TILT Holdings CEO Gary Santo On The Rise Of Cannabis Brands

In this new Trade To Black podcast, TDR Founder Shadd Dales and contributor Anthony Varrell interviewed the CEO of TILT Holdings (OTCMKTS: TLLTF), Gary Santo. The trio recently met up at the Benzinga Cannabis Capital Conference in Miami, which hosted representatives of most of the top U.S. cannabis companies. On the agenda: Gary gives his perspective on the proliferation of consumer brands, TILT’s transition as a consumer packaged goods company, wholesale vs. retail model and more.

On the subject of consumer brands, Gary is finally starting to see some traction and separation between operators. This has become more apparent as the markets mature and consumers become more experimentational with the selection of products on the marketplace:

I think we’re starting to see the proliferation of some brands. on some of the ones that really did the legwork, which is: connecting with the customer, doing the education with the customer—all those pieces. If you just put a name on it, that doesn’t count.

Within the limitations of advertising restrictions, TILT Holdings is focused on winning market share in the dispensary, where it knows it has a limited amount of time to capture the consumer’s attention upon entering.

On the subject of financing, Gary also reports that TILT Holdings is in a much better place following an announced a series of transactions that alleviated its near-term debt maturity.

Following that transaction, company non-revolving debt obligation to US$46 million, down from US $86.7 million in December 2021. The Notes are not set to mature until February 2026, so barring an extension in the lead-up, TILT has a predictable interest payment schedule and no debt cliffs upcoming for almost three years time.

A ‘debt cliff’ is a situation where a borrower faces a significant increase in their debt service obligations all at once, typically due to a large amount of debt coming due or a sharp increase in interest rates. This sudden increase in debt payments can make it difficult or even impossible for the borrower to meet their obligations and may lead to default or bankruptcy.

To view our previous Trade To Black podcast featuring Apeiron Investment Group founder Christian Angermayer, click here.

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