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 definitive agreement (the “Purchase Agreement”) to exercise its purchase option for ownership of its Taunton, Massachusetts facility for a purchase price of approximately $13 million.
Operating since August 2018, the Company’s state-of-the-art Taunton facility, located at 30 Mozzone Boulevard, is comprised of a 100,000 square-foot building that includes cultivation, processing and a product manufacturing lab, as well as a 3,000 square-foot medical and adult-use dispensary.
“Massachusetts continues to serve as the flagship market for TILT as we operate two co-located adult-use and medical dispensaries, along with a purpose-built vertically integrated cultivation and processing facility in Taunton,” said Gary Santo, CEO of TILT. “Gaining full ownership of our operations campus in Taunton will provide us greater flexibility to expand cultivation, implement leading processing and manufacturing techniques and successfully position ourselves for the industry’s continued evolution towards a more traditional CPG model.”
Through its subsidiary, Commonwealth Alternative Care, Inc., the Company has entered into the Purchase Agreement with the current owner of the Taunton facility. The Company expects the transaction to close on March 31, 2022. The Company paid an initial deposit of $50,000 into escrow upon execution of the Purchase Agreement, and will pay an additional $150,000 deposit into escrow if the Company elects to proceed with its acquisition of the facility after its 45-day due diligence review. The Taunton facility is comprised of two condominium units (Unit A and Unit B). The Company has until March 15, 2022 under the Purchase Agreement to elect to purchase both Unit A and Unit B or solely Unit A. If the Company elects to purchase Unit A only, the purchase price shall be reduced to approximately $4.6 million.
Unless otherwise indicated, all dollar amounts in this news release are expressed in U.S. dollars.
