CAMBRIDGE, Mass.–(BUSINESS WIRE)–
TILT
Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTC: SVVTF)
today announced preliminary and unaudited pro forma fourth
quarter 2018 gross revenue of US$31 million1, with 15%
gross margins. The Company will release audited financial results for
its fourth quarter and full year 2018 ended December 31, 2018 after
market close on Tuesday, April 30, 2019.
Fourth quarter pro forma revenue was driven by continued growth
of all companies within TILT, including recent acquisitions. TILT’s
broad source of revenue now includes the sale of cannabis products,
vaporizer devices, business and consumer delivery and software and
services. The businesses that now comprise TILT were segment leading
while independent, and are now benefiting from integration, allowing
them to sell a broader suite of value-added products and services to the
same business customer base. New product launches by Jupiter, expanded
services in California, Nevada and other geographic territories by
Blackbird, a more robust software platform by Baker and additional
states for cannabis like Pennsylvania from Standard Farms are all
contributing to the historical and future growth of the Company. This
will further be enhanced through the transition of certain states such
as Massachusetts to adult use, where demand is significantly higher than
a medical only state.
“TILT’s Q4 pro forma revenue indicates that the Company is one of the
larger revenue producing US companies in the cannabis industry2,”
said Alex Coleman, TILT’s Chief Executive Officer. “Our unique B2B model
enables us to provide software, hardware, distribution and production
support to over 1,500 retailers and producers, generating significant
revenue for businesses that are our clients. As the complementary
businesses we have acquired and merged continue to integrate, we look
forward to even greater growth and revenue opportunities as well as
continuously improving margins.”
With operations and sales in forty states in the United States (“U.S.”),
Canada and Europe, TILT provides products and services, which enable
other cannabis businesses to operate more efficiently and connect with
the consumer more effectively.
TILT’s historical results do not reflect any material sales from
cannabis products. Massachusetts, TILT’s first cannabis market and the
location of its corporate headquarters, is in the process of converting
previously not-for-profit medical licenses to for-profit adult-use
licenses. TILT anticipates further revenue growth throughout the year as
adult-use sales in Massachusetts come online, from the Company’s
expansion in other states and the ongoing integration of software
products and services, all realizing value from every stage of the
cannabis supply chain. In markets where TILT has manufacturing assets,
it also realizes revenue from contract manufacturing.
1 Represents the pro forma unaudited gross
revenue generated by TILT in the fourth quarter of fiscal 2018 assuming
the following occurred on October 1, 2018: (i) the closing of the
business combination (the “Business Combination”) between Sea Hunter
Therapeutics LLC, Briteside Holdings, LLC, Baker Technologies, Inc. and
Santé Veritas Holdings Inc.; and (ii) the acquisitions of Jupiter
Research LLC (“Jupiter”), Blackbird Holdings Corp. (“Blackbird”) and
Standard Farms LLC (“Standard Farms”). Actual closing dates were: (i)
Business Combination (November 21, 2018); (ii) Jupiter (January 14,
2019); (iii) Blackbird (January 16, 2019); and (iv) Standard Farms
(January 28, 2019).
2 Source: https://www.newcannabisventures.com/cannabis-company-revenue-ranking/
About TILT
TILT is a leading provider of products and
services to businesses operating in the cannabis industry. The Company
offers the contract manufacturing of marijuana in a variety of form
factors, vaporizer and inhalation devices, business and consumer
delivery services and a broad suite of software products for over 1,500
retailers and brands throughout the U.S., Canada and Europe. The
majority of TILT’s products are customized to client specifications and
branding, all enabling them to operate their businesses more efficiently
and connect with their customers more effectively. The Company is
organized in two main business units, Software & Services and Consumer
Devices & Packaged Goods, designed to augment competencies across the
organization in research, manufacturing, packaging and technology to
deliver end-to-end services and customer solutions. All of TILT’s
products are supported by an extensive research process led by
scientists and engineers, using data analytics and discovery to produce
new products helping shape the industry. Headquartered in Cambridge, MA,
with offices throughout the U.S., Toronto and London, TILT has over 500
employees and has sales in 40 U.S. states, Canada and Europe. For more
information, please visit www.tiltholdings.com.
Pro Forma Presentation
The pro forma information
(“Pro Forma Information”) presented herein is not necessarily indicative
of the operating results or financial condition that would have been
achieved if the proposed acquisitions to which the Pro Forma Information
relates had been completed on the dates or for the periods presented,
nor do they purport to project the results of operations or financial
position of the combined entities for any future period or as of any
future date. Actual amounts recorded upon consummation of the
acquisitions to which the Pro Forma Information relates would likely
differ from those recorded in the Pro Forma Information. The Pro Forma
Information does not reflect any special items such as integration costs
or operating synergies that may be realized as a result of the
acquisitions to which the Pro Forma Information relates.
Accounting Constructs and Unaudited, Unreviewed Status of
Financial Information
The financial information included
in this press release is not required for any regulatory purpose and is
therefore provided solely for additional investor guidance. All
financial information provided is neither audited nor reviewed. Where
possible the information has been constructed by management from
available audited or audit reviewed financial statements. Where no
audited or audit reviewed information has been available, additional
management accounting information has been utilized to construct the
financial information.
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 TILT’s future business
operation, expectation of sales or revenue, the opinions or beliefs of
management, 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 TILT.
Generally, forward looking information can be identified by the use of
forward looking terminology such as “pro forma”, “plans”, “expects” or
“does not expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate”, or
“believes”, or variations of such words and phrases or state that
certain actions, events or results “may”, “could”, “would”, “might” or
“will be taken”, “occur” or “be achieved”. 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
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.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190415005309/en/
Contact Information:
Joel Milton, SVP of Business Development
(303)
872-7255
Media Contact:
Cory Ziskind
ICR
Phone:
646-277-1232
tiltholdings@icrinc.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 April 15, 2019