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TILT Holdings Agrees to Acquire Jupiter Research
- Jupiter Research’s proprietary inhalation technology advances and diversifies TILT’s comprehensive portfolio of cannabis solutions across the supply chain
- Jupiter is one of the largest companies in the cannabis industry to be acquired, profitably booking US$105M in orders in 2018, with approximately 20% EBIDTA margins
CAMBRIDGE, Mass., January 3, 2019–(BUSINESS WIRE)–TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTC: SVVTF), the vertically-integrated infrastructure and technology platform serving the cannabis industry, announced today it has agreed to acquire Jupiter Research (“Jupiter”), a leading inhalation and vaporization technology company, to further expand its technology ecosystem and B2B reach across the supply chain. The Company signed a definitive agreement on January 2nd to acquire Jupiter Research for US$210 million to bolster TILT’s hardware offerings.
Jupiter Research, founded in 2015 by prior NJOY product developer Mark Scatterday and Bob Crompton, is leading the charge in the multibillion-dollar industry of vaporization. Scatterday, Jupiter’s President, stated, “Our rich heritage in CPG and e-cigarette product innovation combined with long-standing manufacturing partnerships in China provided us a market leading advantage to bring advanced high-performance technologies to the cannabis industry.”
Jupiter Research produces power supplies and cartridges specifically designed for cannabis oil in the market today, featuring exclusively ceramic CCELL technology. Jupiter’s team with decades of combined experience in vaporization partners with more than 700 brands and cannabis retailers across the U.S., Canada, Israel and the E.U. Jupiter generated approximately US$77M in 2018 revenue with an estimated 20 percent EBIDTA margin, and already has US$28M in booked orders going into Q1.
Our acquisition of Jupiter Research is paramount to our goal of consolidating and centralizing services for all industry verticals: cultivation, production and retail. Vaporization is increasingly becoming the preferred method for cannabis consumption. With Jupiter’s proprietary inhalation technology, our offerings in this category are going to be unparalleled.
Alex Coleman, Chief Executive Officer of TILT Holdings
Crompton added, “Jupiter Research’s monthly sales continue to increase 15 percent month over month, and we already have US$28M of booked orders going into Q1. The opportunity to combine the synergies of the TILT portfolio of companies is expected to add to our rapid growth.”
Consideration for the Jupiter acquisition is US$210M, consisting of US$70M cash and 56,116,723 common shares of TILT. The outside date for the closing of the acquisition is January 31, 2019.
More information about TILT’s other recent acquisitions and moves within the cannabis industry can be found here.
TILT Holdings Inc. is a vertically-integrated technology and infrastructure platform delivering the most comprehensive range of products and services across the cannabis industry. TILT strives to deliver the highest quality products and services through knowledge-based technology systems for both businesses and consumers. TILT technologies has a presence in more than 1,000 dispensaries across the U.S., Canada, Puerto Rico and Jamaica. For more information, please visit www.tiltholdings.com.
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