(This story has been updated from an earlier version.)
Consolidation continued in the cannabis industry Tuesday, with four major marijuana businesses from the United States and Canada merging to launch a multinational company with combined revenue forecast to total more than $200 million next year.
Operating under the name TILT Holdings, the new companies will include the combined operations of Baker Technologies, Sea Hunter, Briteside Holdings and Sante Veritas Holdings, according to a news release.
Terms of the arrangement were not released.
The merger creates a unique cannabis conglomerate – with operations in 24 states and Canada and specialties in cannabis tech, cultivation and support solutions.
TILT is forecasting revenue of $70 million in 2018 and in excess of $200 million by the end of 2019.
Here’s a snapshot of each entity’s reach and scope:
- Baker Technologies of Denver is a cannabis technology firm with products that include online ordering, customer loyalty, messaging and analytics. The company works with more than 1,000 dispensaries in 24 states and Canada.
- Bend, Oregon-based Briteside is a manufacturer of prefabricated modular cultivation units and provides home delivery- and subscription-based services.
- Sea Hunter of Boston is a cannabis investor and operator of state-licensed operators and dispensaries in three states.
- Sante Veritas Holdings of Vancouver, British Columbia, has a subsidiary, Sante Veritas Therapeutics, awaiting a cannabis production license. The firm recently completed a build-out of its first manufacturing facility in Powell River, British Columbia.
The firm said it will use its combined capital for acquisitions and infrastructure as it continues to grow, said Alex Coleman, TILT’s CEO.
“Our platform will allow us to get into new markets and grow at a lower cost in less time,” Coleman told Marijuana Business Daily, adding that the firm expects to launch in every state that legalizes cannabis. “The only variable is time.”
Top leadership aside from Coleman, includes:
- Baker CEO Joel Milton, who will become president overseeing the technology side.
- Sea Hunter managing partner Robert Leidy, who will assume the role as president in charge of consumer-related operations.
- Briteside CEO Justin Junda, who will become TILT’s chief visionary officer.
The combined company has more than 100 employees with projections of more than 500 by the end of the first quarter in 2019. TILT’s primary offices will be in Boston, Denver and Toronto.
The deal is part of a continued boom of cannabis deals and merger-and-acquisition action as more U.S. states legalize and Canada prepares for the launch of its adult-use market, expected later this year.
Just Monday, Aurora Cannabis announced it would acquire rival Canadian cannabis producer MedReleaf in a deal valued at $3.2 billion Canadian dollars ($2.5 billion).
The transaction, the largest deal inked in the cannabis sector to date, gives Aurora a footprint that will span 11 countries with a distribution reach into Europe, South America and Australia.
Lisa Bernard-Kuhn can be reached at [email protected]