Simply Solventless third-quarter revenue jumps with CannMart acquisition

Simply Solventless Concentrates Ltd. (TSXV: HASH) reported its third-quarter earnings for the period ending Sept. 30. Revenue rose to C$7.1 million versus last year’s third-quarter revenue of C$1.4 million.

SSC told investors that the latest results include the operations of the CannMart acquisition, which closed on Sept. 12. The results do not include the operations of ANC, which closed on Oct. 18.

CannMart, which is based in Ontario and holds the brands Zest, Roilty and Rilaxe, produces and sells vapes, pre-rolls, concentrates and edible cannabis products.

Net income for the quarter was C$424,446, which was also higher than last year’s net income of C$121,216. The company’s cash grew to C$532,480 versus the C$80,879 at the end of 2023. The As of Sept. 30, the company had total liabilities of C$11.2 million.

“Q3 2024 was another transformational quarter for SSC as we closed an oversubscribed C$3.85 million financing, closed the CannMart acquisition, integrated CannMart’s operations, announced the acquisition of ANC, and again exceeded quarterly guidance,” CEO and President Jeff Swainson said.

For the first nine months of 2024, SSC “increased gross revenue from C$7 million in the fiscal year 2023 to $28.6 million annualized in Q3 2024, a growth rate of 309%,” Swainson said. Normalized net income was C$0.06 per share, annualized.

The company said it would issue guidance on the fourth quarter in the near future.

During the quarter, SSC also exercised its right to accelerate the expiration of approximately 8 million of its remaining common share purchase warrants with an exercise price of C$0.40 per warrant, which were set to expire on July 17, 2026. The move is expected to deliver proceeds of C$3.2 million (assuming all of the remaining C$0.40 warrants are exercised). The company said that following the exercise of the acceleration right, any remaining unexercised C$0.40 warrants will expire on Dec. 21.

The proceeds from the exercise will be used to fund the outstanding promissory note payments pursuant to the acquisition of ANC and for working capital purposes aimed at expanding revenue.