TILT Holdings Archives - Green Market Report

Debra BorchardtMay 16, 2022
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TILT Holdings Inc.  (NEO: TILT) (OTCQX: TLLTF) reported its financial and operating results for the three months ended March 31, 2022. Tilt’s revenue was $42.4 million compared to $46.8 million in the year-ago period. However, revenue fell dramatically from the fourth quarter which was $54 million. Tilt said the decrease was primarily driven by lower sales volume in its inhalation business related to the timing of purchases by certain large customers, as well as price compression for the company’s bulk and house-branded wholesale cannabis products.

The net losses for the quarter were trimmed to $9 million from the fourth quarter’s net loss of $29 million.

“As discussed on our March 30th earnings call, during the first quarter we experienced the effects of inflationary pressure on consumers exacerbated by legacy product mix in our key plant-touching markets, coupled with both customer ordering and regulatory timing delays that affected Jupiter’s performance,” said Gary Santo, CEO of TILT. “Exiting the quarter, the broader market appears to be gaining momentum, with our inhalation business experiencing the second strongest sales order month in its history in April. Furthermore, opportunistic improvements made to our cultivation and processing operations over the past two quarters would appear to be well-timed to these changing market conditions, positioning the Company for a strong second half of 2022.”

Sales/Leaseback

Santo added, “Today we are also announcing two sale leaseback transactions totaling $55 million, the first of which closed earlier today with the second scheduled to close before quarter-end. Delivering on our promise to seek non-dilutive sources of capital, we plan to use the net proceeds to pay down outstanding debt by up to 50%, representing the first two legs of a stool designed to improve TILT’s overall capital structure.”

In addition to the earnings release, TILT’s subsidiary, Commonwealth Alternative Care, Inc. (“CAC”), completed the previously announced acquisition of its facility located in Taunton, MA. Concurrently, CAC closed on the sale of the Taunton Facility to Innovative Industrial Properties, Inc. (IIP) (NYSE: IIPR). The purchase price for the property in the Massachusetts Sale was $40 million. The all-cash net proceeds of the Massachusetts Transaction of approximately $27 million will be used by TILT to pay down its outstanding corporate debt. IIP entered into a long-term, triple-net lease agreement for the Taunton Facility with CAC.

Tilt also announced that its subsidiary White Haven RE, LLC, sold the cultivation and production facility in White Haven, PA for $15 million cash to IIP.  TILT’s subsidiary, Standard Farms, LLC, will also execute a long-term, triple-net lease agreement with substantially the same terms as the lease pertaining to the Taunton Facility.

Looking Ahead

“Entering the second year of our B2B strategy, demand from potential brand partners remains strong, with the addition of Timeless Refinery and Toast during the quarter, along with our recently announced partnership with Black Buddha Cannabis, another exceptional brand driven by social impact. With initial revenue attributable to brand partnerships already representing nearly one-third of our wholesale sales, as we continue to activate new partnerships and expand the product offerings for those brands previously launched, we believe the path we have chosen is the right one as we seek to become the partner of choice for independent brands seeking to scale.”

TILT said it continues to expect 2022 annual revenue to range between $255 – $265 million, and adjusted EBITDA to range between $27 – $32 million. At the midpoint, this reflects approximately 28% revenue growth and approximately 31% adjusted EBITDA growth over 2021.


StaffMarch 30, 2022
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TILT Holdings Inc. (NEO: TILT) (OTCQX: TLLTF) reported its financial and operating results for the fourth quarter and year ending December 31, 2021. Tilt said that revenue increased approximately 28% to $54.1 million versus $42.3 million for the same period in 2020. The increase was only slightly better than the third quarter’s revenue of $53.3 million. The net loss for the quarter was $30.8 million, a significant improvement over 2020’s fourth quarter net loss of $92 million.

Full Year Results

Revenue increased approximately 28% to $202.7 million in 2021 versus $158.4 million for the year ended 2020. The company said the increase was primarily attributable to an approximate 33% increase in inhalation and accessory revenue, as well as an approximate 11% increase in cannabis revenue. The net losses were much improved for 2021 coming in at $46 million versus 2020’s net loss of $105 million.

