TILT Holdings Inc. will sell two Massachusetts retail outlets to In Good Health, a local retailer for cash of $2 million. This was announced by the company on Monday.
In Good Health, TILT’s owner in Taunton will now transfer its ownership to In Good Health. Brockton will be closed. In addition to the remaining Cambridge dispensary, which is still under review as part of a strategic review, the company will also retain other manufacturing and cultivation assets in Massachusetts and Pennsylvania.
In the face of ongoing financial difficulties, TILT has sought to simplify operations in order to focus more on Jupiter Research, its core business. According to its November results, the company posted a net loss of $12.6 million in the most recent quarter. Revenues fell by nearly 40% from $27 to just under $25 million.
Tim Conder, CEO of TILT said that this divestiture marked an important first in TILT’s strategic transactions aimed optimizing our operating expenses and balance sheet. The CEO noted that the Jupiter division is being “actively optimized” to ensure “the best service and products to our customers within a rapidly changing vaporization market.”
The acquisition will expand In Good Health’s Massachusetts presence. In 2015, the cannabis company was founded by a woman in the state.
David Noble, CEO of In Good Health said: “This acquisition will allow us to offer our high-quality products and signature brands to a whole new market.” He added that the Taunton dispensary is “a perfect point in the triangle”, with existing Brockton, Sandwich and In Good Health’s other locations.
The closing of the deal, subject to approval by regulatory authorities, is estimated to take place in 2025’s first half. Highgate Capital Partners, an investment bank, advised the transaction.