Will the TILT Holdings Inc (OTCMKTS:SVVTF) Bounce Have Serious Legs?

Will the TILT Holdings Inc (OTCMKTS:SVVTF) Bounce Have Serious Legs?


One stock that closed out last week with a bang was TILT Holdings Inc (OTCMKTS:SVVTF). Shares of the stock ripped off of key support to close up over 22% on more than twice average transaction volume. Helping to drive the action, the company just announced the appointment of Mark Scatterday to the position of interim Chief Executive Officer of TILT, effective immediately.

According to the release, “the board of directors of TILT (the “Board”) has formed a committee which is in the process of retaining an executive search firm for the purpose of identifying a long-term CEO candidate to lead the Company through its next growth phase. Alex Coleman, the Company’s former CEO, has stepped down and will remain as Chairman of the Board and continue to focus on corporate development and strategy including possibly a separate public listing in the US for qualifying assets, partnership or joint ventures.”

TILT Holdings Inc (OTCMKTS:SVVTF) trumpets itself as a vertically-integrated technology and infrastructure company, engages in the provision of various products and services in the cannabis industry.

It focuses on the production and delivering genetically researched cannabis products through the wholesale market in partnership with retail operators; and provision of software and services that help retail partners in connecting with retail customers with knowledge based promotional activities.

The company is based in Vancouver, Canada.

According to company materials, “TILT is a leading provider of products and services to businesses operating in the cannabis industry. The Company offers the contract manufacturing of marijuana in a variety of form factors, vaporizer and inhalation devices, business and consumer delivery services and a broad suite of software products for over 1,500 retailers and brands throughout the United States (“U.S.”), Canada and Europe. The majority of TILT’s products are customized to client specifications and branding, all enabling them to operate their businesses more efficiently and connect with their customers more effectively. The Company is organized in two main business units, Software & Services and Consumer Devices & Packaged Goods, designed to augment competencies across the organization in research, manufacturing, packaging and technology to deliver end-to-end services and customer solutions. All of TILT’s products are supported by an extensive research process led by scientists and engineers, who use data analytics and discovery to produce new products, helping shape the industry. Headquartered in Cambridge, MA, with offices throughout the U.S., Toronto and London, TILT has over 500 employees and has sales in 40 U.S. states, Canada and Europe.”

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As noted above, SVVTF just announced the appointment of Mark Scatterday to the position of interim Chief Executive Officer of TILT, effective immediately.

Even in light of this news, SVVTF has had a rough past week of trading action, with shares sinking something like -3% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way.

Moreover, the listing has seen interest climb, with an increase in recent trading volume of approaching 150% above the average volume levels in play in this stock over the longer term. It pays to take note of this fact with a float in play that’s relatively small — less than 11M shares.

“The plan has always been to identify a CEO with strong operational experience to replace me as soon as it made sense for the Company,” said Mr. Coleman. “With the completion of our four-way merger, public listing on the CSE and several subsequent acquisitions, it is an ideal time to make this change. Mark is a fantastic operator and exactly the person we need to transition this company to its next phase as we conduct this search. The Board will be looking for a permanent CEO who has proven success as a public company executive and who can utilize operational talent like Mark to best position TILT for future growth.”

Currently trading at a market capitalization of $215.32M, SVVTF has a significant war chest ($7.3M) of cash on the books, which must be weighed relative to about $1.7M in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $SVVTF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $SVVTF, either long or short, and we have not been compensated for this article.

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