CAMBRIDGE, Mass.--(BUSINESS WIRE)--TILT Holdings Inc.  (CSE: TILT) (OTC: SVVTF), a vertically-integrated infrastructure and technology platform serving the cannabis industry, is pleased to announce a US$6.8 million private placement equity financing with Weston Capital Group. An affiliate of Weston Capital purchased 1,734,194 units of the Company at a price of C$5.25 per Unit, with each Unit consisting of one common share in the capital of the Company and one Common Share purchase warrant exercisable into Common Shares at C$5.25 for a period of 12 months from the closing of the private placement.

New York and San Francisco based WCG, and its principals, are sophisticated investors in leading technology-enabled platform businesses with over US$2 billion in realized investment gains, participated in TILT’s US$119 million equity capital raise, which closed on November 21, 2018, with aUS$5 million investment; as such, Weston Capital’s total investment in TILT to US$11.8 million.

Following due diligence on TILT’s business the broader industry and the competitive set, WCG determined that TILT has a unique technology-driven business model and has entered into several acquisitions that will provide significant scale that will position the company for rapid growth and expansion. TILT is the only cannabis company in which WCG has invested. This additional investment above TILT’s current stock price provides incremental capital for the significant growth opportunity ahead and reflects WCG’s confidence in TILT’s potential ability to deliver long-term shareholder value across broader market cycles.

WCG’s noted reasons for its investment include:

* TILT’s medical-background and focus on cutting-edge genetics that will help suffering patients.

* TILT is the disruptive leader in e-commerce and CRM for the cannabis industry with one third of market share already.

* TILT’s retail store designs and per-square-foot revenues are among the best in the sector.

* Talented management team has experience in high-growth businesses and executing accretive M&A.

* Weston Capital Group believes that the market does not yet reflect the strong combined value that TILT has created via its recent business combination which created distinctive scale in the fast growing counter cyclical industry.

In addition to this private placement, WCG has committed to serve in an operating and advisory capacity to support TILT’s continued industry-leading growth. As part of the investment, WCG has entered into a strategic agreement with the Company effective December 13, 2018 (“Strategic Agreement”) WCG will provide TILT with operating advice on the integration of the businesses and assets of the Company, marketing and brand development and such further services as the Company and WCG shall agree to from time to time. In exchange for WCG’s entry into the Strategic Agreement, TILT has issued WCG 2,724,694 Warrants exercisable into Common Shares for a period of one year following the entry into the Strategic Agreement at C$5.25.

“Having WCG as a strategic investor and partner presents a number of great opportunities for TILT,” said Alex Coleman, Chief Executive Officer of TILT Holdings. “WCG shares our vision for TILT’s ongoing expansion across the entire cannabis ecosystem and their investment validates TILT’s position as a global cannabis leader and the best positioned tech-centric cultivator, manufacturer and B2B distributor within the cannabis industry.”

About TILT

TILT Holdings Inc. is a vertically-integrated technology and infrastructure company that provides the most comprehensive range of products and services in the cannabis industry. TILT uses its technology, brands and industry expertise to deliver high quality products and solutions to cultivators, wholesalers, retailers and consumers in every segment of the industry. TILT technologies have a presence in more than 1,000 dispensaries across the U.S., Canada, Puerto Rico and Jamaica. TILT’s same-day delivery service handles delivery for retailers, wholesalers and consumers in four states, including Nevada where it has over 90% market share. TILT has more than two-dozen of its own cultivation, extraction, manufacturing and retail locations in nine states and Canada. TILT is rapidly expanding into new markets. For more information, please visit www.tiltholdings.com.