“2021 was a strong year for Tilt—growing organically, building our team, and implementing the new B2B strategy we unveiled in late 2020. As this brand strategy continues to unfold in 2022, we expect our wholesale mix to drastically change, highlighting the strength of our partnerships with proven brands and the emphasis we place on building reciprocal relationships,” said Gary Santo, CEO of Tilt. “Over the course of 2021, we doubled our canopy in Massachusetts and added two adult-use dispensaries, entered into our third market with the acquisition of Standard Farms Ohio, and our fourth market with the launch of a strategic partnership with the Shinnecock Indian Nation of New York, and we activated four new marquee brand partnerships. This is in addition to maintaining our position as the category leader in cannabis inhalation and accessory sales. These achievements underscore the success of our new strategy and the relentless effort from our growing team.”

2022 Financial Guidance

Tilt expects 2022 annual revenue to range between $255 – $265 million, and adjusted EBITDA to range between $27 – $32 million. At the midpoint, this reflects approximately 28% revenue growth and approximately 31% adjusted EBITDA growth over 2021.


Debra BorchardtNovember 15, 2021
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TILT Holdings Inc. (NEO:TILT) (OTCQX: TLLTF) reported its financial results for the three months ending September 30, 2021 with revenue increasing 37% to $53.4 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 19% to $11.2 million and inhalation and accessory revenue increased 42% to $42.1 million. The net loss increased sequentially to $7.1 million from the second quarter’s $3.9 million and was higher than last year’s net loss of $4.6 million.

“TILT’s B2B strategy originated from our belief that the rising supply of wholesale cannabis in multiple markets across the U.S. would require a differentiated approach, shifting away from bulk flower sales towards branded packaged goods,” said Gary Santo, CEO of TILT. “When we launched our strategy at the start of the year, we envisioned that marketplace transition would take 12 to 18 months as new cultivation came online. In the third quarter, we saw that timeline accelerate along with macro-economic pressure impacting consumers.”

“Competition for shelf space is accelerating. Compressing margins are forcing MSOs and SSOs to focus on their own branded products while still maintaining a portion of that shelf space for a curated portfolio of high-demand third-party products. This is the space where TILT plays, and although we are still early in scaling our operations to meet brand partner demand, our top-line performance during the quarter demonstrates that by establishing partnerships with the right brands at the right price points, TILT can support retailers while expanding the reach of independent brands.”

The total operating expenses were $16.3 million versus $14.5 million. At September 30, 2021, cash and cash equivalents were $6.7 million compared to $7.4 million at December 31, 2020.

Tilt reiterated its 2021 revenue guidance of $205-$210 million, expecting to come in at the lower end of the range primarily as a result of unexpected delays in obtaining new product approvals in Pennsylvania. “This, coupled with higher freight costs associated with the Company’s inhalation and accessories business and expanding cultivation in Massachusetts, has resulted in the Company revising its 2021 adjusted EBITDA outlook to range between $24-$26 million, representing a 42%-54% increase compared to 2020.”
“While we expect ongoing improvements in our efficiency and margin profile in our cannabis business as we ramp cultivation, Jupiter continues to lead the way in cannabis inhalation devices with record revenue during the quarter. Our supply chain management expertise has been on full display throughout the year, and while there has been a near-term impact to our margins due to higher freight costs, our ability to strategically deploy working capital to ensure availability of product has benefitted our customers while attracting the business of our competitors’ customers.”

Debra BorchardtJune 21, 2021
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The Massachusetts Cannabis Control Commission fined both TILT Holdings Inc. (CSE: TILT) (OTCQX: TLLTF) and Ayr Strategies (OTC: AYRWF) last week for over $200,000 each as both companies try to resolve issues each blamed on previous management. The settlement also allows each company to move forward with plans in the state.

Tilt Holdings

Tilt Holdings agreed to the settlement resolving concerns of the CCC, which cleared a path for the provisional licensure for the retail sale of adult-use and medical cannabis in Massachusetts. Tilt CEO Gary Santo said in a statement, “With today’s decision, TILT has fully resolved the dispute regarding certain agreements entered into by the original management team of TILT with other license applicants. In February, TILT terminated all remaining contractual relationships between the company and prospective applicants. At yesterday’s meeting of the CCC, the commissioners ratified a stipulated agreement resolving the related investigation pursuant to which TILT has agreed to make a $275,000 payment to the CCC Marijuana Regulation Fund.” TILT said it is now positioned to complete the licensing process and increase its retail footprint in Massachusetts with the opening of two additional dispensaries in Cambridge and Brockton following final inspection and approval by the Commission. Both facilities are fully built out.

