TILT Holdings Files for CCAA Protection, Shareholders Face Wipeout

Toronto, Canada – November 14, 2025 – Cannabis hardware and packaging solutions provider TILT Holdings Inc. (CSE: TILT) announced today it has initiated proceedings under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice. The move, triggered by mounting debt and declining revenues, effectively signals a restructuring that will likely result in the complete wipeout of existing shareholders.

The company, which designs, manufactures, and distributes vaporization hardware, packaging, and accessories, has been struggling amidst broader challenges plaguing the North American cannabis industry. Declining wholesale cannabis prices, stringent regulations, and limited access to traditional banking services have created a difficult operating environment, particularly for companies carrying substantial debt.

A Deep Dive into the Financial Distress

TILT’s financial performance has deteriorated significantly over the past year. Full-year 2024 revenue totaled $115.61 million, a 30.33% decrease from $165.96 million in 2023. The company reported a net loss of -$99.67 million for the year, a 59.8% increase in losses compared to the previous year. The downturn continued into 2025, with Q1 revenue at $22.7 million and a net loss of -$13.2 million. Most recently, Q2 2025 revenues plunged to $10.5 million, with an adjusted EBITDA of -$2.0 million.

“The company has been facing increasing pressure from declining revenues and a challenging macroeconomic environment,” stated one industry analyst, speaking on background. “They’ve been trying to streamline operations and reduce costs, but it wasn’t enough to offset the losses.”

According to court filings, TILT currently holds approximately $2.0 million in cash and owes $42.2 million in secured debt and $47.2 million in unsecured debt. The CCAA filing provides a stay of proceedings, preventing creditors from taking immediate action to recover their debts.

Restructuring Plan: A Bleak Outlook for Shareholders

The proposed restructuring plan, outlined in court documents, involves a significant overhaul of TILT’s operations. The company intends to exit its U.S. plant-touching operations in Massachusetts and Ohio within the next twelve months, classifying these as discontinued operations. It will focus on its core vaporization hardware business and its European operations.

However, the plan comes at a steep cost for existing shareholders. The company plans to issue new equity to its noteholders in exchange for extinguishing their debt. This effectively dilutes existing shareholders’ ownership to zero.

“The shareholders are going to be completely wiped out,” confirmed one source close to the restructuring process. “It’s a harsh reality, but it’s the only way the company can restructure its debt and continue operating.”

The CCAA proceedings will allow TILT to continue operating while it develops a plan of arrangement to address its financial difficulties. A meeting of noteholders is scheduled for November 17, 2025, to vote on the restructuring plan. The Ontario Superior Court will need to approve the plan before it can be implemented.

Broader Industry Headwinds at Play

TILT’s struggles are not unique. The North American cannabis industry is facing a confluence of challenges, including regulatory hurdles, oversupply, and price compression. Many companies are struggling to achieve profitability, and consolidation is accelerating.

“The industry is going through a painful correction,” explained one cannabis investor, speaking anonymously. “Companies that were overvalued during the boom are now facing a harsh reality. We’re seeing a lot of companies restructure or even go bankrupt.”

One significant factor contributing to the industry’s woes is the lack of access to traditional banking services. Due to federal prohibition, most cannabis companies are forced to rely on cash-intensive operations, which creates security risks and hinders growth. The lack of access to capital also makes it difficult for companies to invest in innovation and expansion.

Furthermore, the complex and fragmented regulatory landscape across different states creates significant compliance costs. Companies must navigate a patchwork of rules and regulations, which can be time-consuming and expensive.

A Silver Lining: Jupiter’s European Certification

Despite the overall gloom, TILT has secured a potential win with its subsidiary, Jupiter Research. In May 2025, Jupiter received EU medical device certification for a handheld liquid inhalation device, positioning it to capitalize on the growing European medical cannabis market.

“This certification is a significant milestone for Jupiter,” stated a company spokesperson. “It opens up new opportunities for us to expand our presence in Europe and provide patients with innovative medical cannabis delivery solutions.”

However, even this positive development is unlikely to fully offset the challenges facing TILT as a whole. The restructuring plan prioritizes debt repayment and operational stability over growth initiatives.

What’s Next for TILT and its Shareholders?

The coming weeks will be crucial for TILT Holdings as it navigates the CCAA proceedings and seeks approval of its restructuring plan. Shareholders are bracing for the loss of their investment, while creditors await repayment of their debts. The company hopes to emerge from restructuring as a leaner, more focused organization, but the path ahead remains uncertain. Trading of TILT’s common shares on the Cboe Canada has been suspended, and the company’s future listing status is in jeopardy.

The situation serves as a cautionary tale for investors in the volatile cannabis industry, highlighting the importance of careful due diligence and risk management. The industry's long-term prospects remain promising, but the road to profitability will likely be bumpy and fraught with challenges.