As reported by Marijuana Business Daily, four leading cannabis companies from the United States and Canada – Baker Technologies of Denver, Colorado, Briteside of Bend, Oregon, Sea Hunter of Boston, Massachusetts, and Sante Veritas Therapeutics of Vancouver, British Columbia – have announced their intent to join forces and create a comprehensive, multinational business entity. The announcement is the latest of its kind as more U.S. states legalize the herb and Canada readies for a wide-open adult-use market expected to be in full swing by the end of the year.
The four companies, all leaders in the marijuana industry on their own, released a press release on May 15 to announce a binding letter of intent (the "LOI") to merge and form the world's first fully-integrated corporation under the name TILIT Holdings Inc., and said the firms have collectively raised more than $150 million in capital and securities. The cannabis conglomerate will aim to fully represent all facets of the burgeoning cannabis industry, with specialties in technology, cultivation, and consumer support services. Terms of the merger agreement weren't released, but TILT is forecasting revenue of $70 million in 2018 and more than $200 million by the end of 2019, and the company intends to list on the Canadian Stock Exchange.
The firms say TILT will use the capital it has raised for increasing its acquisitions and growing its infrastructure, and Alex Coleman, TILT’s CEO, told Marijuana Business Daily that the firm wants to operate in every state that legalizes marijuana, saying: “Our platform will allow us to get into new markets and grow at a lower cost in less time. The only variable is time.”
A bit of background on the companies merging to form TILT:
- Baker Technologies offers cannabis products found in more than 1,000 dispensaries in 24 American states as well as throughout Canada. It also offers online ordering, a customer loyalty program, and consumer analytics.
- Briteside is a manufacturer of prefabricated modular cultivation units, and it provides home delivery- and subscription-based services.
- Sante Veritas Therapeutics is working to obtain its cannabis production license, and it just completed a build-out of its first marijuana manufacturing facility in Powell River, British Columbia.
- Sea Hunter invests in and operates state-licensed dispensaries in three American states.
TILT is projected to have more than 500 employees by the end of the first quarter in 2019, with primary offices to be located in Boston, Denver, and Toronto. Leadership, aside from Coleman, will include Baker CEO Joel Milton, who will be the president overseeing technology, Sea Hunter managing partner Robert Leidy, who will be the president overseeing consumer-related operations, and Briteside CEO Justin Junda, who will be the chief visionary officer.