“We worked diligently with the Cannabis Control Commission to resolve the investigation that has stalled our remaining state licenses for the past two years,” said Santo. “We appreciate the time, effort and professionalism afforded to TILT by the CCC staff and are thrilled to have come to an amicable resolution with the Commission. Since joining the TILT team, I have made it a point to reinforce our focus on building a culture of compliance and have taken steps to build out our compliance team across the organization, making key hires that reflect both depth of industry knowledge and integrity in processes. The conclusion of this investigation marks the turning of a page for TILT and we look forward to serving many new patients and customers in our communities later this year.”

Ayr Strategies

The commission also fined Sira Naturals, which is owned by Ayr Strategies, $295,000 for allowing an unlicensed intra-company delivery vendor it had received permission to work with to deliver products between other cannabis firms. Ayr noted in a statement that the Commission addressed a settlement between Sira and the Commission, “related to wholesale transportation activities during the challenging reopening of the Massachusetts adult-use market in 2020 following the COVID-19 shutdown.” While no violation has been admitted, the company thanked the Commission for its efforts and dialogue over the intervening period and appreciates the important clarifications that the settlement provides.

Despite the fine and settlement, Massachusetts Cannabis Control Commission granted Ayr’s local partner Sira Naturals a provisional license for the sale of adult-use cannabis at its Boylston Street location in Boston. The provisional license allows for the continued development and construction of the dispensary and marks a significant milestone toward the opening of Ayr’s first adult-use store in the Greater Boston area.

The planned 4,500 ft² store is located next to the Apple Store and across from the Prudential Center, well-positioned for pedestrian traffic and easy access to the city’s public transit. The neighborhood is a popular residential community, as well as one of New England’s preeminent destinations for shopping and dining. Jonathan Sandelman, CEO of Ayr, said, “Despite being home to 60% of the state’s population, the Greater Boston Area has been underserved in access to adult-use cannabis. As cultivators of wellness and creators of wonder, we are excited to help change that and bring more of our high-quality cannabis offerings to the City of Boston.”

 

 


Debra BorchardtMay 25, 2021
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TILT Holdings Inc. CSE: TILT ) ( OTCQX: TLLTF ) reported its financial and operating results for the three months ended March 31, 2021. Revenue increased 15% to $46.8 million compared to $40.6 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 45% to $11.7 million and inhalation and accessory revenue increased 8% to $35.1 million. Net losses dropped sequentially from $45 million in the fourth quarter to $1.5 million in the first quarter.

“Our first-quarter results reflect another period of strong execution as we continue to build an integrated B2B cannabis company that partners with leading MSOs, LPs and cannabis brands,” said Gary Santo, President of TILT. “The results of that execution and our team’s hard work show up where it matters—in the numbers. We generated double-digit revenue growth and reduced cash operating costs on an absolute basis, all from the same asset base. We are more efficient operators today and we are just getting started. Over the coming quarters, we expect to benefit from our recently added cultivation capacity and secure additional brand partners as we expand our portfolio of products and services for our B2B partners and the industry at large.”

Tilt also reiterated its 2021 guidance for revenue between $205 – $210 million and adjusted EBITDA between $30 -$32 million. On March 31, 2021, cash and cash equivalents increased 21% to $9.0 million compared to $7.4 million on December 31, 2020.

Following the end of the quarter, Tilt was approved for an adult-use license in Brockton, Massachusetts; state license still pending. The company also announced a partnership with Airo Brands, a multi-state CPG company focused on proprietary inhalation products to launch products in Pennsylvania. Airo is one of Jupiter Research’s earliest customers and has been licensing exclusive Jupiter products since 2016 and collaborating on proprietary inhalation technologies. Through this broader partnership with TILT and its subsidiary Standard Farms PA, Airo will look to enter the Pennsylvania market by early summer.

Airo is a leading cannabis inhalation brand, available in more than 1,250 dispensaries across the U.S. and Puerto Rico. According to Headset, Airo is the largest inhalation brand in Nevada and has been the monthly sales leader over the past year. Airo is also one of the top-selling brands in several other markets, including Illinois, Colorado, Washington and Maryland. Jupiter will continue to provide its proprietary hardware for Airo’s AiroPro and AiroX devices, as well as AiroPod cartridges, while Standard Farms will produce and fill high-quality cannabis oil for Airo’s AiroPod cartridges to be sold at retailers across Pennsylvania, pending regulatory product approval.


