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TILT Reaches Agreement with Massachusetts Cannabis Control Commission Today 7:30 AM ET (GlobeNewswire)Print
TILT Holdings Inc. ("TILT" or the "Company") (CSE: TILT) (OTCQX: TLLTF), a provider of business solutions to the global cannabis industry that includes inhalation technologies, cultivation, manufacturing, processing, brand development and retail, announced it has reached an agreement with the Massachusetts Cannabis Control Commission ("CCC") resolving concerns of the CCC and clearing the path for provisional licensure for the retail sale of adult-use and medical cannabis in Massachusetts.
"We worked diligently with the Cannabis Control Commission to resolve the investigation that has stalled our remaining state licenses for the past two years," said Gary Santo, CEO of TILT. "We appreciate the time, effort and professionalism afforded to TILT by the CCC staff and are thrilled to have come to an amicable resolution with the Commission. Since joining the TILT team, I have made it a point to reinforce our focus on building a culture of compliance and have taken steps to build out our compliance team across the organization, making key hires that reflect both depth of industry knowledge and integrity in processes. The conclusion of this investigation marks the turning of a page for TILT and we look forward to serving many new patients and customers in our communities later this year."
With today's decision, TILT has fully resolved the dispute regarding certain agreements entered into by the original management team of TILT with other license applicants. In February, TILT terminated all remaining contractual relationships between the Company and prospective applicants. At yesterday's meeting of the CCC, the commissioners ratified a stipulated agreement resolving the related investigation pursuant to which TILT has agreed to make a $275,000 payment to the CCC Marijuana Regulation Fund.
In light of the CCC's decisions, TILT is now positioned to complete the licensing process and increase its retail footprint in Massachusetts with the opening of two additional dispensaries in Cambridge and Brockton following final inspection and approval by the Commission. Both facilities are fully built out.
TILT Holdings Inc. ("TILT" or the "Company") (CSE: TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, announced that it has entered into an exclusive agreement (the "Agreement") to manufacture, package and distribute select products by Old Pal, a Los Angeles-based lifestyle cannabis company. Per the Agreement, TILT's subsidiary, Commonwealth Alternative Care ("CAC") , will bring Old Pal into the Company's full-service wholesale manufacturing, packaging and distribution platform in Massachusetts.
Old Pal is one of the most recognizable and top-selling brands in the cannabis lifestyle space, focused on providing value to consumers through quality products and trusted consistency. CAC will be launching Old Pal's classic Ready to Roll five gram pre-ground pouches and one gram 510 Oil Cartridges, provided by TILT subsidiary, Jupiter Research LLC. Additionally, Old Pal will introduce a new THC-infused classic brownie edible designed in collaboration with CAC's award-winning edibles kitchen. Product details include:
"As we continue to develop a complementary portfolio of well-known quality brands, Old Pal was a natural fit, as we long admired their ability to deliver exceptional cannabis products to consumers at a fantastic price point," said TILT President Gary Santo. "We are proud to add Old Pal to our growing roster of partners and as we continue to expand our reach in Massachusetts, Pennsylvania and Ohio, we believe these brand relationships will help support our long-term profitability and success in our dynamic, growing markets."
Old Pal Co-Founder and CEO Rusty Wilenkin added, "Our mission is unwavering when it comes to bringing high quality cannabis to consumers at accessible prices. As we scale our business, our team has worked hard to identify like-minded partners with established manufacturing, packaging and distribution platforms -- and TILT was a clear-cut choice for us."
To learn more about TILT and Old Pal, visit www.tiltholdings.com and www.oldpal.com
TILT Holdings Heading in a New, More Focused Direction
A Q&A interview with the vertically integrated company’s newest CEO and COO.
