Looking for additional capital to fuel the company’s rapid pace of expansion, High Tide Inc. (CSE: HITI; OTCQB: HITIF; Frankfurt: 2LY) issued $2 million in convertible debentures last month through a private placement.

The fundraising deal included an option for a second tranche that could go as high as $5 million with additional debentures issued.

That second tranche has now closed today, seeing gross proceeds of $2,115,000, or slightly less than half the maximum amount allowed.

The net of that amount will go towards buying additional inventory and keeping operations moving forward as High Tide continues to staff and open new stores.

The company has been on an expansion spree over the last year, opening 27 separate Canna Cabana branded locations, with the latest launching in Airdrie last week.

Those debentures are due to mature in 24 months, with 10% interest annually, and include the option to be converted into common shares at $0.25 a share. The 10% interest rate was due up front and paid in shares, with High Tide issuing just over 1 million shares to pay the interest on the first tranche in full.

With the second tranche now closed, the company additionally issued 8.3 million share purchase warrants. Those warrants can be converted into $0.50 shares in two years, and will have a four-month hold period after issuance.

This is the latest in a string of dilutive fundraising attempts over the last year, with High Tide closing the final tranche of an oversubscribed convertible debenture offering of $11.5 million back in June.

Subsequent to the latest store opening, the company additionally issued 4.5 million warrants at $0.30 a share as payment for capital market advisory services.

High Tide will need the money through this latest tranche to keep the lights on at its growing roster of stores, as the company reported $2.17 million in revenue in the latest quarterly earnings report.

Contrasting that amount was a loss of $10 million as expenses for opening and staffing new stores are consistently exceeding incoming revenue, resulting in a loss per share of $0.06.

HITI is currently trading at $0.19 today, down from $0.48 a share back in April as the company experienced the same massive downward trend as the rest of the licensed cannabis industry.

High Tide currently operates 30 stores across Canada, with plans in place for a total of 42 locations between the Canna Cabana and KushBar brands.