As one of the largest cannabis tech deals in history, Jupiter brings
massive consumer market opportunity to TILT’s portfolio
CAMBRIDGE, Mass.–(BUSINESS WIRE)–
TILT
Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTC: SVVTF), a
global technology and infrastructure company engaged in research,
development, manufacturing and sale of a broad range of products for the
cannabis industry, announced today it has officially closed the
acquisition of Jupiter
Research (“Jupiter”), a leading inhalation and vaporization
technology company. This synergistic acquisition broadens TILT’s product
offerings and increases Jupiter’s reach by integrating it into the
Company’s proprietary supply chain.
The Company signed a definitive agreement on January 2, 2019 to acquire
Jupiter Research for US$210 million to bolster TILT’s hardware offerings
and further optimize the consumer consumption experience. 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%
EBITDA margins.
“At TILT, we’re focused on building a company that provides services and
technology to cannabis companies at all stages. We’re strongly
positioned at the center of the cannabis ecosystem, and Jupiter’s team
will add strong consumer expertise to our portfolio,” said Alex Coleman,
Chief Executive Officer of TILT Holdings. “Jupiter has the best
inhalation technology in the industry and has successfully reached the
fastest growing segment of vaporizing consumers, and we are excited to
accelerate their already dynamic growth. Broadly, consumers across many
channels are showing a strong preference for inhalation devices, and
Jupiter’s pipeline of product introductions will solidify its position
as the market device leader in cannabis,” Coleman said.
“We anticipate our continued high growth trajectory with the integration
of the software and services of TILT’s portfolio of companies,” says
Mark Scatterday, President and CEO of Jupiter Research. “In addition,
our new state-of-the-art 12,000 square foot fundamental research and
product development center will be operational in Q2 of this year.”
Consideration for the Jupiter acquisition is US$210M, consisting of
US$70M cash and 56,116,723 common shares of TILT. 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 have 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
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/20190114005419/en/
Joel Milton, SVP Business and Corporate Development
Phone:
561-282-6377
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 14, 2019