US Cannabis Operator Tilt Holdings Delists Social Equity Brands

NEW YORK- Black Buddha Cannabis, a brand founded by Roz McCarthy, who also serves as the CEO of Minorities for Medical Marijuana Inc., has unexpectedly found itself severed from its partnership with Tilt Holdings (NEO: TILT) (OTCMKTS: TLLTF) a notable player in the cannabis industry.

This move comes as part of Tilt’s reassessment of its brand and product lineup, aimed at refining its overall strategy. Alongside Black Buddha Cannabis, Tilt has also decided to part ways with other social equity brands, including Her Highness, established in New York by Laura Eisman and Allison Krongard, and Highsman, a venture launched by former professional football player Ricky Williams. The decision to cut ties with these brands, according to Tilt, was made based on their compatibility with Tilt’s strategic direction and their need for support to thrive.

Roz McCarthy, CEO of Black Bhudda Cannabis and Founder of Minorities for Medical Marijuana

Tilt, headquartered in Phoenix, Arizona, has raised eyebrows with these swift changes. Roz McCarthy, founder of Black Buddha Cannabis, speaking to Highly Capitalized expressed her surprise at Tilt’s decision, especially considering the initial enthusiasm surrounding the partnership. McCarthy also lamented the sidelining of brands owned by women and minorities. This unexpected move has also disrupted ongoing capital-raising efforts for some of these brands.

Speaking to Highly Capitalized, McCarthy said: ”Look, I get it, it’s all just business, but it’s the way they did it, so suddenly that has left me scrambling,” she added that her brand was performing well, and her team were spending resources supporting the brand. Sure, she needed help, she said, ”but the brand was moving in the right direction,” she explained. Now she felt, Tilt can ”no longer claim to support diversity and social progress in cannabis.”

Highly Capitalized reached out to Tim Conder, CEO of Tilt for comment and invited him to interview to discuss this story.

(Tim Conder, Interim CEO of TILT Holdings NEO: TILT)

Apart from ending partnerships with these social equity brands, Tilt has also revealed that it is stepping back from its collaboration with the New York Shinnecock Nation due to challenges encountered in the New York cannabis market. While Tilt’s recent earnings announcement emphasized a focus on its Jupiter vape business, this sector has seen a decline in sales. Brad Hoch, Tilt’s interim CFO, attributed the revenue decrease to supply constraints within the Jupiter business. Despite these challenges, Tilt is determined to expand its presence in the inhalation category and maintain its collaborations with Old Pal Cannabis and Toast.

These recent changes reflect a significant shift in Tilt’s strategic approach and its partnerships within the cannabis industry. Such a move seems like an incredible PR disaster for Tilt’s reputation in the industry. Stay tuned to Highly Capitalized for more on this developing story.