TILT Holdings Discloses First-Ever Positive Adjusted EBITDA In Q3

TILT Holdings Inc. TILT TLLTF disclosed revenue of $46.1 million for the third quarter, up by 18% on a quarter-to-quarter basis.

The company posted its first-ever positive adjusted EBITDA quarter of $2.7 million, up from adjusted EBITDA loss of $4 million in the prior quarter.

It has a net income of $26.1 million for the quarter, which compares to a net loss of $48.9 million in the second quarter.

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TILT also disclosed some important business achievements, including the announced closing of $25.6 million of a $35 million shareholder backed financing, announced forfeiture of around 60 million stock options from its founders which contributed to a positive $37 million adjustment to net income, sales growth of 70% and 218% quarter-over-quarter of Jupiter Research and Commonwealth Alternative Care, respectively.

“We have successfully completed the first and most important phase of our turnaround that resulted in three major achievements," interim CEO Mark Scatterday said in a statement. "[W]e secured attractive financing that solidified our foundation for scalable growth, we negotiated the forfeiture of legacy stock options from founders that put undue pressure on our balance sheet, and most importantly, we reported our first-ever positive adjusted EBITDA quarter of US$2.7M including an 18% increase in revenue from the second quarter of 2019.”

TILT’s stock closed Wednesday’s market session 10.79% higher at 32 cents per share.