Debra BorchardtApril 15, 2021
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TILT Holdings Inc.  (OTCQB: TLLTF)  reported its financial and operating results for the fourth quarter and year ending December 31. Revenue for the quarter increased 8.1% sequentially to $42.3 million from $39 million and increased 35.4% over last year’s $31 million for the same time period. Tilt beat analyst estimate for revenue and fell within its own forecast.

The company is continuing its efforts to zero its focus on plants and Jupiter vapes. Standard Farms posted record revenue for the quarter, including the two highest sales months in company history. The company also noted that its Jupiter sales in 2021 have also experienced record orders.

The net loss for the quarter was a whopping $92 million versus last year’s net loss of $32 million. The net losses stemmed from the discontinued operations due to the sale of Blackbird, which closed in November 2020.

For the full year 2020, revenue came in at $158 million versus 2019’s revenue of $146 million. The net loss for 2020 was $105 million, while the net loss for 2019 was $133 million.

“The primary focus in 2020 was for TILT to become profitable, putting in place the pieces necessary to achieve scale and engage in a steady and sustainable growth trajectory,” said Gary Santo, President of TILT. “We made a number of key decisions throughout the year that have already started to pay off, allowing the Company to have a strong finish to 2020, producing $16.9 million in Adjusted EBITDA and $16.7 million in cash from operating activities for the year. We look to carry that momentum into 2021 and are already off to a great start across all business units, supporting management’s previously announced full-year 2021 revenue guidance of $205 million to $210 million and Adjusted EBITDA guidance of $30 million to $32 million.”

The company said in a statement that it had positive adjusted EBITDA for the fourth consecutive quarter at $4.5 million. The cash and cash equivalents were $7.4 million, a $3.1 million increase from the previous quarter, and attributed this to robust cash flow from operations. The working capital was $57.4 million, an $8.5 million increase from the previous quarter.

“TILT underwent significant changes in 2020,” added Mark Scatterday, CEO of TILT. “Through the tireless efforts of our team, we were able to stabilize our foundation, solidify our strategy and focus on how best to deploy available resources towards our high-growth plant-touching assets, allowing TILT to provide a differentiated B2B platform capable of supporting independent brands, U.S. MSOs, and Canadian LPs. We expect 2021 to be an exciting year as we continue our transition from being a holding company possessing a disparate collection of subsidiaries to an integrated operating company capable of benefitting from economies of scale and cross-selling opportunities.”

Streamline Efforts Continue

In the company’s annual report, Tilt said it decided not to pursue the expansion and obtaining of license to cultivate and sell cannabis in its British Colombia location. “This is consistent with the Company’s long-term strategy to streamline operations and improve profitability. As a result, the Company derecognized $4,981 of SVT’s property, plant and equipment within the construction in progress category for the year ended December 31, 2020, based on management’s expectations of limited economic benefits from the continuing use of these assets.”

Tilt also stated that it derecognized unoccupied modular units at its Massachusetts facility in order to accelerate acceptance for its final occupancy permit with the local government. As a result, Tilt derecognized $4,302 of the Sea Hunter’s property, plant, and equipment within the greenhouse-agricultural structure category for the year ended December 31, 2020, based on management’s expectations of limited economic benefits from the continuing use of these assets.

 

 


StaffMarch 16, 2021
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TILT Holdings Inc. OTCQX: TLLTF ) reported it has completed its acquisition of Standard Farms Ohio LLC, previously announced on April 16, 2019. Ohio currently has 160,000 registered medical patients, representing more than double Ohio’s 2019 patient totals. In 2020, cannabis sales approached $277 million, representing almost 290% growth compared to 2019.

“With the expansion of the Standard Farms footprint into Ohio, we continue to execute on our strategy of delivering a differentiated portfolio of premium products and supply chain solutions to multi-state providers, licensed producers, and cannabis retailers, as well as opening up another dynamic marketplace to our brand partners,” said Gary Santo, President of TILT. “Through the acquisition of SFO, TILT now has plant-touching operations in three fast-growing limited license markets, and we are excited to provide Ohio’s 52 dispensaries with a diverse selection of top brands that their customers want while generating meaningful revenue.”

SFO’s purpose-built 9,600 sq. ft. processing and CO extraction facility is located just outside of Cleveland, providing ready access to the state’s 52 operating dispensaries. The Facility currently produces high-quality medical cannabis products including tinctures, vaporization cartridges, syringes and topicals, with the Company expecting to expand its product offerings to include concentrates and edibles inspired by TILT’s award-winning operations in Massachusetts and Pennsylvania.

