TILT Archives - Green Market Report

William SumnerWilliam SumnerMay 2, 2019
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6min3210

It’s time for your Daily Hit of cannabis financial news for May 2, 2019.

On The Site

Canopy Growth

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is acquiring the German-based, Bionorica SE-founded C3 Cannabinoid Compound Company in an all-cash deal valued at €225.9 million (CDN $342.9 million) or roughly $250 million. The move is intended to expand Canopy Growth’s reach in Europe.

Plus Products

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) reported its results for the fourth quarter and calendar year ending December 31, 2018. The quarter’s revenues were $3.3 million and the company delivered a net loss of $2.9 million. This was an increase in sales of 770% over 2017 for the same time period and a 31% sequential increase.

Executive Order Establishes Michigan Marijuana Regulatory Agency

Governor Whitmer’s executive order 2019-07 has established the Marijuana Regulatory Agency (MRA) within the Department of Licensing and Regulatory Affairs (LARA), combining previous authorities, functions, and duties into an agency which allows the state of Michigan to more efficiently regulate both medical and adult-use marijuana.

In Other News

Planet 13

Planet 13 Holdings Inc. (CSE: PLTH) (OTCMKTS: PLNHF) has announced their fourth quarter and full-year financial results for 2018. In the fourth quarter, revenues rose to $8.3 million. Adjusted EBITDA was a loss of $1.9 million, and the company had a net loss of $4 million. For the year, revenues were $21.2 million, adjusted EBITDA was a loss of about $0.5 million, and the company incurred a net loss of $10.7 million.

TILT

TILT Holdings Inc. (CSE: TILT) (OTCMKTS: SVVTF) has announced their year-end financial results for 2018. Revenue for the year was $5.7 million with an additional $98 million in pro forma revenue. The net loss was $552.1 million, but that included a $496.4 million one-time, non-cash goodwill impairment taken at the end of fiscal 2018 related to the company’s reverse takeover of Sante Veritas Holdings. Excluding the reverse takeover, the company’s net loss was $55.7 million.

True Leaf

The pet-focused hemp and cannabis wellness brand, True Leaf Medicine International Ltd. (CSE: MJ) (OTCQX: TRLFF) (FSE: TLA) announced today that they have received C$914,442.73 from the exercise of warrants before their expirations on April 21, 2019. In total, the company exercised 2,575,895 warrants at a price of C$0.355 per warrant. “True Leaf is proud to have strong support from our investor community as demonstrated by the successful warrant exercise,” said Darcy Bomford, Founder and CEO of True Leaf. “This additional capital will strengthen our balance sheet and allow us to continue to execute on our growth plans, including bringing a legally-compliant CBD product for pets to market and expanding our global distribution, including entering new markets in the Asia Pacific region and Australia.”

Alternate Health

Alternate Health Corp. (CSE: AHG) (OTCQB: AHGIF) is making a play for the CBD industry. Today the company announced that it will acquire Blaine Labs Inc., a manufacturer and distributor of FDA-approved and cGMP-certified dermatological products, for $20 million. Blaine Labs currently has over 50 SKUs currently available in major retailers, including Walmart, Amazon, CVS and Walgreens. Alternate Health hopes to use the company’s existing equipment and distribution network to launch a proprietary line of CBD-infused products.

CannTrust

CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) has announced the pricing of its previously-announced underwritten public offering. The company is selling 30,909,091 common shares at a price of $5.50 per share for gross proceed of around $170 million, minus underwriting discounts and commissions and estimated offering expenses. Some shareholders are also selling 5,454,545 common shares in the offering. Additionally, the company has granted to the underwrites a 30-day option to purchase up to an additional 4,636,363 and 818,182 common shares, respectively, at the public offering price. The offering is expected to close on or around May 6, 2019.


StaffStaffFebruary 14, 2019
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2min6480

TILT Holdings Inc.  (CSE: TILT) (OTC: SVVTF) announced preliminary and unaudited pro forma January 2019 gross revenue of $18.3 million. The company’s pro forma January revenue was driven by continued growth of all companies within TILT, including recent acquisitions.

In just January 2019 TILT said its unaudited gross revenue was $13.8 million versus the $7.6 million for the entire year of 2018. Gross margins for January were 16% given the early stages of business integrations, and full-year 2018 gross margins were 21%.

TILT‘s annual audited financials will be available prior to April 30, 2019, and consolidated financials for the first quarter, including the acquisitions of Jupiter, Standard Farms and Blackbird, will be available prior to May 31, 2019.

The company said that increases in Jupiter shipments reflected strong consumer demand of the company’s vaporizers. Blackbird’s continued expansion in California and success in the Nevada wholesale market boosted revenue. In Pennsylvania, Standard Farms is among the leading cultivation and production companies, selling their product wholesale throughout the state.

Baker saw an increase in the number of dispensaries using their software in January. Finally, TILT’s MA operations contributed as well, though January numbers do not reflect the opening of any recreational stores, which are expected to come online throughout 2019.

“Following the Business Combination and TILT’s public listing on the Canadian Securities Exchange in early December 2018, we have been able to acquire and integrate numerous market leading cannabis companies,” said Alex Coleman, Chairman and CEO of TILT.


Debra BorchardtDebra BorchardtJanuary 3, 2019
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4min10130

TILT Holdings Inc.  (CSE: TILT) (OTC: SVVTF) has acquired vape technology company Jupiter Research in a deal valued at $210 million. The acquisition is expected to close on January 31. TILT’s goal was to expand its technology ecosystem and B2B reach across the supply chain.