March 6, 2020 Brian MacIver
Business and finance Compliance Distribution Interviews & Opinion Medical Cannabis On Feb. 19, TILT Holdings’ board of governors officially appointed Mark Scatterday as CEO, removing the “interim” from his title, and confirmed Tim Conder as the company’s newest president and COO. The duo both joined TILT in 2019 through acquisitions made by the holding company—Scatterday is the founder of Jupiter Research, a vape technology manufacturer, and Conder is the founder of Blackbird Logistics, a cannabis technology company developing distribution, delivery and customer service software. With their new titles confirmed, Scatterday and Conder hope to make TILT profitable by refocusing on the company’s strengths.
In this Q&A, the executives share the dynamics of co-running a company, what the future holds for its cultivation and retail assets, tips for cultivators and more.
(Editor’s note: This interview has been edited for length, style and clarity.)
CBT: How will the executive responsibilities be divvied up between both of you? Mark Scatterday: We're really not operating a whole lot differently since I nominated Tim as my chief operating officer. I believe that was back in July of 2019. I've been interim CEO since May 10 for TILT Holdings. I was a former founder and CEO of Jupiter Research. We were acquired in January of 2019 then I stepped into the interim CEO role in May of 2019. In July of 2019, Tim stepped into the role as my chief operating officer and Tim and I have been working hand in hand with the refocus of TILT Holdings: cutting costs, driving revenue and just restructuring the company, so to speak. Just really focusing on some foundational and business principles: driving revenues, focusing on bottom line profits, cutting cost and the unnecessary spending and making sure there is proper allocation of capital.
With the board’s confidence I stepped into the role as permanent CEO. Tim and I have demonstrated that we've worked extremely well together, and I wanted him to give Tim a little bit more responsibility on the day to day and authority and therefore he is now president of a TILT Holdings. But as far as how we've been operating, anything different today than we've been operating in the last seven months, not a whole lot of difference.
Tim Conder: One of the best things about our acquisition and now working at TILT from my perspective has been working alongside Mark and his team. The two of us have been in lockstep for the past seven months. This is just a continuation and maybe crystallization of how we've been operating up to this point.
Like Mark said, we’re excited about the work that we've been able to do together and continue and we’re really, really happy that the board has confidence in both of us to continue moving forward. And from my perspective, I’m just excited to continue to learn from Mark and how he's built his business and really leverage those fundamentals throughout TILT.
CBT: In the press release that was sent out about your confirmed positions, it was also mentioned that TILT is foregoing its pursuit of Canadian cultivation licenses. Why is that? TC: Our core focus is going to be on innovation and technology and the assets that we have today that really embody that core focus, Jupiter and Blackbird. That doesn't mean that we're abandoning these other assets. What it means is that we will not expand our reach into cultivation, retail and production. Rather, we may look for opportunities for divestiture of these assets or we'll continue to just leverage the cash that these assets make to grow the technology and innovation.
READ MORE: How Briteside Technology Drives TILT Holdings' Delivery Strategy
We want to be cognizant of the teams and operations that we've built over the past 17 months and of the success that they've had, but also be clear with the market and clear with the industry about what our focus is going to be moving forward. And that really goes for Canada and the U.S.
We're continuing the licensing process [in Canada] and looking at opportunities as to what to do with all of the licenses either in Canada or in the U.S. as it relates our new core focus.
CBT: We’ve been seeing a lot of change and shakeups at the executive level in the cannabis industry. What does that say about the current state of the marketplace? TC: I think at a high level, it says that the industry is nascent, which we all knew. Anyone that has started a business knows that it's pretty infrequent that the way that you start a business is the way that that business continues to perpetuity. There oftentimes changes that need to be made in leadership or changes that need to be made in strategies or even changes that may take place on the board. And that shouldn't necessarily be viewed as a bad thing. It's businesses making real time adjustments to make sure that they're successful.
I think a scarier thing would be if nobody was making any changes. Because it's just not a real reality that everybody has the perfect team on day one.
