By Adriano Marchese
High Tide has adopted a temporary shareholder rights plan to address new retail operator restrictions as it awaits official shareholder approval of its permanent plan.
The TSX-Venture-listed cannabis company on Monday said that the new changes include a requirement that any acquiring party must have a cannabis retail operator license in Ontario and British Columbia to avoid any compliance issues.
The changes were made in order to remain in compliance with cannabis laws and to maintain its cannabis license. They are also meant to give all shareholders fair treatment when it comes to any offer to acquire shares in the company as it looks for alternatives to any unsolicited takeover bids, it said.
High Tide said that it will distribute a summary of the terms and conditions of the new rights plan in mid-August, when the officially amended and restated shareholder rights plan will be put to a shareholder vote. If ratified, the plan will be in effect for three years.
Write to Adriano Marchese at adriano.marchese@wsj.com