 10, 2025 and ratified by shareholders on May 30, 2025.
Regulatory Acceptance
The TSXV has accepted the Amended and Restated Shareholder Rights Plan, subject to shareholder ratification within six months of adoption. The Plans are similar to rights plans adopted by other Canadian companies but include specific provisions for cannabis law compliance.
