TILT Provides Standard Farms with US$3M Loan for Processing Operations in Ohio
ft. processing facility (the Facility) in Garfield Heights that will utilize technologies and Standard Operating Procedures based on current Good Manufacturing Practices.
TILT Holdings Inc. (“TILT” or the “Company”) (CSE: TILT) (OTCQB: SVVTF),
a leading provider of products and services to businesses operating in
the cannabis industry, announced today that the Company’s wholly-owned
subsidiary, Baker Technologies, Inc. (“Baker Technologies”), has closed
a loan (the “Loan”) to Standard Farms Ohio LLC (“Standard Farms”) for up
to US$3,000,000, which will allow the companies to work together in the
rapidly growing Ohio medical marijuana market.
Standard Farms is constructing a state-of-the-art 10,000 sq. ft.
processing facility (the “Facility”) in Garfield Heights that will
utilize technologies and Standard Operating Procedures based on current
Good Manufacturing Practices. Currently, Standard Farms holds a
provisional processor permit for the Facility, which it expects to be
operational in late 2019, subject to, among other things, the receipt of
a certificate of operation (the “Certificate of Operation”) from the
State of Ohio Department of Commerce. Utilizing expertise honed at its
Pennsylvania operations, Standard Farms anticipates providing clean and
pure medical marijuana products including proprietary vaporization
cartridges, capsules and tinctures.
The Loan is split into two tranches. The first tranche of US$1,000,000
was funded on closing and the remaining US$2,000,000 will be funded in
late 2019 subject to, among other things, Standard Farms’ receipt of the
Certificate of Operation. The Loan is secured by substantially all
assets of Standard Farms except its license and any marijuana products.
The proceeds of the Loan will be distributed to the holders of all of
the membership interests in Standard Farms, Bio Alpha Venture LLC
(“BAV”), and Goldrath Alpha Venture LLC (“GAV”), wholly owned companies
of Jonathon Goldrath and Peter Bio, respectively. Subject to receipt of
applicable regulatory approvals and the terms and conditions provided in
the agreement, GAV’s and BAV’s ownership interests in Standard Farms may
be transferred to Baker Technologies in exchange for the cancellation
and conversion of the outstanding principal amount of the loan.
“Ohio is a large and rapidly growing cannabis market and we look forward
to increasing our exposure to the Buckeye state through this
relationship,” said Alex Coleman, Chairman and CEO of TILT.
Ohio is set to become one of the largest limited licenses states as the
seventh most populous state in the United States (“U.S.”), with nearly
12 million residents. As of this month, 24,556 patients and 1,489
caregivers have completed registrations to purchase cannabis, the state
reported. According to Arcview Market Research, the Ohio cannabis market
is expected to grow to an estimated $290 million by 2022. TILT is
actively pursuing similar lending relationships with other operators in
Ohio to ensure adequate supply and finished product are available to
patients across the state.
“Our mission at Standard Farms is to provide our patients with
compassionate care, with the goal of helping them reach a better quality
of life,” said Kyle Olcott, Director of Formulation and Extraction for
Standard Farms. “We are very pleased to partner with TILT to provide an
exceptional experience to Ohioans and deliver on this mission.”
About TILT
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.
Forward-Looking Information
This news release contains forward-looking information based on
current expectations. Forward-looking information is provided for the
purpose of presenting information about management’s current
expectations and plans relating to the future and readers are cautioned
that such statements may not be appropriate for other purposes. Forward
looking information may include, without limitation, the receipt of the
Certificate of Operation by Standard Farms, the operational date of the
Facility, the expected growth of the Ohio cannabis market, the opinions
or beliefs of management, prospects, opportunities, priorities, targets,
goals, ongoing objectives, milestones, strategies and outlook of TILT,
and includes statements about, among other things, future developments,
the future operations, strengths and strategy of TILT. Generally,
forward looking information can be identified by the use of forward
looking terminology such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates” or “does not anticipate”, or “believes”, or variations of
such words and phrases or state that certain actions, events or results
“may”, “could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”. These statements should not be read as guarantees of future
performance or results. These statements are based upon certain material
factors, assumptions and analyses that were applied in drawing a
conclusion or making a forecast or projection, including TILT’s
experience and perceptions of historical trends, current conditions and
expected future developments, as well as other factors that are believed
to be reasonable in the circumstances.
Although such statements are based on management’s reasonable
assumptions at the date such statements are made, there can be no
assurance that they it be completed on the terms described above and
that such forward-looking information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such forward-looking information. Accordingly, readers
should not place undue reliance on the forward-looking information. TILT
assumes no responsibility to update or revise forward-looking
information to reflect new events or circumstances unless required by
applicable law.
By its nature, forward-looking information is subject to risks and
uncertainties, and there are a variety of material factors, many of
which are beyond the control of TILT, and that may cause actual outcomes
to differ materially from those discussed in the forward-looking
statements.
The CSE has neither approved nor disapproved the contents of this
news release.
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