Simply Solventless Concentrates Ltd. (TSX-V: HASH), creator of the Frootyhooty and Astro Lab brands, has added another product line to its portfolio by acquiring the vape and infused pre-roll producer Lamplighter.
The Canadian cannabis company announced Wednesday that it had paid C$600,000 for the brand. The deal will add up to 21 additional products to the Simply Solventless catalogue.
Lamplighter’s product line includes “Lychee Bubble Tea” and Tiger Berry flavoured distillate-infused joints. Pineapple Coconut Escape, Saskatoon Berry and Tutti Frutti vape cartridges are also listed on the brand’s menu.
“With projected 2023 Lamplighter gross revenue of C$6.8 million, and similar revenue projected for 2024, we believe the acquisition will contribute value to our shareholders,” Jeff Swainson, Simply Solventless CEO, said.
Simply Solventless says it expects to complete its first Lamplighter sales next month and fully integrate the brand into its business by May.
The company said the deal will provide it with sales access in British Columbia, a provincial market Simply Solventless is not currently active in. It will also help diversify the company’s portfolio through the introduction of Lamplighter’s high potency products.
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Company boasts strong balance sheet
Despite many cannabis companies struggling financially, Simply Solventless (SSC) says it has increased its revenue every year since 2021.
“Despite these headwinds, over the past year and a half SSC has built an incredible team, developed a portfolio of fantastic cannabis products, launched two successful brands and increased our revenue by 900 per cent,” Jeff Swainson, President and CEO of SSC, said last month.
“We have also achieved net income profitability and reduced our debt from C$9.1 million to zero.”
However, the company’s latest corporate presentation says it had C$3.6 million in current liabilities at the end of September last year. That number represents a 9.8 per cent rise from Q1.
As of the end of Q3 last year, Simply Solventless had assets valued at C$5.4 million and working capital of C$1.75 million.
The company generates about C$43,000 per month alone from each product it sells in Alberta. SSC currently distributes merchandise in Ontario and Saskatchewan too.
Frootyhooty and Lamplighter are primarily concerned with distillate-infused pre-rolls and vapes while Astro Lab makes live rosin, hash and concentrates.
rowan@mugglehead.com
