CAMBRIDGE, Mass.–(BUSINESS WIRE)–
TILT
Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTC: SVVTF)
today announced preliminary and unaudited pro forma January 2019
gross revenue of US$18.3 million(1). This compares
favorably to the Company’s unaudited pro forma 2018 annual gross
revenue of US$97.3 million(2). Gross margins for
January were 16% given the early stages of business integrations, and
full-year 2018 gross margins were 21%. These recent financial results
establish TILT as one of the top U.S. revenue producing publicly traded
cannabis companies.
Represents the pro forma unaudited gross revenue generated
by TILT in January 2019 assuming that closing of the acquisitions
of Jupiter Research LLC (“Jupiter”), Blackbird Holdings Corp.
(“Blackbird”) and Standard Farms LLC (“Standard Farms”) occurred
on January 1, 2019. The acquisitions closed on the following
dates: (i) Jupiter (January 14, 2019); (ii) Blackbird (January 16,
2019); and (iii) Standard Farms (January 28, 2019).
Represents the pro forma unaudited gross revenue generated
by TILT in fiscal 2018 assuming the closing of the business
combination (the “Business Combination”) between Sea Hunter
Therapeutics LLC (“SHT”), Briteside Holdings, LLC (“Briteside”),
Baker Technologies, Inc. (“Baker”) and Santé Veritas Holdings Inc.
(“SVT”), and the acquisitions of Jupiter, Blackbird and Standard
Farms occurred on January 1, 2018.
Pro forma January revenue was driven by continued growth of all
companies within TILT, including recent acquisitions. Increases in
Jupiter shipments reflect strong consumer demand of the company’s
vaporizers. Blackbird’s continued expansion in California and success in
the Nevada wholesale market boosted revenue. In Pennsylvania, Standard
Farms is among the leading cultivation and production companies, selling
their product wholesale throughout the state. Baker saw an increase in
the number of dispensaries using their software in January. Finally,
TILT’s MA operations contributed as well, though January numbers do not
reflect the opening of any recreational stores, which are expected to
come online throughout 2019.
With operations and sales in forty U.S. states, Canada and Europe, TILT
provides products and services which enable businesses to operate more
efficiently and connect with the consumer more effectively. Revenue is
realized from the sale of cannabis products and packaged goods,
inhalation devices, delivery to businesses and consumers and a broad
suite of licensed software.
“Following the Business Combination and TILT’s public listing on the
Canadian Securities Exchange in early December 2018, we have been able
to acquire and integrate numerous market leading cannabis companies,”
said Alex Coleman, Chairman and CEO of TILT. “Through these initiatives,
TILT has emerged as a leading and comprehensive B2B cannabis company in
the market. We manufacture customized cannabis products and devices for
our business customers while also providing them with a route to market
and software and services, all helping them realize operating
efficiencies and sales growth. The Company is uniquely focused on
investing in the research and development necessary to deliver
leading-edge products and services to one of the fastest growing
industries in the world. We are very confident in our ability to
continue to capitalize on our unique value proposition we bring to the
market.”
TILT’s historical results do not reflect any material sales from
cannabis products. The Company expects to have comprehensive vertical
operations in seven US states, Canada and Southern Europe by the end of
the first quarter 2019. 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 general asset 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.
The Company’s annual audited financials will be available prior to April
30, 2019 and consolidated financials for the first quarter, including
the acquisitions of Jupiter, Standard Farms and Blackbird discussed
above, will be available prior to May 31, 2019.
About TILT
TILT Holdings is business-to-business cannabis company focused on the
research, development, manufacture, distribution and sale of products
and services. The Company maintains two primary divisions, Technology
for software and services and Infrastructure for cannabis products and
devices. Revenue is realized from cannabis cultivation, the sale of
flower, concentrates, oils, consumables and topicals, vaporizer and
inhalation devices, delivery and inventory management services and
licensed software. 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. The
Company has operations in 40 U.S. states and 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, 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/20190214005287/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 February 14, 2019