Jupiter Research’s proprietary inhalation technology advances and
diversifies TILT’s comprehensive portfolio of cannabis solutions across
the supply chain
Jupiter is one of the largest companies in the cannabis industry to
be acquired, profitably booking US$105M in orders in 2018, with
approximately 20% EBIDTA margins
CAMBRIDGE, Mass.–(BUSINESS WIRE)–
TILT
Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTC: SVVTF),
the vertically-integrated infrastructure and technology platform serving
the cannabis industry, announced today it has agreed to acquire Jupiter
Research (“Jupiter”), a leading inhalation and vaporization
technology company, to further expand its technology ecosystem and B2B
reach across the supply chain. The Company signed a definitive agreement
on January 2nd to acquire Jupiter Research for US$210 million to bolster
TILT’s hardware offerings.
Jupiter Research, founded in 2015 by prior NJOY product developer Mark
Scatterday and Bob Crompton, is leading the charge in the
multibillion-dollar industry of vaporization. Scatterday, Jupiter’s
President, stated, “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.”
Jupiter Research produces power supplies and cartridges specifically
designed for cannabis oil in the market today, featuring exclusively
ceramic CCELL technology. Jupiter’s team with decades of combined
experience in vaporization partners with more than 700 brands and
cannabis retailers across the U.S., Canada, Israel and the E.U. Jupiter
generated approximately US$77M in 2018 revenue with an estimated 20
percent EBIDTA margin, and already has US$28M in booked orders going
into Q1.
“Our 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.”
Crompton added, “Jupiter Research’s monthly sales continue to increase
15 percent month over month, and we already have US$28M of booked orders
going into Q1. The opportunity to combine the synergies of the TILT
portfolio of companies is expected to add to our rapid growth.”
Consideration for the Jupiter acquisition is US$210M, consisting of
US$70M cash and 56,116,723 common shares of TILT. The outside date for
the closing of the acquisition is January 31, 2019.
More information about TILT’s other recent acquisitions and moves within
the cannabis industry can be found here.
About TILT
TILT Holdings Inc. is a vertically-integrated technology and
infrastructure platform delivering the most comprehensive range of
products and services across the cannabis industry. TILT strives to
deliver the highest quality products and services through
knowledge-based technology systems for both businesses and consumers.
TILT technologies has a presence in more than 1,000 dispensaries across
the U.S., Canada, Puerto Rico and Jamaica. For more information, please
visit www.tiltholdings.com.
The CSE has neither approved nor disapproved the contents of this
news release.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of the securities in the United
States. The securities have not been and will not be registered under
the United States Securities Act of 1933, as amended (the “U.S.
Securities Act”) or any state securities laws and may not be offered or
sold within the United States or to U.S. Persons unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
Forward-Looking Information
This news release contains forward-looking information based on
current expectations. Forward-looking information is provided for the
purpose of presenting information about management’s current
expectations and plans relating to the future and readers are cautioned
that such statements may not be appropriate for other purposes. Forward
looking information may include, without limitation, statements
regarding the operations, business, financial condition, expected
financial results, performance, prospects, opportunities,
priorities, targets, goals, ongoing objectives, milestones, strategies
and outlook of TILT, and includes statements about, among other things,
future developments, the future operations, strengths and strategy of
the Company. These statements should not be read as guarantees of future
performance or results. These statements are based upon certain material
factors, assumptions and analyses that were applied in drawing a
conclusion or making a forecast or projection, including TILT’s
experience and perceptions of historical trends, current conditions and
expected future developments, as well as other factors that are believed
to be reasonable in the circumstances.
Examples of the assumptions underlying the forward-looking statements
contained herein include, but are not limited to those related to: the
receipt of all necessary consents and approval for the acquisition of
Jupiter, the ability of TILT to obtain necessary financing in the future
to pursue its business plans, the achievement of goals, the obtaining of
all necessary permits and governmental approvals, as well as
expectations regarding availability of equipment, skilled labour and
services needed for cannabis operations, intellectual property rights,
development, operating or regulatory risks, trends and developments
in the cannabis industry, business strategy and outlook, expansion and
growth of business and operations, the timing and amount of capital
expenditures; future exchange rates; the impact of increasing
competition; conditions in general economic and financial markets;
access to capital; future operating costs; government regulations,
including future legislative and regulatory developments involving
medical and recreational marijuana and the timing thereto; receipt of
appropriate and necessary licenses in a timely manner; the effects of
regulation by governmental agencies; the anticipated changes to laws
regarding the recreational use of cannabis; the demand for cannabis
products and corresponding forecasted increase in revenues; and the size
of the medical marijuana market and the recreational marijuana market.
Although such statements are based on management’s reasonable
assumptions at the date such statements are made, there can be no
assurance that they it be completed on the terms described above and
that such forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such forward-looking information. Accordingly, readers
should not place undue reliance on the forward-looking information. TILT
Holdings assumes no responsibility to update or revise forward-looking
information to reflect new events or circumstances unless required by
applicable law.
By its nature, forward-looking information is subject to risks and
uncertainties, and there are a variety of material factors, many of
which are beyond the control of TILT, and that may cause actual outcomes
to differ materially from those discussed in the forward-looking
statements. These factors include, but are not limited to: denial or
delayed receipt of all necessary consents and approvals; need for
additional capital expenditures; increased costs and timing of
operations; unexpected costs associated with environmental liabilities;
requirements for additional capital; reduced future prices of cannabis;
failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the cannabis industry;
delays in obtaining governmental approvals, permits or financing or in
the completion of development or construction activities; title
disputes; claims limitations on insurance coverage; risks related to the
integration of acquisitions; fluctuations in the spot and forward price
of certain commodities (such as diesel fuel and electricity); changes in
national and local government legislation, taxation, controls,
regulations and political or economic developments in the countries
where the Company may carry on business in the future; liabilities
inherent in cannabis operations; risks relating to medical and
recreational cannabis; cultivation, extraction and distribution
problems; competition for, among other things, capital, licences and
skilled personnel; risks relating to the timing of legalization
of recreational cannabis; changes in laws relating to the cannabis
industry; and management’s success in anticipating and managing
the foregoing factors.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190103005197/en/
Contact Information:
Joel Milton, Investor Relations of TILT
Holdings
(303) 872-7255
Media Contact:
Anne Baker
InkHouse
Phone:
415-299-6371
press@tiltholdings.com
Investor Contact:
Scott Van Winkle
ICR
Phone:
617-956-6736
investors@tiltholdings.com
Investors.tiltholdings.com
Renmark Financial Communications Inc.
Melanie Barbeau: mbarbeau@renmarkfinancial.com
Tel:
(416) 644-2020 or (514) 939-3989
www.renmarkfinancial.com
Source: TILT Holdings Inc.
Released January 3, 2019