Tilt Holdings Announces US$125 Million Financing at 79% Discount to IPO

Tilt Holdings Inc (CSE: TILT) announced a massive US$125 million dollar convertible note financing this morning, which it intends to use to develop its operations into profitability. The firm has set a minimum financing of US$50 million for the note, which can expand to $125 million at the companys discretion.

While Tilt Holdings was intentionally unclear on the price as a result of the equities downward spiral, it was noted that the convertible note would bear 8% interest of a period of 36 months, payable quarterly. The convertible price slated for the offering is referred to as “approximately 30% above the closing price on July 15”, with warrants at “approximately 50% premium to the closing price on July 15.” Based on the closing price of $0.84 on July 15, this puts convertible share pricing at roughly C$1.10, and warrants at C$1.26.

Tilt Holdings

Concurrent with Tilt Holdings initial listing in November 2018, the company had conducted a raise for US$119 million, with shares being sold at a price of C$5.25. The latest raise presents a 79% decrease over the price used for Tilt’s go public transaction.

The firm has indicated that funding from the convertible note will be used for several purposes, including,

  • Finance and Operations
    • Retire in full the Company’s U.S. $20 million Bridge Loan dated April 29, 2019 that bears interest at 18.75% per annum
    • Provide adequate cash for working capital needs to sustain and build long-term operations without fundraising concerns
  • Growth of Existing Businesses
    • Capitalizing on Jupiter’s leadership position, Jupiter will expedite its expansion throughout the United States and global markets by multiplying the sales force and distribution hubs. In addition, resources will be invested to accelerate Jupiter’s new exclusive product introductions and supporting the new product development/fundamental research center and laboratory
    • Continue wholesale distribution efforts throughout Massachusetts and position for retail openings in Brockton and Cambridge
  • Investor Relations
    • The new Financing Syndicate to work hand in hand with TILT leadership to ensure a new era of transparency, compliance and an independent board

Tilt management expects the financing to close in August. Tilt Holdings is currently trading at $0.98, up 16.67% on the day.


Information for this briefing was found via Sedar and Tilt Holdings Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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