“Our latest acquisition of Jupiter Research is paramount to our goal of consolidating and centralizing services for all industry verticals: cultivation, production, and retail,” said Alex Coleman, Chief Executive Officer of TILT Holdings. “Vaporization is increasingly becoming the preferred method for cannabis consumption. With Jupiter’s proprietary inhalation technology, our offerings in this category are going to be unparalleled.”

Jupiter Research was founded in 2015 by prior NJOY product developer Mark Scatterday and Bob Crompton, founded in 2015. Jupiter Research produces power supplies and cartridges specifically designed for cannabis oil in the market today, featuring exclusively ceramic CCELL technology. The company said that Jupiter has achieved annual orders over US$100M in 2018, ending the year with over a US$30M sales backlog.

“Our rich heritage in CPG and e-cigarette product innovation combined with long-standing manufacturing partnerships in China provided us a market leading advantage to bring advanced high-performance technologies to the cannabis industry,” said Scatterday, the company’s President.

Crompton added, “Jupiter Research’s monthly sales ccontinue to increase 15 percent month over month, ending Q4 with booked orders exceeding US$44M.  The opportunity to combine the synergies of the TILT portfolio of companies is expected to add to our rapid growth.”

TILT only recently began trading on the Canadian Securities Exchange under the ticker symbol “TILT” after its acquisition of Standard Farms.  TILT acquired Standard Farms for $12 million in cash and $28 million in securities. Securities for TILT were issued at C$5.25 per common share and, pending regulatory approval, the acquisition is expected to close on March 31, 2019.

Also last month, TILT  acquired the cannabis distribution company Blackbird Holdings Corp. for $50 million. Providing logistics operations and software solutions for operators in the cannabis supply chain, Blackbird works with more than 250 wholesale and retail cannabis operators in the states of California and Nevada; with plans to increase its footprint in California and to expand into Arizona and Massachusetts.

Terms Of The Deal

TILT said that the deal consists of $70M cash and $140M in units exchangeable for 56,116,723 shares of TILT.

 


William SumnerWilliam SumnerDecember 6, 2018
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2min8770

The cannabis technology platform, TILT Holdings Inc. (CSE: TILT), announced today that it had acquired the cannabis distribution company Blackbird Holdings Corp. for USD $50 million.

Providing logistics operations and software solutions for operators in the cannabis supply chain, Blackbird works with more than 250 wholesale and retail cannabis operators in the states of California and Nevada; with plans to increase its footprint in California and to expand into Arizona and Massachusetts. The company also provides a consumer marketplace for cannabis delivery, dubbed BlackbirdGo, which helps its California clients connect to approximately 95,000 consumers statewide.

Under the agreement, TILT will pay $5 million in cash and $45 million in securities. This will include issuance of compressed shares of TILT, which is comprised of 100 common shares per compressed share, at a price of C$5.25. The acquisition is expected to close on January 31, 2019.

The Blackbird acquisition represents a major expansion of our operations and delivery capabilities for cannabis businesses,” said Alex Coleman, CEO of TILT. “Blackbird has built out an incredible offering of solutions focused on distribution and last-mile, direct-to-consumer delivery as well as software for wholesale and retail inventory management. That is an important element of our portfolio and we’re happy to welcome Blackbird to the TILT family.”

TILT Goes Public, Releases Details on Other Acquisition

TILT also announced today that the company has begun trading on the Canadian Securities Exchange under the ticker symbol “TILT” and has released further details about its previously announced acquisition of Standard Farms.

Standard Farms is a multi-state medical cannabis company that focuses on extraction and cultivation, and its products are in approximately 95% of Pennsylvania’s dispensaries. TILT has acquired Standard Farms for $12 million in cash and $28 million in securities. Securities for TILT will be issued at C$5.25 per common share and, pending regulatory approval, the acquisition is expected to close on March 31, 2019.


Debra BorchardtDebra BorchardtNovember 23, 2018
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3min11650

TILT is getting one step closer to listing its shares on the Canadian Securities Exchange using the symbol TILT. This week the company closed on its merger and announced a capital raise of $119 million by a special purpose financing entity “Finco.”  Finco issued 22,886,858 subscription receipts at a price of C$5.25 per subscription receipt.

TILT Holdings is the merger of Baker Technologies Inc., Briteside Holdings LLC, Sea Hunter Therapeutics, LLC and Santé Veritas Holdings Inc. (CSE: SV). The business combination results in the creation of two market business lines focused on infrastructure and technology which, along with the people and capital, allows TILT to deliver products to businesses and consumers.

“With TILT we are building a technology-driven infrastructure solution to maximize customer engagement and product delivery while also enabling industry participants to scale across new markets with these same systems,” said Alex Coleman, Co-Chairman and Chief Executive Officer of TILT, and co-founder of Sea Hunter. “We intend to leverage the Business Combination and the net proceeds of the Offering to accelerate our growth across the cannabis industry with a pipeline of infrastructure expansions, acquisitions and partnerships. We are well-positioned to effectively and efficiently capitalize on the consolidation that is occurring across most markets in the industry with the goal of delivering the highest quality products and services where laws permit.”

Terms Of The Deal

The offering was completed by a syndicate of agents led by Canaccord Genuity Corp. and including Cormark Securities Inc., Eight Capital Corp., GMP Securities L.P., PowerOne Capital Markets Limited, Haywood Securities Inc. and Gravitas Securities Inc.

The statement said that each subscription receipt would automatically be converted into one Finco common share immediately prior to and in connection with the completion of the merger, without payment of additional consideration or further action on the part of the holder. As part of the merger, each Finco common share was exchanged for one common share of the company.

“With a presence in a third of all U.S. dispensaries, TILT – through Baker – will have a proven track record of engaging consumers and optimizing dispensary operations and revenue,” added Coleman. “With this capital raise, we are poised to grow our market share and enable more retailers to increase store traffic, revenue and customer loyalty.”

 



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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