TILT Holdings Inc OTCMKTS: SVVTF Announces Expansion of Jupiter Distribution in California

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TILT Holdings Inc OTCMKTS: SVVTF 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.

TILT Holdings Inc OTCMKTS: SVVTF 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.

TILT Holdings Inc OTCMKTS: SVVTF On 22 April, 2019 announced that Jupiter Research, LLC (“Jupiter”), a leader in inhalation and vaporization technology and wholly owned subsidiary of TILT, has further expanded distribution of its proprietary, high-performance technologies in California through its integration with TILT’s software and supply chain services. The expansion allows Jupiter to establish a physical presence with increased geographic reach throughout California, enabling TILT to develop stronger customer relationships and deliver Jupiter products to B2B customers more quickly than ever before.

TILT acquired Jupiter in early 2019 to further expand its technology ecosystem and B2B reach across the supply chain. Through this acquisition, Jupiter has accelerated its growth with additional distribution opportunities leveraging TILT’s software, logistics and supply chain services provided by Blackbird Logistics (“Blackbird”) and Baker Technologies, Inc. (“Baker”). The integration of TILT’s operations and software solutions, combined with its robust distribution services allows Jupiter to provide support to its more than 640 customers in California with just-in-time inventory fulfillment and services.

“At TILT our vision is to help cannabis businesses better serve their customers and patients by providing them the tools to communicate, operate, and scale with a greater degree of efficiency,” said Alex Coleman, Chief Executive Officer of TILT Holdings. “Through Jupiter’s expansion with Blackbird and Baker, Jupiter customers benefit from partnered solutions and shared expertise pivotal for success in the global cannabis economy. The continued integration of our businesses is driving cross-selling opportunities that deliver more value to our customers and increased revenue opportunities for TILT.”

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