TILT Signs Second Amendment for its White Haven, Pennsylvania Facility Purchase and Sale Agreement

Rhea-AI Summary

TILT Holdings has announced a second amendment to its agreement to sell the White Haven, Pennsylvania facility to Innovative Industrial Properties. The extension allows both parties to conclude the transaction by September 30, 2022, due to delays in receiving necessary third-party diligence items such as title and environmental reports. TILT has operated the 40,000 square-foot facility since January 2019 for cultivation and processing purposes. The firm emphasizes that this extension should provide adequate time to finalize the necessary documentation for the sale.

Positive

• Extension of the due diligence period until September 30, 2022, allows more time for completion of the transaction.
• The White Haven facility has been operational since January 2019, indicating a history of business continuity.

Negative

• Delays in obtaining third-party diligence items could raise concerns regarding the transaction's timeline and execution.

PHOENIX, June 20, 2022 (GLOBE NEWSWIRE) -- TILT Holdings Inc. (“TILT" or the “Company”) (NEO:TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development, and retail, has signed a second amendment (the “Amendment”) to its previously announced definitive agreement to sell its White Haven, Pennsylvania facility (the “Purchase Agreement”). The Amendment allows TILT and Innovative Industrial Properties, Inc. (“IIPR”) to extend the end of the investigational period of the transaction contemplated to a date that is on or before September 30, 2022. The parties continue to await receipt of standard third-party diligence items that have taken longer than expected to obtain, including both complete title and environmental reports. Both parties believe that extending the diligence completion period to the end of September should provide more than sufficient time to receive all outstanding materials and complete the necessary paperwork allowing the transaction to close.

Since its acquisition in January 2019, the Company has operated the White Haven facility, located at 411 Susquehanna Street, and comprised of an approximately 40,000 square-foot building that includes cultivation, processing, and a product manufacturing lab, as Standard Farms LLC. More information is available in the Company’s original press release, issued January 28, 2019.

About TILT
TILT helps cannabis businesses build brands. Through a portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across 37 states in the U.S., as well as Canada, Israel, Mexico, South America and the European Union. TILT’s core businesses include Jupiter Research LLC, a wholly-owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing; and cannabis operations, Commonwealth Alternative Care, Inc. in Massachusetts, Standard Farms LLC in Pennsylvania, Standard Farms Ohio, LLC in Ohio, and its partnership with the Shinnecock Indian Nation in New York. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.

Instagram: @tiltholdings
Twitter: @TILT_Holdings

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, anticipated closing of the Purchase Agreement and estimated timing thereof, expected receipt of the outstanding diligence items, 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, operations, expansions 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, the ability of TILT to expand its operations 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 it will 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.

For additional information regarding forward-looking statements and their related risks, please refer to the “Risk Factors and Uncertainties” section in the Annual Information Form of the Company for the year ended on December 31, 2021, which is available on the Company’s SEDAR profile at www.sedar.com.

Company Contact:
Lynn Ricci, VP of Investor Relations & Corporate Communications
TILT Holdings Inc.
lricci@tiltholdings.com

Investor Relations Contact:
Sean Mansouri, CFA
Elevate IR
TILT@elevate-ir.com
720.330.2829

Media Contact:
Juliet Fairbrother
MATTIO Communications
juliet@mattio.com
631.338.5343

FAQ

What is the latest update on TILT Holdings' facility sale?

TILT Holdings has extended the due diligence period for its facility sale to Innovative Industrial Properties until September 30, 2022, due to delays in receiving required reports.

What is the significance of the second amendment in TILT Holdings' sale agreement?

The second amendment allows TILT and Innovative Industrial Properties to finalize the transaction by extending the investigational period, ensuring both parties have time to complete necessary paperwork.

What challenges is TILT Holdings facing with its facility sale?

TILT Holdings is facing delays in obtaining third-party diligence items, including title and environmental reports, which are necessary to complete the sale.

How long has TILT Holdings operated the White Haven facility?

TILT Holdings has operated the White Haven facility since January 2019.

What type of facility is being sold by TILT Holdings?

The facility being sold is a 40,000 square-foot building used for cultivation, processing, and manufacturing of cannabis products.