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TILT Holdings Reports Preliminary Consolidated Revenue for January 2019 and Fiscal Year 2018
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.
1Represents 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).
²Represents 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.
³Represents the unaudited gross revenue generated by TILT in January 2019, which includes all unaudited gross revenue generated by each of Jupiter, Blackbird and Standard Farms after the acquisition by TILT of each entity at the dates set forth in (1).
⁴Represents the unaudited gross revenue generated by TILT in fiscal year 2018, being the unaudited gross revenue generated by SHT for the entire 2018 fiscal year and the unaudited gross revenue generated by Briteside, Baker and SVT after the closing of the Business Combination transaction on November 21, 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. Through these initiatives, TILT has emerged as a leading and comprehensive B2B cannabis company in the market.
Alex Coleman, Chairman and CEO of TILT
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.
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.
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