TILT Holdings Announces $31 Million Q4 Pro Forma Revenue
April 21st, 2019
CAMBRIDGE, Mass.–(BUSINESS WIRE)– TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTC: SVVTF) today announced preliminary and unaudited pro forma fourth quarter 2018 gross revenue of US$31 million1, with 15% gross margins. The Company will release audited financial results for its fourth quarter and full year 2018 ended December 31, 2018 after market close on Tuesday, April 30, 2019.
Fourth quarter pro forma revenue was driven by continued growth of all companies within TILT, including recent acquisitions. TILT’s broad source of revenue now includes the sale of cannabis products, vaporizer devices, business and consumer delivery and software and services. The businesses that now comprise TILT were segment leading while independent, and are now benefiting from integration, allowing them to sell a broader suite of value-added products and services to the same business customer base. New product launches by Jupiter, expanded services in California, Nevada and other geographic territories by Blackbird, a more robust software platform by Baker and additional states for cannabis like Pennsylvania from Standard Farms are all contributing to the historical and future growth of the Company. This will further be enhanced through the transition of certain states such as Massachusetts to adult use, where demand is significantly higher than a medical only state.
TILT’s Q4 pro forma revenue indicates that the Company is one of the larger revenue producing US companies in the cannabis industry2. Our unique B2B model enables us to provide software, hardware, distribution and production support to over 1,500 retailers and producers, generating significant revenue for businesses that are our clients.
Alex Coleman, TILT’s Chief Executive Officer
As the complementary businesses we have acquired and merged continue to integrate, we look forward to even greater growth and revenue opportunities as well as continuously improving margins.
With operations and sales in forty states in the United States (“U.S.”), Canada and Europe, TILT provides products and services, which enable other cannabis businesses to operate more efficiently and connect with the consumer more effectively.
TILT’s historical results do not reflect any material sales from cannabis products. 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 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.
¹Represents the pro forma unaudited gross revenue generated by TILT in the fourth quarter of fiscal 2018 assuming the following occurred on October 1, 2018: (i) the closing of the business combination (the “Business Combination”) between Sea Hunter Therapeutics LLC, Briteside Holdings, LLC, Baker Technologies, Inc. and Santé Veritas Holdings Inc.; and (ii) the acquisitions of Jupiter Research LLC (“Jupiter”), Blackbird Holdings Corp. (“Blackbird”) and Standard Farms LLC (“Standard Farms”). Actual closing dates were: (i) Business Combination (November 21, 2018); (ii) Jupiter (January 14, 2019); (iii) Blackbird (January 16, 2019); and (iv) Standard Farms (January 28, 2019).
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 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.
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