Massachusetts

A couple of weeks ago, Tilt announced that it had announced it received regulatory approval from the Massachusetts Cannabis Control Commission to start the operations of eight additional grow rooms at its subsidiary, Commonwealth Alternative Care, Inc. Tilt said it intended to begin cultivation operations in the newly approved space later this month.

At the time  Gary Santo, President of TILT said, “We are pleased to announce the regulatory approval of the second phase of the planned expansion of our 117,000 sq ft cultivation and manufacturing facility in Taunton, Massachusetts,” said “We now have more than 56,000 sq. ft. of cultivation space with the ability to add a second grow tier to each of the eight new rooms, pending regulatory approval. Once planted, these additional rooms will fortify the supply of premium flower for our Taunton dispensary, and together with our award-winning kitchen and state-of-the-art extraction and processing lab, will support the production and distribution of high-quality, consistent products for our brand partners. As we continue to solidify CAC’s presence in the state, we remain committed to working with the CCC to achieve final state licenses permitting medical dispensary operations at our Brockton and Cambridge locations, as well as adult-use operations at both our Brockton and Taunton locations.”

 


StaffFebruary 18, 2021
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TILT Holdings Inc. (OTCQX: TLLTF) reported its preliminary earnings for the fourth quarter ending December 31, 2020, and full-year outlook for 2021 after the market closed on Wednesday. Tilt said that the fourth-quarter revenue is projected to be between $42.2 million and $43.2 million versus last year’s revenue of $40.4 million for the same time period. That figure, however, includes its former subsidiary Blackbird, without that the revenue would be projected to be between $41.3 million and $42.3 million.

The company forecast the quarter’s adjusted EBITDA to be between $2.6 million and $3.6 million versus last year’s adjusted EBITDA of $2.8 million. No information was given as to net losses or income. Tilt’s stock was lately trading at 62 cents, which isn’t too far from the company’s 52-week high of 75 cents.

“2020 was a transformative year for TILT, as the Company reimagined what an MSO could look like,” said Gary Santo, president of TILT. “We finished the year with a strong fourth quarter that saw continued improvement in harvest yields and production efficiencies at our plant-touching assets, and a return to pre-COVID revenue levels in our inhalation business. The added flexibility created by the divestiture of Blackbird during the quarter has positioned TILT to enter 2021 with additional resources and improved cash flow from operations that can be reinvested in core growth initiatives, such as research and development, expanding cultivation and contract manufacturing and wholesale operations.”

The company also noted that its 2021 strategic initiatives were fully funded and that it did not expect the initiatives to require significant CAPEX or M&A. The forecasted revenue was in the range of $205 million to $210 million. The adjusted EBITDA would range between $30 million to $32 million.

Mr. Santo added, “January has seen Jupiter ship over five million cartridges, a new Company record, and based upon our solid performance in the fourth quarter and a strong start to the new year, we are pleased to release full year 2021 revenue guidance of $205 million to $210 million and full-year 2021 adjusted EBITDA guidance of $30 million to $32 million. We look forward to delivering value to our shareholders through improved messaging and relentless execution of our strategic vision.”

The company also appointed Nicole Moyers as vice president of compliance and Patrick Beyea as director of compliance. Nicole “Nikki” Moyers will report directly to TILT’s General Counsel while Beyea will report to Moyers.


Debra BorchardtJanuary 19, 2021
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Cannabis software company Blackbird and payment processor company AeroPay announced a strategic partnership to bring cashless payments to cannabis businesses for online ordering. Blackbird was sold in November 2020 by its parent Tilt Holdings (OTC: TLLTF).  Tilt agreed to sell Yaris Acquisition, LLC better known as Blackbird to Slam Dunk, LLC, a Nevada limited liability corporation controlled by Tim Conder, TILT’s Chief Operating Officer and a member of the board of directors of the company. The company said the total valuation of the deal was $15 million and selling Blackbird resulted in a cut of $3 million in expenses quarterly.

The partnership includes the integration of AeroPay’s payments platform into Blackbird’s white-labeled dispensary menus and the BlackbirdGo cannabis marketplace. The two companies said they also have plans to bring greater efficiencies to other parts of the cannabis supply chain such as physical retail and B2B.

