TILT Archives - Green Market Report

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.

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.”