CBT: Why do you think refocusing on technology is a better market for you versus expanding your cultivation or retail footprint? TC: That's where our expertise is, right? Mark has built one of the largest cannabis vaporization technology companies in the world. And Blackbird is still the largest infrastructure and technology company in cannabis. That's where our knowledge base is, so that's what we want to focus on.
MS: We feel MSO [multi-state operator] market is pretty crowded and if we can be that support and that foundational technology to support all the MSOs and hold the category globally through technology and technology assets, you know, it's really what we feel is a great model moving forward.
CBT: With that perspective, where do you see the next bottleneck or pinch point coming? TC: There's new hurdles that present themselves constantly. The vape crisis was a really good example of an unknown offense that is really going to change the way that operators do business. I think it's great to align focus on safety and ensuring that the consumer is having a safe experience.
The hurdles really are unknown, but from my perspective, the largest choke point will be federal legalization in the U.S. and what kind of effect that will have on the industry.
CBT: How does operating as a vertically integrated company with assets in cultivation, retail and in the technology sector impact how you manage your business? TC: [Having plant-touching assets] was a function of how the business was initially formed. But I think one benefit that we see is that, from a technology and innovation standpoint, we truly understand the pain points of our customers.
When we were initially acquired by TILT, both Jupiter and Blackbird were really worried about the perception from our plant-touching customers that we were now competitors. And that's definitely not been the case. I think rather than being competitive, we are really learning what it means to be an operator in the cannabis space. You know, Blackbird has held cannabis distribution licenses in both Nevada and California, so we understood what some of the hurdles were in obtaining and maintaining cannabis licenses. But what we've been able to learn by operating cultivation, manufacturing and retail assets over the past year or so or you know has been a huge advantage to us in servicing our customers that are operators in the cannabis space.
MS: And as far as Jupiter goes, we have always focused on being our customers technology partner. [Being in the plant-touching sector] just furthers our ability to be the best partner we can. Our customer success is our success.
CBT: What tips can you offer cannabis cultivators? TC: Diversifying strain offerings is great, but still high-yield, high-potency strains are continuing to sell the best.
MS: It's really focusing on what you do best and really being the best in your area of expertise and really focusing on that and providing the customer a great experience. So, don't compromise quality in every aspect of your business.
I appreciate that TILT Holdings does not go overboard on spending for company investor promotions. I am your one-man bandleader via the Internet. TILT is my number one cannabis holding. It appears you may have a shot at a profitable quarter next time you report. It will be interesting how the US government will sort out the shipping restrictions in lumping tobacco in with cannabis. That and the SAFE banking act. If we can get those 2 items straightened out, blue skies ahead.
TILT Holdings Announces Amendment and Repayment of Blackbird Note Receivable
BY GlobeNewswire 06/08/2021
TILT Holdings Inc. ( TLLTF ) (“TILT" or the “Company”) (CSE: TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, announced today that Baker Technologies, Inc. (“Baker”), an indirect wholly owned subsidiary of TILT, has agreed to amend and receive payment for its secured convertible promissory note (the “Blackbird Note”) that was previously issued in connection with the sale by Baker of all of the membership interests of Yaris Acquisition, LLC (dba Blackbird) to Slam Dunk, LLC (“Slam Dunk”) on December 1, 2020 (the "Blackbird Sale").
