High Tide Updates Shareholder Rights to Protect Cannabis Licenses

The board of directors approved a Temporary Shareholder Rights Plan alongside an amended version of its previous agreement, both formalized on June 26. These measures specifically expand the definition of an "Acquiring Person" to prevent ownership stakes that could trigger non-compliance with provincial cannabis licensing rules. Specifically, the amendments address ownership caps and control limitations set by the Ontario Cannabis Licence Act and British Columbia’s Cannabis Licensing Regulation.

While the company intends to seek shareholder ratification for the Amended and Restated Shareholder Rights Plan, it will not put the temporary version to a vote at the upcoming August 11 meeting. If shareholders approve the proposal, the updated plan will remain in effect for three years. The TSXV has already granted conditional acceptance for these changes, which the company claims are designed to treat all shareholders fairly while maintaining the integrity of its retail operations across Canada.