PHOENIX, Aug. 24, 2021 (GLOBE NEWSWIRE) — 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, today announced a new partnership with the Shinnecock Indian Nation (“Shinnecock” or the “Nation”), a federally recognized Native American tribe living on their traditional lands on Long Island, N.Y., to establish vertical cannabis operations on their aboriginal tribal territory in the Hamptons.
Through a joint venture with the Nation’s cannabis project development firm Conor Green, TILT will finance, build and provide management services for the vertical cannabis operations of the Shinnecock Nation’s wholly owned cannabis business, Little Beach Harvest (“Little Beach Harvest”). The combination of TILT’s cannabis industry expertise with Shinnecock’s long history of understanding and use of plant medicine for healing will serve as the foundation of a truly unique and socially equitable partnership in the cannabis industry.
“We are proud to help create an entry into the cannabis industry that will be impactful for the Shinnecock Nation,” said Gary Santo, CEO of TILT Holdings. “To date, Indigenous people have been largely excluded from the social equity conversation across the country. This partnership — which is a true partnership in every sense — is a step forward in creating social equity for the Nation. We believe our expertise in cannabis operations along with Shinnecock’s thought-leadership and cultural connection to plant medicine will deliver economic growth for the region, while cementing the Nation as a leader in cannabis operations among Indigenous communities.”
The TILT team will work closely with Little Beach Harvest to educate, train and employ tribal members and the local community, together creating a sustainable environment that fosters economic growth within Shinnecock for generations to come.
“This is an exciting and momentous opportunity for our Nation,” said Chenae Bullock, member of the Shinnecock Nation and Managing Director of Little Beach Harvest. “As the wealth gap in the U.S. has grown wider and wider, it is economic development opportunities like this that will help our tribe bridge the gap. Through our partnership with TILT, we will not only create dozens of jobs and jump start careers, but will also cultivate business relationships with other tribal business owners, generating growth for Indigenous communities.”
Shinnecock Nation Chairman Bryan Polite added, “Over the past few years, we have been working diligently to ensure that the Shinnecock Nation will be a responsible and positive addition to the New York cannabis market. We have been impressed by TILT’s commitment to building such an equitable partnership and believe that they bring the right kind of expertise at precisely the right time to help us become a leading operator in the emerging New York cannabis market.”
Transaction & Financial Highlights
A subsidiary of TILT has purchased 100% of the Class A membership interests of Standard Farms New York, LLC (“SFNY”) which will hold a 75% interest in a joint venture with Conor Green for approximately $700,000, in cash and stock, with up to $2.65 million to be paid in additional shares priced at the time of closing, to be issued upon achievement of certain milestones, including commencement of retail and wholesale cannabis sales.
Through the agreements between the joint venture and Little Beach Harvest, TILT will provide management services to Little Beach Harvest for the development of the facilities, including planning, design and funding of up to approximately $18 million in capital expenditures in order to provide a fully vertical cannabis operation. The 9% debt financing TILT provides is repaid through cash flows monthly and is secured by the assets of the project which will include:
a 60,000 square-foot cultivation, processing, extraction and packaging facility;
a two-story dispensary with a drive through; and
an adjacent wellness lounge.
A cornerstone of the business will be for Native Preference in its hiring and career development opportunities, as well as providing an economic engine for the local job market, contractors, and community. The dispensary and lounge are being built on Montauk Highway, just minutes from Southampton’s business district, Cooper’s Beach, and Shinnecock Hills Golf Club.
In exchange for providing management services, SFNY receives 11.25% of the Nation’s gross revenue as well as 18.75% of free cash flows from all Shinnecock cannabis operations during the initial term of up to nine years. The management agreement may be extended up to 10 additional years, pending accomplishment of certain performance-based milestones related to revenue and profitability.
Unless otherwise indicated, all dollar amounts in this news release are expressed in U.S. dollars.
TILT helps cannabis businesses build brands. Through a portfolio of companies providing technology, hardware, cultivation and production, TILT services brands and cannabis retailers across 36 states in the U.S., as well as Canada, Israel, Mexico, South America and the European Union. TILT’s core businesses include Jupiter Research LLC, a wholly-owned subsidiary and leader in the vaporization segment focused on hardware design, research, development and manufacturing; and cannabis operations, Commonwealth Alternative Care, Inc. in Massachusetts, Standard Farms LLC in Pennsylvania and Standard Farms Ohio, LLC in Ohio, and its partnership with the Shinnecock Indian Nation in New York. TILT is headquartered in Phoenix, Arizona. For more information, visit www.tiltholdings.com.