The Blackbird Note receivable is expected to be paid at its $7.9 million fair value calculated as of March 31, 2021, as disclosed in the Company’s interim financial statements filed on SEDAR on May 25, 2021. Baker has agreed to receive payment through a series of transactions (collectively, the “Transactions”) with Slam Dunk and HERBL, Inc. (“HERBL”), a California corporation and arm’s length third party to both TILT and Slam Dunk, pursuant to which:
Blackbird Logistics Corporation, a Nevada corporation and wholly owned subsidiary of HERBL, assumed from Slam Dunk the obligation to repay the Blackbird Note to Baker;
the Blackbird Note will be fully repaid through the payment to Baker of US $1,500,000 in cash and the issuance to Baker of a certain number of shares of common stock of HERBL (such number of shares subject to adjustment in certain circumstances) (the “HERBL Shares”) based on HERBL’s enterprise value. Baker will enter into customary investor and stockholder agreements related to its ownership of the HERBL Shares. If the cash payment is not made to Baker, or the HERBL Shares are not issued to Baker, such that the debt obligations under the Blackbird Note are not fully repaid on or before June 11, 2021, Slam Dunk will remain liable for all of its original debt obligations to Baker under the Blackbird Note; and
HERBL has agreed to give a guarantee to Baker of Slam Dunk’s obligations to Baker under the securities purchase agreement, dated November 18, 2020, entered into by Baker and Slam Dunk in connection with the Blackbird Sale.
All of the Transactions are expected to be completed on or before June 11, 2021.
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 36 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 and Standard Farms Ohio, LLC in Ohio. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.
It could be trading at 1.00+ , and it'd still be undervalued, imo.
One of the biggest dislocations in the space since march 2020 lows, hands down.
Wouldn't be surprised to see it cut in half over the summer either.
High 20s or low 30s , maybe.
Obviously, there'd be little to no justification for such levels, but summer doldrums in the past have proven to be brutal, especially w/ otc/cse listed pubcos.
Hopefully the seasonal trend is bucked in 2021, but I'm leaning towards it being a low probability event.
I dont think it matters w/ a longer term view, but history says to be cautious thru the summer.
I am not hanging my hat on ANY new legislation as the Cannabis business in the U.S. is doing very well, thank you.
Although sitting on their thumbs in regards to the SAFE banking act is dangerous for everyone involved in the business. (See delivery drivers).
I am waiting for anyone to run a decent story on TILT. Fair value I see at $0.75, at the very least, considering revenue, adjusted EBITDA, shares outstanding and current share price.
There's no momo in pot stocks during the summer, or it's very unusual.
btw, I agree...Tilt deserves a lot more attn, but...
Most fundamentals go out the window during the summer time, unless it's bad fundamentals...then it'll dump, but that's not the case w/ tilt.
I've been trying to share this w/ people for two months now.
Plan accordingly & don't be discouraged. Wait to buy dips, and save some ammo for late/late Aug.
The only way we see upside thru this summer is "action" from US legislation on cannabis.
Rumors of action before the end of March, April & May have all been BS. We've heard more rumors of "action" before summer recess, but I'm doubtful on that too.
Political leaders are all full of sh*t on both sides of the isle. They're all full of it! I'll believe it when I see it!
Until then, I plan to stick to high probability outcomes.
Best days to buy pot stocks are last few days in AUG and last few days of the year.
Tilt has 300%-500%+ upside potential in the fall / winter & start of 2022, imo.
Neither could Hollister (HSTRF)until today. 2020 total revs for the entire year were 30 mill but Q1 2021 came out today with 23 mill in first qtr. Positive cash flow. Low debt. 50% Insider ownership. Today the train left the station. Up 34.09% on 522% avg daily volume. BOOM.
Arizona rec sales only contributed 2/3 of the quarter. Wait until Q2 numbers are posted. BOOM BOOM.
TILT Holdings Resets With a Unique B2B Cannabis Business Model
May 24, 2021 at 11:54 am New Cannabis Ventures Exclusive article by Carrie Pallardy
TILT Holdings (CSE: TILT) (OTCQB: TLLTF) has been through a few different iterations since its inception. Now, President Gary Santo is preparing to step into the CEO role, effective June 1, and guide the company through a growth phase. Santo spoke with New Cannabis Ventures about TILT’s leadership change, the current business model and how the company will grow with federal legalization in mind. The audio of the entire conversation is available at the end of this written summary.
