Tilt Holdings (CSE: TILT) revealed this morning that the company had minor production issues associated with the coronavirus outbreak that occurred last month in China. While the company was not specific, it identified that its Jupiter Research subsidiary is “back online” following Chinese New Year and “minor delays” related to the novel coronavirus.
The company revealed that it still has inventory remaining at its Phoenix, Arizona warehouse from which it is fulfilling customer orders. The company did note that the coronavirus outbreak caused production delays for the firm at their Shenzhen factory, however the factory has now been operational since February 17.
Each year, Jupiter strategically forecasts inventory positions for the Chinese New Year holiday and beyond, which aims to navigate our customers’ needs when production is halted for a variety of reasons. With product on hand stateside, our sales team has been actively receiving orders and fulfilling customer requests, along with our in-house print operations increasing capacity for domestic fulfillment. The Coronavirus outbreak in China has caused production delays across all industries, including ours, which produce products in Shenzhen and other manufacturing hubs along the China coast. Jupiter’s customer’s orders are being produced and shipped, which shows progress our manufacturers and Asian operations team have made.
Mark Scatterday, CEO of TILT
The company then went on to indicate that their factory in China is ISO 9001 certified, and maintains advanced protocols for cleanliness which include clean-room and gowning procedures. Raw materials also undergo a UV treatment, while antiseptic is currently being used in several stages of the production cycle to ensure product is sterile.
Shipments from the factory are now expected to be enroute. It is believed that no delay stateside was seen by customers of Jupiter despite the production delay.
Tilt Holdings last traded at $0.24 on the CSE.
Information for this briefing was found via Sedar and Tilt Holdings. 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.