About Little Beach Harvest and Shinnecock Indian Nation
Shinnecock Indian Nation is a federally recognized Native American tribe located on its ancestral territory on Long Island, New York. Our multi-year development of Little Beach Harvest, which includes a modern two-story dispensary and lounge, creates a unique cannabis destination in the Hamptons and will be supplied by our state-of-the-art cultivation facility. Little Beach Harvest is fully owned and operated by the Shinnecock Nation on its sovereign land and its partnership with TILT and Conor Green is a ground-breaking step forward for social equity in the cannabis industry. Little Beach Harvest is regulated by the Shinnecock Cannabis Regulatory Division under the Nation’s tribal cannabis laws. Our mission is to provide an alternative, natural way of healing while creating economic prosperity and sustainability for our community. Our dispensary and lounge will offer a wide variety of cannabis products and form factors, medical marijuana consultations, plus community outreach, education, and social events centered around plant medicines. For more information, visit www.LittleBeachHarvest.com.
This news release contains forward-looking information based on current expectations. Forward-looking information is provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward looking information may include, without limitation, expected economic growth within the Tribe and surrounding community, potential issuance of additional shares to Conor Green pending achievement of certain milestones, estimated lending amount for capital expenditures to fully build the Nation’s cannabis operations, potential size of facilities to be built, anticipated extensions of the agreements with Shinnecock Nation, the opinions or beliefs of management, prospects, opportunities, priorities, targets, goals, ongoing objectives, milestones, strategies and outlook of TILT, and includes statements about, among other things, future developments, the future operations, strengths and strategy of TILT. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans,” “expects,” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or state that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur” or “be achieved.” These statements should not be read as guarantees of future performance or results. These statements are based upon certain material factors, assumptions and analyses that were applied in drawing a conclusion or making a forecast or projection, including TILT’s experience and perceptions of historical trends, the ability of TILT to maximize shareholder value, current conditions and expected future developments, as well as other factors that are believed to be reasonable in the circumstances.
Although such statements are based on management’s reasonable assumptions at the date such statements are made, there can be no assurance that it will be completed on the terms described above and that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Accordingly, readers should not place undue reliance on the forward-looking information. TILT assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by applicable law.
By its nature, forward-looking information is subject to risks and uncertainties, and there are a variety of material factors, many of which are beyond the control of TILT, and that may cause actual outcomes to differ materially from those discussed in the forward-looking statements.
For additional information regarding forward-looking statements and their related risks, please refer to the “Risk Factors and Uncertainties” section in the Management Discussion and Analysis of the Company for the quarter ended on March 31, 2021, which is available on the Company’s SEDAR profile at www.sedar.com.
The NEO Exchange has neither approved nor disapproved the contents of this news release.
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通过与该国大麻项目开发公司康纳·格林（Conor Green）的一家合资企业，TILT将为Shinneck国家全资拥有的大麻业务Little Beach Harvest（“Little Beach Harvest”）的纵向大麻业务提供资金、建设和管理服务。TILT的大麻行业专业知识与Shinnecock了解和使用植物药物治疗的悠久历史相结合，将成为大麻行业真正独特和社会公平的伙伴关系的基础。
TILT Holdings首席执行官加里·桑托（Gary Santo）表示：“我们很自豪能帮助创造一个对辛内科克国家有影响的大麻行业。”“迄今为止，土著人民在很大程度上被排除在全国各地的社会公平对话之外。这种伙伴关系--在任何意义上都是真正的伙伴关系--是为国家创造社会公平的一个进步。我们相信，我们在大麻业务方面的专业知识，以及辛内科克与植物医学的思想领导力和文化联系，将为该地区带来经济增长，同时巩固该国作为土著社区大麻业务领导者的地位。“
TILT团队将与Little Beach Harvest密切合作，教育、培训和雇佣部落成员和当地社区，共同创造一个可持续的环境，为未来几代人促进Shinneck的经济增长。
TILT的一间附属公司已以现金及股票约700,000美元购入Standard Farms New York,LLC（“SFNY”）100%的A类会员权益，该公司将持有与Conor Green合营企业75%的权益，并将以于收市时定价的额外股份支付最多265,000美元，该股份将于实现若干里程碑时发行，包括开始零售及批发大麻销售。
通过合资企业和Little Beach Harvest之间的协议，TILT将为Little Beach Harvest提供设施开发方面的管理服务，包括规划、设计和资助高达1800万美元的资本支出，以提供完全垂直的大麻业务。TILT提供的9%债务融资通过每月现金流偿还，并以项目资产作为担保，包括：
倾斜帮助大麻企业建立品牌。通过提供技术、硬件、种植和生产的公司组合，倾斜服务品牌和大麻零售商遍布美国36个州，以及加拿大、以色列、墨西哥、南美和欧盟。TILT的核心业务包括Jupiter Research LLC，一家全资子公司，是汽化领域的领导者，专注于硬件设计、研究、开发和制造；大麻业务、马萨诸塞州的英联邦替代护理公司、宾夕法尼亚州的标准农场有限责任公司和俄亥俄州的标准农场有限责任公司，以及它与纽约的辛内科克印第安民族的伙伴关系。TILT总部位于亚利桑那州凤凰城。欲了解更多信息，请访问www.tiltholdings.com。
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