“Cash payments have dominated the cannabis retail consumer experience until now,” said Tim Conder, CEO & Co-Founder of Blackbird. “As licensed cannabis operators, we know the benefits of moving toward cashless payments but also understand the challenges with banking as a cannabis business. Our partnership with AeroPay and the integration of our platforms allows our retail partners and their customers to easily accept digital payments and remove the hurdles associated with being a cash-only business. Additionally, AeroPay’s banking relationships will help eliminate barriers for our retail partners.”

Through the integration, cannabis patients and customers using Blackbird will be able to pre-pay online at the time of check-out for delivery or curbside pick-up orders. Payments made with AeroPay will be facilitated through a secure bank-to-bank transfer between the patient or customer and the business.

AeroPay is a financial technology company providing alternative payment processing solutions to state-legal cannabis businesses.  AeroPay has been approved to work in every state where cannabis businesses can legally operate as well as Washington D.C. AeroPay’s compliant solution offers a safe, simple, and streamlined way for patients or customers to pay their favorite cannabis businesses.

“Our approach has always been to create a better payment experience for both businesses and their customers,” said Daniel Muller, CEO & Founder of AeroPay. “Blackbird is a premier end-to-end logistics and delivery company in the cannabis space and our partnership allows us to do just that for the cannabis industry.”

Dispensary patients and customers ordering through a Blackbird white-labeled menu or the BlackbirdGo marketplace will have the option to pay with AeroPay. For first time AeroPay users, the sign-up process is two easy steps and happens directly on the menu at the time of check-out — customers simply create an AeroPay account and link their bank. For repeat users, payments can be completed with a single click.

While the focus of this integration with Blackbird’s menus is to improve the retail and consumer experience, both Blackbird and AeroPay also provide B2B solutions for the cannabis industry. The companies have plans to streamline the cannabis experience in other parts of the supply chain and lower the volume of cash by implementing digital payments.

“We’re excited about the future of our partnership with AeroPay as both companies have the ability to service the entire value chain,” said Conder. “This is only the beginning of a long-term relationship that has the opportunity to change the way cannabis businesses operate.”

“Payments have been especially inconvenient for cannabis businesses and we are thrilled to work with the team at Blackbird to create a seamless cannabis shopping experience that is safer, faster, and cashless,” said Muller. “Ultimately, we want to give cannabis businesses the ability to operate in the same manner as any other business would.”


Debra BorchardtAugust 25, 2020
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TILT Holdings Inc. (OTCQB: TLLTF) reported that its revenue fell 9% sequentially to $38.6 million and dropped 1% from the last year’s second quarter in 2019. The company blamed the decline on “COVID-19 related headwinds including decreased sales at the Company’s inhalation technology subsidiary, Jupiter Research, as well as lower wholesale demand in the cannabis segment due to the temporary suspension of adult-use sales in Massachusetts from March 24th to May 25th.”

The net loss for TILT grew to $9 million versus the first quarter’s net income of $51,000, but much better than last year’s second-quarter net loss of $48.9 million. The positive adjusted EBITDA for the second consecutive quarter of $1.2 million, down $0.5 million from the quarter ended March 31, 2020, but was an improvement of $5.2 million from the prior-year period.

“Second quarter results reinforced our position that TILT’s balanced portfolio of businesses offers multiple trajectories for ongoing shareholder value creation,” said Mark Scatterday, CEO of TILT.  “For a second consecutive quarter, the company generated positive adjusted EBITDA, increased positive cash flow from operations, and improved its cash position, all while navigating the effects COVID-19.”

Still, the company noted in its filing that it has “Incurred comprehensive losses of $11,024,183 and $9,732,023 during the three and six months ended June 30, 2020, respectively, and has an accumulated deficit as at June 30, 2020, of $703,309,904. Management has estimated that the Company has sufficient working capital financing to complete current work plans; however, future development will require additional financing in order to complete other programs during the forthcoming year and thereafter.”

The bulk of the company’s revenue comes from Jupiter’s vape category which generated $28 million in revenue for the quarter but still reported a net loss of $473,000. Cannabis delivered $7.6 million in revenue with a net loss of $4.3 million.

Scatterday added, “Jupiter’s highly efficient operating model continues to provide a foundation of consistent profitability and broad client reach. This is supplemented by the strong cash flow of our plant-touching businesses in two of the strongest limited license markets, and by Blackbird, which provides additional upside with its highly versatile integrated suite of enterprise software and logistics solutions.”

 


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