The New CEO
Santo has worked in finance for more than two decades. Every company he has worked with undergone some kind of significant transformation, whether in the form of going public or M&A followed by a delisting and relisting. When he looked at cannabis, Santo saw the need for that kind of transformational experience. He saw TILT getting back to basics to find a business model that works. With a stabilized foundation, the company is ready for growth, and Santo is prepared to help.
He joined the company as SVP of IR and Capital Markets. Current CEO Mark Scatterday helped to bring the company where it is today, while former COO and President Tim Conder stabilized the company’s foundation, according to Santo. Now, TILT is ready to start talking about growth, and that is where Santo wants to focus.
TILT has been funding itself with cash flow from operations for the past two years, but its stock is trading at a discount compared to other operators in the space, according to Santo. He recognizes that a change in strategy and management is going to affect market perception, and he wants to demonstrate the company’s ability to execute on its strategy and deliver shareholder value.
While Santo will be assuming the CEO role, he won’t be alone in helping TILT to grow. Scatterday will be staying on as Chairman of the Board, as well as lending a hand in R&D efforts. Joel Milton serves as SVP of Business Development, leading growth and sales initiatives. Foster Boone is leading the company’s plant-touching business. Roseann Valencia-Fernandez recently started as Head of Marketing, while Cristina De Tomasi, who worked with Santo at Columbia Care, serves as Head of Corporate Development.
The Plant-Touching Business
TILT has plant-touching operations in Massachusetts, Pennsylvania and Ohio. The company is largely focused on the B2B play in this business segment, as it is through the technology side of its business. It is vertically integrated in Massachusetts out of necessity. TILT has a 100,000-square-foot facility with cultivation, processing and manufacturing. It has a dispensary, as well as two additional fully built-out stores, and sells into 50 percent of the dispensaries in the state, according to Santo.
The wholesale market in Massachusetts allows the company to sell cannabis at a premium price of $3,500 to $4,000 per pound, according to Santo. The TILT team is aware this won’t last forever, but it is taking advantage of the current market dynamics.
In Pennsylvania, TILT has a 35,000-square-foot cultivation and manufacturing facility. The company sells into 95 percent of the dispensaries in the state.
TILT’s Standard Farms Facility in Pennsylvania Ohio is TILT’s newest market. The company took ownership of a 10,000-square-foot manufacturing facility earlier this year and has the ability to sell into about 52 dispensaries in this market.
TILT’s plant-touching business has gross margins of 50 to 60 percent and EBITDA margins of 30 to 40 percent, according to Santo.
The Technology Business
Jupiter, TILT’s B2B inhalation technology side of the business, sells products to approximately 700 different brands, MSOs and LPs. This business segment represents about 60 percent of the company’s top-line revenue and 50 percent of its bottom-line profit. Jupiter partners with the company that manufactures the CCELL brand of vaporization technology in China. Through this partnership, Jupiter does R&D, warranty work and distributes CCELL technology.
Jupiter is TILT’s Vaporization Technology Business Unit. Jupiter has 25 percent gross margins and EBITDA margins in the low to mid-teens, according to Santo.
Brands and Federal Legalization
TILT is betting on brands as the future of the cannabis industry. The company has its own brands, but it is focusing on partnering with leading brands. For example, the company partnered with Her Highness in Massachusetts, opening the door to half of the state’s dispensaries.
The company will look to partner with leading CPG brands coming out of markets like California. As it does this, the company will also have the opportunity to leverage the 700 relationships it has built on the Jupiter side of its business. This focus will create a more balanced business model, according to Santo.
This model will work for TILT in the current market without federal legalization, and Santo sees it still working whenever legalization does come to pass.
There is plenty of speculation that federal legalization will commoditize cannabis cultivation, and Santo agrees to some extent. He sees common strains and high-yield plants becoming commoditized, leaving room for specialty, craft grows like TILT’s.
When it comes to retail, the COVID-19 pandemic has driven a major shift in consumer behavior. People are now used to online shopping and curbside pickup. With legalization, Santo expects to see more online shopping and big-box stores in the cannabis industry.
