TILT Holdings Inc., a global provider of cannabis business solutions that include inhalation technologies, cultivation, manufacturing, processing, brand development and retail, announced that it has signed an asset purchase agreement (APA) to divest two dispensaries in Massachusetts (the “transaction”). The transaction is aligned with TILT’s broader strategy to explore strategic alternatives for its plant-touching business, streamline operations, and unlock value in its vape hardware business, Jupiter Research.
Under the terms of the transaction, TILT will transition ownership of its Taunton, Mass., dispensary to In Good Health, a private single-state cannabis operator, and shut down its Brockton, Mass., dispensary for $2 million in cash considerations. The company still has one location in Cambridge that is part of plant-touching assets under review.
“This divestiture marks an important first step in TILT’s execution of strategic transactions aimed at optimizing our balance sheet and operating expenses,” TILT CEO Tim Conder said. “We are making steady progress in identifying and executing strategic alternatives for our plant-touching assets, including cultivation and manufacturing operations in Massachusetts, Pennsylvania, and Ohio. In parallel, we are actively optimizing our Jupiter business to continue to deliver the best products and service to our customers in a rapidly evolving vaporization hardware market.”
“We are excited about adding to our Massachusetts retail footprint and providing a new cannabis experience for Taunton-area residents, some of whom we have been serving for years in our Brockton dispensary,” In Good Health President and CEO David Noble said. “This acquisition allows us to bring our signature brands and high-quality, affordable products to a new community. Taunton is a perfect third point on the triangle, with our Brockton location to the north and Sandwich to the east, and this location will allow us to efficiently move resources within this territory to best meet the needs of our customers.”
Transaction Timing and Details The transaction is expected to close in the first half of 2025, subject to receipt of customary regulatory approvals and satisfaction of other closing conditions outlined in the agreement.
Highgate Capital Partners was retained in connection with the company’s strategic alternatives review and is the broker on this transaction.
H/T: www.cannabisbusinesstimes.com
