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.”