Cannabis company Tilt Holdings Inc. TILT, +0.52% Chief Executive Mark Scatterday said in a letter responding to investor concerns, that the $60 million in stock-based compensation paid to executives, despite reporting a large first-quarter loss, were from options issued six months ago, before he became CEO. He said Tilt management and founders remain "strongly" committed to the company, as witnessed by the additional and extended lock-up agreement signed by a number of insiders to not sell shares. The letter comes after the stock closed Wednesday at a record low, after plunging 39% over the past month, while the S&P 500 SPX, +0.82% has slipped 4.1% over the same time. The lock-up agreement covers 80,340,640 shares held by insiders, representing 18.;6% of the voting shares. Under terms of the agreement, 10% of the shares will be released from lock up on Thursday, 40% will be released on Dec. 6 and the remaining 50% will be released on June 6, 2020. "This lock-up extension reflects our confidence in the vision and long-term growth potential of the Company by its founding members," Scatterday said.
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