CAMBRIDGE, Mass.–(BUSINESS WIRE)–
TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTCQB: SVVTF),
a leading provider of products and services to businesses operating in
the cannabis industry, today released a letter from the Company’s
Interim Chief Executive Officer, Mark Scatterday.
Dear TILT Shareholders:
In stepping into TILT’s CEO role
last month, I shared that one of my operational priorities was
committing our organization to regular shareholder communication and
updates. Our investors have been and remain our key partners in building
TILT into what it is today—a Top 5 US-focused cannabis company by
revenue with 500+ employees, and products and solutions in 40 US States
across cultivation, production, consumer devices, packaged goods,
software, services and distribution.
While I won’t make it a regular practice to comment on daily stock price
movements, I have observed there remains a great deal of confusion out
in the market around TILT. After a strong first quarter earnings last
week where TILT reported $40mm of pro forma revenue, representing 3x
year-over-year revenue growth and a 330 basis point improvement in
Adjusted pro forma EBITDA Margin compared to the same period a year ago,
I do think it is valuable to briefly check-in.
I have heard six primary questions from shareholders and investors since
Q1 earnings. Below are my thoughts in regard to each:
1.
Did management decide to give itself a special first quarter comp
payout of stock options?
2.
Does TILT have sufficient sources of cash?
3.
What does TILT intend to do with these funds? Said differently,
what are its priorities for 2019?
4.
Is Mark Scatterday as Interim CEO committed to TILT?
5.
Is TILT management and its founders committed to the company?
6.
Does TILT remain optimistic about the US cannabis industry?
I look forward to maintaining a direct dialogue with our shareholders
and prospective investors on TILT and our opportunity ahead as one of
the largest and most innovative US-focused cannabis companies in the
industry.
Sincerely Yours,
Mark Scatterday
Interim Chief Executive Officer
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 United States (“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.
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, the receipt of the
Certificate of Operation by Standard Farms, the operational date of the
Facility, the expected growth of the Massachusetts and Illinois cannabis
market, the opinions or beliefs of management, 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 “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.
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.
The CSE has neither approved nor disapproved the contents of this
news release.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190606005241/en/
Contact Information:
Joel Milton
SVP of Business
Development
Phone: (303) 872-7255
Investor Contact:
Scott Van Winkle
ICR
Phone:
617-956-6736
investors@tiltholdings.com
Media Contact:
Cory Ziskind
ICR
Phone: 646-277-1232
tiltholdings@icrinc.com
Source: TILT Holdings Inc.
Released June 6, 2019