TILT Holdings Inc (CSE:TILT) (OTCQB:SVVTF) reported an increase in marijuana revenue of 13% in the second quarter, but TILT stock is in the red today.
Not Enough to Buoy TILT Stock
Strong second-quarter results were not enough to buoy TILT stock, which has been on the slide for the majority of the year, having lost over 80% of its value thus far in 2019. The company was formed as the result of a four-way merger last year and aimed to be the leading end-to-end solutions provider in the cannabis market by providing services in the areas of dispensary operation, cannabis delivery, and software solutions. However, the market is yet to really buy into this jack-of-all-trades business plan.
In Q1, the company reported some glaring issues with its financial position, and this did little to help TILT shares. The company listed its total assets at $541.4 million USD, but $145.8 million USD of this is recognized as goodwill, and a further $210.8 million USD is in intangible assets. Most worryingly, however, was that the company’s total current liabilities as of March 31 “was outpacing total current assets by more than $54 million.”
Some highlights from Q2 include the expansion of the company’s fully licensed Massachusetts cultivation facility and the addition of four new greenhouses in Pennsylvania in mid-June. More importantly, TILT Holdings undertook a boardroom reshuffle of sorts, which included the appointment of Mark Scatterday as interim Chief Executive Officer of TILT and Tim Conder as Chief Operating Officer of TILT. Investors will be hoping that these new appointments can help steady the ship and provide some growth for TILT stock.
“The second quarter was a highly productive period for TILT. We continue to optimize our organization, including the dismissal and re-alignment of senior leadership, accelerate integration efforts, dramatically reduce overhead and instill an enhanced focus on profitable growth,” said interim CEO Mark Scatterday. TILT stock is currently valued at $0.67 per share.
Featured Image: DepositPhotos © jamdesign