Strengthens financial profile and positions the Company for future
growth
CAMBRIDGE, Mass.–(BUSINESS WIRE)–
TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTCQB: SVVTF),
a leading business to business cannabis company, announced today that it
has successfully secured a US$20 million credit facility (“Credit
Facility”). The Credit Facility strengthens the Company’s financial
profile and is the first step towards a larger raise, taking advantage
of a lower cost of capital and positioning the Company for future growth.
“We are pleased to announce this first closing of a Credit Facility as
part of our larger debt financing initiatives, indicative of the capital
market’s increasing acceptance of cannabis companies,” said Alex
Coleman, Chairman and CEO of TILT. “By issuing debt, we can both lower
our cost of capital and minimize dilution to our shareholders. This is
another example of how TILT is focused on adhering to the highest level
of financial principles with a commitment to building long-term
shareholder value as we have negotiated a low cost approach to capital
for expansion. Further, the majority of capital initiatives are
allocated for asset expansion, as the operations of the Company require
substantially less funding despite our rapid growth.”
The Credit Facility has been created pursuant to a loan agreement (“Loan
Agreement”) dated April 29, 2019 and among Standard Farms, LLC
(“Standard Farms”) and White Haven RE, LLC, both indirect wholly-owned
subsidiaries of TILT, as borrowers (the “Borrowers”), Bio Alpha
Ventures, LLC (“BAV”), Goldrath Alpha Venture LLC (“GAV”) and certain
other parties consented to by BAV and GAV, as lenders (collectively, the
“Lenders”), BAV and GAV as agents for the Lenders and TILT and each of
its indirect and direct wholly owned subsidiaries as guarantors for the
Borrowers (collectively, the “Guarantors”). BAV and GAV are wholly owned
companies of Peter Bio and Jonathan Goldrath, respectively, officers of
Standard Farms. Under the Loan Agreement the Lenders will provide US$8
million initially (the “Initial Advance”), followed by an additional
US$12 million to be issued by May 10th (the “Additional
Advance”, and together with the Initial Advance, the “Term Loan”),
subject to the satisfactory completion of due diligence by the Lenders,
at an effective interest rate of 18.75%. The Initial Advance will become
due and payable on June 28, 2019, unless the Additional Advance is
issued by the Lenders, in which case the Term Loan will be payable 180
days after the closing of the Term Loan. The Initial Advance is secured
by a first lien on all of the tangible and intangible assets of the
Borrowers. If the Additional Advance is issued, a first lien will also
be granted on all of the tangible and intangible assets of Sea Hunter
Therapeutics, LLC. Proceeds will be utilized to fund existing and future
growth projects, future M&A activity and general corporate purposes.
About TILT
TILT is a leading business-to-business cannabis company, offering a
diverse range of value-added products and services which support other
industry participants. TILT enables other cannabis companies operate
more efficiently and connect with consumers more effectively. The
Company realizes revenue from the sale of a broad range of cannabis
products, vaporizer and inhalation devices, business and consumer
delivery services and a suite of software products to 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. The Company is organized in two main business units, Software
& Services and Consumer Devices & Packaged Goods, augmenting
competencies across the organization in research, manufacturing,
packaging and technology to deliver end-to-end 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 which are helping to shape the industry’s evolution.
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.
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 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190501006122/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 May 1, 2019