TILT Holdings Inc. (NEO: TILT) (OTCQX:TLLTF) has signed a definitive agreement to exercise its purchase option for ownership of its Taunton, Massachusetts facility for a purchase price of approximately $13 million.
What Happened?
Through its subsidiary, Commonwealth Alternative Care, Inc., the company has entered into the purchase agreement with the current owner of the Taunton facility.
TILT 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 cCompany 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.
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.
Why It Matters?
Gary Santo, CEO of TILT, said that “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."
What’s Next?
TILT expects the transaction to close on March 31, 2022.
“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,” Santo said.
Photo: Courtesy of Ryan Lange on Unsplash
