In the midst of a series of financial and operational shifts, Phoenix-based TILT Holdings Inc. (NEO: TILT) (OTCQX: TLLTF) announced a change in its leadership.
The firm’s CFO, Dana Arvidson, has left the company, effective immediately, with Brad Hoch, the current accounting chief and former CFO, stepping in as Interim CFO.
“Dana Arvidson played a key role in refinancing our legacy debt earlier this year. We wish him well,” TILT’s Interim CEO, Tim Conder, said in a Tuesday statement. “We are fortunate to have our former CFO, Brad Hoch, who we expect can seamlessly fill this role on an interim basis.”
The leadership change at TILT follows a period of financial reorganization for the company, known in the nascent cannabis industry as a one-stop-shop for supply chain needs, offering everything from cultivation and manufacturing to retail-ready products and branding solutions.
TILT recently said that it undertook measures in the first quarter to manage its debt, including securing approvals to bolster its credit line with improved terms and a longer maturity period. Such actions “alleviated its near-term debt maturity,” the company said after releasing its first earnings report of the year.
The firm also recently secured up to $4.5 million through senior secured promissory notes, also known as a bridge loan, to address short-term payment challenges with a large supplier.
Despite the efforts to manage debt, TILT reported a loss of $4.9 million for the first quarter. Still, it marked a significant improvement from the final three months of 2022, when the company reported a loss of $73 million.
Conder, who assumed the role in April following the resignation of Gary Santo, last week pledged to optimize operations, instill frugality as a core value, and hold the team to higher levels of accountability in a bid to make the company profitable.
And despite the recent losses and leadership shuffles, the board took a focused position after Santo left.
“We will continue to prioritize serving our brand partners and customers with a renewed focus on generating free cash flow through operational excellence and purposeful capital allocation,” said board chair, John Barravecchia.
As of March 31, TILT had $5.2 million in the bank, up from $3.5 million at the close of 2022, and was carrying $48.9 million in debts, down from $59.7 million on New Year’s Eve.
“In addition to the leadership change, we are reducing our corporate overhead by decreasing headcount, including additional members of the senior leadership team, and rationalizing expenses,” Conder said on Tuesday.
“While this process is never easy, these actions are necessary as we work to realign our company to create an agile team focused on profitability and operational excellence for all of our stakeholders.”