Massachusetts-based Tilt Holdings and the Shinnecock Indian Nation on Long Island, New York, are partnering to create a vertically integrated cannabis company.
Through a joint venture with the tribe’s cannabis project development firm, Conor Green, marijuana tech firm Tilt will finance, build and provide management services for the operation, according to a news release.
A Tilt subsidiary bought all the “Class A units” of Standard Farms New York, which will hold a 75% interest in the Conor Green joint venture.
The Tilt subsidiary paid approximately $700,000 in cash and stock and, according to Forbes, “up to $2.65 million will be paid in additional shares priced at the time of closing, contingent upon certain milestones, like commencement of retail and wholesale cannabis sales.”
The marijuana company formed by the joint venture will be called Little Beach Harvest. The company will be wholly owned by the Shinnecock Nation and will be built on territory in the Hamptons.
Tilt plans to 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.
Several Native American communities in New York are jumping into the cannabis sector and could be the first to sell recreational marijuana in the state.