TILT Holdings Inc. (NEO:TILT) (OTCQX:TLLTF) has has signed an amendment to its previously announced definitive agreement to exercise its purchase option for ownership of its Taunton, Massachusetts facility.
What Happened?
Pursuant to the terms of the amendment, TILT paid to extend the closing of the transactions contemplated by the purchase agreement to a date that is on or before May 31, 2022.
The mutually agreed-upon amendment also extends the due diligence period and the deadline to determine whether TILT will acquire both Unit A and Unit B of the condominium comprising the Taunton facility until May 15, 2022.
Deal Details
TILT inked a definitive agreement to exercise its purchase option for ownership of its Taunton, Massachusetts facility for a purchase price of approximately $13 million in February.
Through its subsidiary, Commonwealth Alternative Care, Inc., the company has entered into the purchase agreement with the current owner of the Taunton facility.
The Taunton facility is comprised of two condominium units (Unit A and Unit B). If the company elects to purchase Unit A only, the purchase price shall be reduced to approximately $4.6 million.
Why It Matters?
Gary Santo, CEO of TILT, earlier said that “gaining full ownership of our operations campus in Taunton will provide us greater flexibility to expand cultivation, implement leading processing and manufacturing techniques and successfully position ourselves for the industry’s continued evolution towards a more traditional CPG model."
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Photo: Courtesy of Tim Foster on Unsplash
