TILT Acquires Cannabis Distribution Startup Blackbird and Medical Cannabis Operator Standard Farms
BOSTON--(BUSINESS WIRE)--TILT Holdings Inc. ("TILT" or the “Company”) (CSE:TILT), a vertically-integrated infrastructure and technology platform serving the cannabis industry, announced it has acquired two leading cannabis companies to expand its capabilities in the cultivation and logistics spaces. TILT has acquired Blackbird Holdings Corp. (“Blackbird”), a distribution company providing logistics operations and software solutions for each touchpoint in the cannabis supply chain. This announcement is the latest in a series of moves to expand TILT’s offerings for cannabis businesses and consumers. Today, TILT officially began trading on the Canadian Securities Exchange under the ticker symbol “TILT”.
“The Blackbird acquisition represents a major expansion of our operations and delivery capabilities for cannabis businesses,” said Alex Coleman, CEO of TILT. “Blackbird has built out an incredible offering of solutions focused on distribution and last-mile, direct-to-consumer delivery as well as software for wholesale and retail inventory management. That is an important element of our portfolio and we’re happy to welcome Blackbird to the TILT family.”
Blackbird works with more than 250 wholesale and retail cannabis operators in Nevada and California to transport an average of $30 million in wholesale cannabis products every 30 days. With involvement in 95% of the cannabis sold in Nevada, Blackbird plans to expand its capabilities in Massachusetts, Arizona and California. In addition to back-end delivery and operations solutions for cannabis dispensaries, Blackbird also includes a consumer marketplace for cannabis delivery and pick-up called BlackbirdGo. The marketplace, which is currently operational in California, connects dispensaries and brands with access to more than 95,000 legal consumers.
“We have an unwavering belief in our mission and vision and the team we have assembled to execute on both,” said Timothy Conder, CEO of Blackbird. “We are privileged to get to work in cannabis alongside such wonderful and talented operators and we recognize our debt to those that came before us. The TILT acquisition will allow us to increase the scale and scope of our execution.”
Founded in 2015 in Reno, Nevada, the company has grown to include more than 130 employees. More information about Blackbird can be found at https://www.myblackbird.com.
Consideration for the Blackbird acquisition consists of US$5M cash and US$45M in securities. The exchange rate between USD and CAD is calculated over the 5 days leading up to closing. Compressed shares of TILT will be issued as consideration at CAD$525, a deemed value of CAD$5.25 per common share based on 1 compressed share being convertible into 100 common shares of TILT. The outside date for the closing of the deal is January 31, 2019.
TILT is also releasing more details about the recently announced acquisition of Standard Farms.
Standard Farms is a multi-state medical cannabis operator focused on greenhouse cultivation and Co2 extraction. Standard Farms is in over 95% of the Pennsylvania's dispensaries and has shipped over 200,000 units of product.
The Standard Farms acquisition consists of US$12M cash and US$28M in securities, subject to reallocation of up to US$5M from cash to securities. The exchange rate between USD and CAD is calculated over the 5 days leading up to closing. Common shares of TILT will be issued as consideration at a value of CAD$5.25 per common share or the five day volume weighted average price of the common shares on the CSE leading up to the closing date, whichever is lower. Upon approval from local Pennsylvania regulatory authority, the outside date for the closing of the deal is March 31, 2019.
As one of the cannabis industry's most holistic platforms, TILT provides technology-driven products and services across every stage of the cannabis supply chain. More information about the company’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.