TILT will be focused on owning the specialty supply chain: specialty grow, high-end manufacturing and distribution. Regardless of how the product is sold, whether in a big box store, online or in a dispensary, TILT aims to have a place in the industry.
TILT Focuses Primarily on Cultivation, Manufacturing and Distribution, Rather than Retail.
Expanding to New Markets
The U.S. is TILT’s main focus for expansion, but it will not be looking to spread its footprint too thin. Rather, the company will look to add states close to its current footprint, looking at markets like New York, New Jersey, Connecticut and Rhode Island. Creating that kind of footprint could appeal to California brands looking to come to the East Coast.
TILT is also considering other states further from its current footprint, like Texas and Michigan, but any expansion will be intentional and focused on wholesale and distribution.
M&A is also on the company’s radar, but any potential deals will need to be the right fit. TILT does not want to do any M&A that would turn it into a competitor with its own customers. On the vape side, the company could find deals to support further innovation, different form factors and other price points.
Partnerships will be TILT’s main path for international expansion. For example, the company has a partnership with Kanabo, a company based in Israel. The company received medical certification to sell one of TILT’s proprietary inhalation devices in Israel, and it is working on obtaining medical certification to sell the device through its network in the EU.
Balance Sheet Insight
TILT has a fairly clean balance sheet, according to Santo. The company has approximately $75 million in debt split between a junior and a senior note. The first note comes due in November of next year, and both are at 8 percent.
As a company with positive cash flow, Santo sees some potentially interesting opportunities in the capital markets. TILT could potentially refinance its current stack or set up some kind of asset-backed line, according to Santo.
From its third to fourth quarters, TILT nearly doubled its cash position, despite the fourth quarter being its most capital consumptive. The company does a significant amount of preordering of vape hardware in preparation for Chinese New Year. The growth in cash position demonstrates the strength of the company’s business lines, according to Santo.
TILT is fully funded for its 2021 guidance. It does not need to complete any major CapEx, unless there was a compelling reason to come out to the market, according to Santo.
2021 Outlook
The company is projecting $205 to $210 million in revenue for 2021,with adjusted EBITDA of $30-32 million. On the Jupiter side of the business, those numbers are being driven by a return to normal buying patterns. In 2019 and 2020, the industry experienced the vaping crisis. Just as that was beginning to resolve, the COVID-19 pandemic began. The company expects vaporization to grow in 2021.
On the plant-touching side of the business, TILT has doubled its canopy size in Massachusetts, and it expects its retail stores to open in the second half of the year. The company has also become more efficient. When TILT was focused on staying afloat rather than growing, it was producing more biomass in Pennsylvania that it could process. Now, it has more extraction capability than what it can produce in biomass, according to Santo.
Efficiency is a big theme for the company’s plant-touching business. TILT tracks harvest efficiency, margins and yields. Its Pennsylvania operation just had record flower last month. The company approaches its cultivation intentionally: preselling its rooms and planting, harvesting and shipping product on a schedule.
While the company does operate as an MSO, it also has the steady support of its Jupiter business. Jupiter, a predictable and profitable operation, gives the company $130 to $150 million in top-line revenue.
TILT has created a strategy and a story that is easier for people to understand, and now, the company has to execute on that strategy, according to Santo.
Well, my thoughts are what I see in the pr I like. I’m new to this one however so I will take the time to go over the filings and get a better feel for this one.
Haven't looked at sedar, but headlines look good at first glance.
The stabilization & turnaround of Tilt is beginning to take shape.
Love the low market cap.
Plenty of value not being recognized yet, imo...especially w/ Gary in the driver seat.
Is it ready to go now, will it take a few more qtrs or go after summer doldrums? I'm thinking after summer, but there's def a case to be made for now too?
