TILT stock is showing heavy selling pressure in Thursday's session after TILT Holdings (CSE:TILT) (OTCQB:SVVTF) posted Q4 and fiscal 2018 earnings report.
Late Wednesday, the company released its audited financial statement as well as a business update for the year ended December 31, 2018. The company will release Q1 2019 results at the end of May.
FY 2018 Results
Tilt reported FY 2018 revenue of $5.7 million, which includes full-year revenue of Sea Hunter and one-month revenue from its merger with Baker Technologies, SanteVeritas, and Briteside. TILT CEO Alex Coleman stated that the results reflect all four mergers and they were encouraged by the streamlining of operations and pro forma results as the company integrates the businesses in 2019.
In Q4 2018, the company began listing on the Canadian Securities Exchange after closing four mergers that provided the foundation for TILT Holdings. The company completed a $119 million capital raise in Q4 2018 besides other key acquisitions. The CEO indicated that TILT continues to grow and despite the business being formed just last year; it has been on the front of growth and already it is earning considerable pro forma revenue.
Gross profit for FY2018 was approximately $2.4 million with the gross margin reflecting the start-up costs related to beginning cultivation in Massachusetts.
Early this year the company closed the acquisition of standard Farms and Blackbird. It has successfully launched a manufacturing supply-chain partnership for third parties in Massachusetts with Blackbird launching a direct-to-consumer delivery in Los Angeles.
TILT stock was also uplisted into the OTCQB venture market.
Acquisition of Jupiter
The company announced that Jupiter Research has expanded the distribution of its high performance and proprietary technology in California through the integration of its TILT software and distribution services. The expansion will enable Jupiter to increase its geographical reach and presence in California thus enabling TILT to establish stronger client relationships and supply Jupiter products.
Jupiter was acquired by TILT as a way of expanding the B2B reach and technology ecosystem in the supply chain.
TILT stock is down over 17%, selling for $2.20 CAD in Thursday's trading session.
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