Cannabis markets entered 2019 with some fanfare as another major acquisition announcement was revealed. Massachusetts-based TILT Holdings Inc (CSE: TILT), a technology and infrastructure company serving the cannabis industry, announced that it had agreed to acquire Jupiter Research, a major vaporization and inhalation research and technology company. The agreement, which was signed on January 2nd, would see TILT offer US $210 million to acquire Jupiter.
“Our acquisition of Jupiter Research is paramount to our goal of consolidating and centralizing services for all industry verticals: cultivation, production and retail. Vaporization is increasingly becoming the preferred method for cannabis consumption,” said TILT CEO Alex Coleman. “With Jupiter’s proprietary inhalation technology, our offerings in this category are going to be unparalleled.”
Jupiter Research was founded in 2015 by Mark Scatterday and Bob Crompton, prior product developers who are now on the forefront of the multi-billion dollar vaporization industry. The company produces cartridges and power supplies that are specifically designed with cannabis oil in mind, boasting exclusive CCELL technology. They also partner with over 700 brands and retailers across Canada, U.S., Europe and Israel. In 2018, the company brought in over $105 million USD in orders along with a further $28 million in orders confirmed for Q1 2019.
“Our rich heritage in CPG and e-cigarette product innovation combined with long-standing manufacturing partnerships in China provided us a market leading advantage to bring advanced high-performance technologies to the cannabis industry,” added Scatterday, co-founder of Jupiter Research. “Jupiter Research’s monthly sales continue to increase 15 percent month over month, and we already have US$28M of booked order going into Q1. The opportunity to combine the synergies of the TILT portfolio of companies is expected to add to our rapid growth.”
According to Cannabis Business Times, TILT was formed from four companies that came together, bringing a combined market presence scattered across 24 states into one firm. The missing component, however, was the technology that could connect TILT with the increasing market demand for vaping/inhalation products. Instead of trying to compete with the myriad of other multi-state operators through building more retail stores, TILT decided that they would take an approach centered to servicing the industry as a whole.
Many analysts agree that this acquisition is seen as a strong business move for TILT, further cementing their place as a top company servicing the cannabis industry as a whole. TILT shares went up 4.3 percent today in light of this news while the Dow Jones Industrial Average tumbled 660 points in comparison.
TILT Holdings Company Profile
TILT Holdings Inc. is a vertically-integrated technology and infrastructure platform delivering the most comprehensive range of products and services across the cannabis industry. TILT strives to deliver the highest quality products and services through knowledge-based technology systems for both businesses and consumers. TILT technologies has a presence in more than 1,000 dispensaries across the U.S., Canada, Puerto Rico and Jamaica. – TILT Holdings
Jupiter Research Company Profile
Jupiter Research provides vaping technologies for plant based oils, designed to maintain quality and standards of premium extracts. At Jupiter Research, we design, develop and manufacture vaporization technology hardware for the essential oil & plant based oil extractor. –Crunchbase