Record Q1 Revenue of $46.8 Million up 15% YoY and 11% QoQ
Record Adjusted EBITDA of $6.2 Million up 28% YoY and 36% QoQ
Reiterates 2021 Guidance of Revenue Between $205 - $210 Million and Adjusted EBITDA Between $30 -$32 Million
PHOENIX, May 25, 2021 (GLOBE NEWSWIRE) -- TILT Holdings Inc. (“TILT" or the “Company”) (CSE: TILT) (OTCQX: TLLTF), a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, reported its financial and operating results for the three-months ended March 31, 2021. All financial information is provided in U.S. dollars unless otherwise indicated.
“Our first quarter results reflect another period of strong execution as we continue to build an integrated B2B cannabis company that partners with leading MSOs, LPs and cannabis brands,” said Gary Santo, President of TILT. “The results of that execution and our team’s hard work show up where it matters—in the numbers. We generated double-digit revenue growth and reduced cash operating costs on an absolute basis, all from the same asset base. We are more efficient operators today and we are just getting started. Over the coming quarters, we expect to benefit from our recently added cultivation capacity and secure additional brand partners as we expand our portfolio of products and services for our B2B partners and the industry at large.”
Q1 2021 Financial Summary (vs. Q1 2020, where applicable)
Revenue increased 15% to $46.8 million compared to $40.6 million driven by growth in both cannabis and inhalation and accessory revenue. Cannabis revenue increased 45% to $11.7 million and inhalation and accessory revenue increased 8% to $35.1 million. Gross profit before fair value adjustments increased 7% to $13.5 million or 29% of revenue, compared to $12.6 million or 31% of revenue. Gross margins were impacted by timing of capacity expansions in Massachusetts. Operating expenses less non-cash adjustments for stock compensation, depreciation/ amortization and one-time charges was $7.9 million, a 10% decrease from $8.8 million. As a percentage of revenue, operating expenses totaled 17% compared to 22%. Adjusted EBITDA increased 28% to $6.2 million compared to $4.9 million. As a percentage of revenue, Adjusted EBITDA totaled 13.2% compared to 12%. At March 31, 2021, cash and cash equivalents increased 21% to $9.0 million compared to $7.4 million at December 31, 2020. Q1 2021 Operational Highlights
Generated record accessory orders during the quarter. Generated record flower sales for March in Pennsylvania, where cultivation yields are up 16% over the last five months. Launched three Her Highness NYC branded products in Massachusetts within 30 days of signing manufacturing and distribution contract. Completed expansion of additional grow rooms in Massachusetts, which more than doubles cultivation capacity in the state to 56,500 ft2. Taunton, MA medical dispensary reported record monthly revenue in March. Increased footprint in the northeast with completed acquisition of Standard Farms Ohio LLC, which brings a 9,600 ft2 processing and CO2 extraction facility. Operational Highlights Subsequent to Quarter End
President Gary Santo to succeed Mark Scatterday as CEO of TILT Holdings, effective June 1, 2021. Mark Scatterday to continue on as Chairman of the Board. Approved for adult-use license in Brockton, Massachusetts; state license still pending. Announced partnership with Airo Brands, a multi-state CPG company focused on proprietary inhalation products to launch products in Pennsylvania. Earnings Call and Webcast
The Company will host a webcast at 5:00 PM ET today to discuss financial and operational results for the reported quarter.
The live webcast may be accessed from the Events and Presentations menu in the Investor Relations section of the Company’s website at http://public.viavid.com/index.php?id=144960 or to access the conference call via telephone, please dial, 1-877-705-6003. Please register at least 10 minutes prior to the scheduled start to download and install any necessary audio software.
A replay of the webcast will be available in the Past Events section of the Company’s Investor Relations website approximately 2 hours after the live event and will be archived for 30 days.
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 36 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 and Standard Farms Ohio, LLC in Ohio. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.
Will be interesting to see how the P/S, which is currently outstanding hold up along with what they did with inventory. It is a interesting company John.
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