Simply Solventless Completes Acquisition and Rebranding Efforts
Closing of a Significant Acquisition
Simply Solventless Concentrates Ltd. (TSXV: HASH, OTC: SSCLCF) has successfully completed the acquisition of Delta 9 Bio-Tech Inc. This deal aligns with SSC's strategic vision to strengthen its position in the cannabis industry. Delta 9 Bio-Tech, a respected entity for its high-quality cannabis products, has now rebranded to Humble Grow Co.
Positive Leadership Insights
Jeff Swainson, President and CEO of SSC, acknowledged the importance of this acquisition. He expressed gratitude to all parties involved, stating, "The closing of the Bio-Tech Acquisition and subsequent rebranding to Humble Grow Co. marks a significant milestone for SSC." He emphasized SSC's robust processing capabilities and the company’s commitment to enhance revenue streams with a focus on organic growth.
The Benefits of the Acquisition
This acquisition not only offers SSC access to Delta 9's cultivation assets but also brings synergies that are likely to benefit both brands. Humble Grow Co. operates a state-of-the-art cultivation facility that enables SSC to secure a consistent supply of premium flower, which is necessary for its range of products, including prerolls and concentrates.
Operational Enhancements
The integration process for Bio-Tech has already begun, focusing on optimizing operations. SSC aims to reduce cultivation costs significantly, projecting costs between $0.50 and $0.70 per gram. This is a strategic move to maintain competitive pricing while ensuring quality. Furthermore, there's a substantial opportunity for SSC to participate in the lucrative dried flower market, which holds a substantial portion of the Canadian cannabis share.
Financial Metrics and Projections
SSC's acquisition price for Bio-Tech was set at $3,000,000, which includes various assets, including $2.5 million worth of inventory. Financial projections estimate that Bio-Tech could generate up to $12 million in annual gross revenue, illustrating a dramatic increase from current figures.
Strategic Revenue Growth
The anticipated adjusted EBITDA for Bio-Tech is projected to be around $2.5 million, with significant contributions to SSC’s overall financial health. After the acquisition, SSC is expected to provide updated guidance reflecting Bio-Tech's sales, marking a new chapter in the company's growth trajectory.
The Rebranding Journey
The transition from Delta 9 Bio-Tech to Humble Grow Co. is not merely cosmetic; it reflects a strategic repositioning aimed at aligning the company more closely with its consumer base. The new name is designed to resonate with current market trends and improve brand visibility.
Innovation and Leadership Changes
Additionally, SSC appointed James Clarke as Vice President of Corporate Services. His extensive background in both the oilfield and cannabis industries supports SSC’s strategic goals and vision for growth. James's experience in launching and managing businesses will play a crucial role in steering SSC into its next phase.
Looking Forward: A Bright Future
The acquisition and rebranding to Humble Grow Co. positions Simply Solventless for future expansions and innovation. By focusing on quality production and market engagement, SSC intends to lead the way in delivering top-tier cannabis products to consumers.
Frequently Asked Questions
What led to the acquisition of Delta 9 Bio-Tech?
Simply Solventless aimed to enhance its market position and expand its product offerings by acquiring Delta 9 Bio-Tech, rebranding it as Humble Grow Co.
How will the acquisition benefit Simply Solventless’s finances?
The acquisition will likely increase SSC's annual gross revenue and adjusted EBITDA, setting a path for financial growth.
What is the significance of the name change to Humble Grow Co.?
The name change reflects a strategic shift to better align with consumer expectations and market dynamics.
Who is the newly appointed Vice President of Corporate Services?
James Clarke has been appointed to this role, bringing a wealth of experience in both the oilfield industry and cannabis sector.
What are the projected financial benefits of the acquisition?
Analysts expect Bio-Tech to contribute significantly to SSC's revenues and EBITDA, increasing the overall financial health of the company.
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