A company founded in Chattanooga is one of four leading companies in the burgeoning cannabis business who have merged to form TILT Holdings Inc.
Briteside was organized in Chattanooga by Justin Junda, but is now based in Oregon.
Officials said the united companies "represent all facets of the industry to provide technology driven solutions throughout the entire cannabis ecosystem."
"TILT will enable businesses the opportunity to interact, communicate and operate with a greater degree of efficiency with their patients and consumers," said Alex Coleman, manager of Sea Hunter Holdings, LLC. "Due to the conflict between federal and state law, the industry still faces numerous challenges that are impeding the ability of businesses to effectively deliver products and services to a large and growing demand base.
TILT will maintain competencies across the entire spectrum of the industry, from vertically integrated operations to cutting edge genetics and CRM systems, all supported by robust data-driven insights. While a portion of our revenue is derived from our own proprietary operations, our emphasis is to enable businesses the ability to successfully evolve and meet the needs of a rapidly growing market."
The companies forming part of the business combination, which have collectively raised over $150 million in capital and securities, include:
Baker Technologies Inc. (Denver, CO) - The cannabis industry's largest software company, Baker helps dispensaries generate more revenue and build relationships with their customers through a variety of products, featuring online ordering, customer loyalty, messaging, and analytics. The company works with over 1,000 dispensaries in 24 states and Canada.
Briteside Holdings, LLC (Bend, OR) - Briteside produces a diverse range of products and services, from prefabricated modular cultivation units to home delivery and subscription based services. All Briteside products are predicated on proprietary algorithms designed to improve yields and efficiencies while reducing costs and time.
Sea Hunter (Boston, MA) - Sea Hunter is a leading source of cultivation, retail, operational and capital support to state licensees and, in certain circumstances, operates proprietary, vertical operations which allows it to deliver a more knowledge based product to customers.
Sante Veritas Holdings Inc. (SVT) - SVT's subsidiary Santé Veritas Therapeutics Inc. ("SVT Subco") is at the final stage of obtaining a cultivation license under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR"). Health Canada recently issued SVT Subco a "confirmation of readiness" for a licence under the ACMPR, confirming its initial annual cultivation request of 2,835,000 grams of cannabis flower. SVT Subco is currently completing the buildout of Phase I of its cannabis products cultivation platform, comprising more than 40,000 square feet of combined indoor cultivation and administrative facilities in Powell River, British Columbia, on a waterfront site that was formerly part of Catalyst Paper's operations. SVT Subco anticipates receipt of licensed producer status later in 2018.
The merged company, TILT, expects to establish operations in every state where cannabis laws exist, for both infrastructure as well as technology. At present, Baker, Briteside and Sea Hunter operate in 24 states collectively, and have licenses for operations in a portion of those, and expects to operate in all such states within a short time.
The merged company, TILT is forecasting revenue of $70 million at calendar year-end 2018 and in excess of $200 million at calendar year-end 2019. TILT will maintain principal offices in Boston, Denver and Toronto.
"The combined company is expected to allow TILT to provide a more holistic solution to the industry," said Baker CEO, Joel Milton. "Baker's goal has always been to provide our clients a single platform that connects all of the tools and data they use on a daily basis. This merger is expected to be a win for us, the cannabis retail ecosystem and, most of all, the producers and dispensaries and their customers. Through this broader platform, with greater access to capital and resources, we are excited to introduce new technology enabled products which continue to create value for our clients. While these are currently being generated internally, we now also expect to accelerate our offerings through complementary, future acquisitions."
Briteside has been involved in growing, processing and selling marijuana. Briteside has also been offering an e commerce site to Oregon dispensaries to make orders and deliveries easier.