CALGARY, AB – Simply Solventless Concentrates Ltd. (“SSC”) reported its Q3 2024 results, including gross revenue of $7,175,617, adjusted EBITDA of $1,004,542, and normalized net income (“NNI”) of $923,479. Year to date (“YTD”), SSC generated annualized NNI of $0.06 per share.
SSC’s Q3 2024 results are the first quarter to include the operations of CannMart Inc., the acquisition of which closed on September 12, 2024; however, they do not include the operations of ANC Inc., the acquisition of which closed on October 18, 2024.
SSC also exercised its right to accelerate the expiry of approximately 8,000,000 of SSC’s remaining common share purchase warrants that have an exercise price of $0.40 per warrant, which are currently set to expire on July 17, 2026, for expected proceeds of up to approximately $3.2 million (assuming all of the remaining $0.40 Warrants are exercised). Following the exercise of the Acceleration Right, any remaining unexercised $0.40 Warrants will expire on December 21, 2024.
The proceeds from the exercise of the $0.40 Warrants 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.
Jeff Swainson, President & CEO of SSC, stated: “Q3 2024 was another transformational quarter for SSC as we closed an oversubscribed $3.85 million financing, closed the CannMart acquisition, integrated CannMart’s operations, announced the acquisition of ANC, and again exceeded quarterly guidance. In the last three quarters we have profitably increased gross revenue from $7.0 million in the fiscal year 2023 to $28.6 million annualized in Q3 2024, a growth rate of 309%, with annualized Q3 2024 NNI of $0.06 per share. More importantly, we are working hard to achieve another strong quarter in Q4 2024, which will include the operations of both CannMart and ANC. We will issue Q4 2024 guidance in the near future.”
Q3 2024 Financial Highlights
- Q3 2024 YTD Annualized NNI per Share: For the nine months ended September 30, 2024, annualized NNI per common share of $0.06 (six months ended June 30, 2024, annualized NNI per common share – $0.06). As noted, these results do not include the operations of ANC.
- Q3 2024 Gross Revenue: $7,175,617 (Q2 2024 – $4,232,663), an increase of 70%.
- Q3 2024 Net Revenue: $4,948,898 (Q2 2024 – $2,902,206), an increase of 71%.
- Q3 2024 Gross Margin: $1,963,180 (Q2 2024 – $1,720,920), an increase of 14%.
- Q3 2024 Adjusted EBITDA: $1,004,542 (Q2 2024 – $952,986), an increase of 5%.
- Q3 2024 NNI: $923,479 (Q2 2024 – $890,815), an increase of 4%.
- Q3 2024 Working Capital: $11,610,122 (Q2 2024 – $5,909,655), an increase of 96%.
- Q3 2024 Inventory Turnover: 0.84x (Q2 2024 – 0.43x), an improvement of 95%.
- Q3 2024 Current Ratio: 2.39x (Q2 2024 – 1.74x), an improvement of 37%.
- Q3 2024 Corporate Highlights:
- CannMart Acquisition: On June 25, 2024, SSC announced the acquisition of CannMart. On September 12, 2024, SSC closed the acquisition of CannMart.
- $0.25 Unit Financing: On July 16, 2024, SSC closed an over subscribed financing, issuing 15,400,000 units, each unit comprised of one common share and one-half of one common share purchase warrant, at a price of $0.25 per unit for gross proceeds of $3,850,000.
- ANC Inc. Acquisition: On September 26, 2024 SSC announced the acquisition of ANC. On October 18, 2024, SSC closed the ANC acquisition.
- Warrant Exercises: On October 28, 2024 SSC announced that approximately 14,844,910 warrants expiring in August 2026 had been exercised, or were in the process of being exercised, for proceeds of $2,968,982.
About Simply Solventless Concentrates Ltd.
SSC is a public company incorporated under the Business Corporations Act (Alberta). SSC’s mission is to provide pure, potent, terpene-rich ready to consume cannabis products to discerning cannabis consumers.
