CanadaEarningsUSTILT Holdings announces positive EBITDA of US$2.7 million

The best way to ride the green wave is to service it
Michelle Gamage Michelle GamageNovember 21, 20194 min

Like the shopkeepers who made fortunes selling their wares to surveyors during the Gold Rush, TILT Holdings Inc. (CSE: TILT) (OTCQB: TLLTF) demonstrates that one way to strike it rich in the green rush is to service it.

The cannabis and technology company posted its first positive adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of US$2.7 million Wednesday for the period ended Sept. 30, 2019. That’s a dramatic jump from the previous quarter’s negative EBITDA of US$4 million.

TILT bundles services for cannabis companies and brings together six businesses to service over 2,000 cannabis brands and retailers worldwide in 33 American states, Canada, Israel, Mexico, South America and the European Union. It offers everything from vape development to shipping software.

The company brought in revenues of US$46.1 million, up 18 per cent from $US39 million in the previous quarter, and reported a net income of US$26.1 million, up from a loss of US$48.9 million.

“We have successfully completed the first and most important phase of our turnaround that resulted in three major achievements,” interim CEO Mark Scatterday said in a statement.

“We secured attractive financing that solidified our foundation for scalable growth, we negotiated the forfeiture of legacy stock options from founders that put undue pressure on our balance sheet and most importantly, we reported our first-ever positive adjusted EBITDA quarter.”

TILT announces additional financing 

The closing of Wednesday’s US$25.6 million of a US$35 million round of shareholder-backed financing received a boost from an additional private placement of $US10.2 million in senior-secured notes. This boosted the company’s financing to a total of US$35.8 million.

“The closing of this additional financing only further illustrates the positive momentum TILT is experiencing as an organization and the growing confidence the investment community has in our refocused business plan,” Scatterday said. “The fact that the financing was oversubscribed only further speaks to the positive sentiment major investors are feeling towards what we’re accomplishing at TILT.”

The company also announced appointing Mark Coleman and Jane Batzofin to its board as independent members.

TILT’s stock rose CA$0.10 following the positive Q3 report, to around CA$0.52 per share on the CSE.

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