Company Announcements

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CALGARY, AB , April 22, 2025 /CNW/ - Simply Solventless Concentrates Ltd. (TSXV: HASH) ("SSC") is pleased to announce that profitability at Humble Grow Co. ("Humble") has been achieved and that initial post integration Humble results are exceeding projections. SSC views this achievement as further proof of concept of its strategy focused on organic revenue growth and acquisitions. SSC also announces that it will release its 2024 audited annual financial results on April 30, 2025. 

Initial Humble Results 

SSC has completed the integration of its wholly owned subsidiary, Humble, acquired on February 28, 2025. Overall, total Humble operating expenses have been reduced by 40% from approximately $12.5 million annualized to approximately $7.2 million annualized in April 2025 while maintaining annualized production levels of approximately 9,000 kilograms ("KG") of cannabis per year. SSC is observing strong demand for the cannabis produced from the Humble facility both domestically and internationally.

In March 2025, the first month of operations post closing, Humble generated gross revenue of approximately $933,000 ($11.2 million annualized) against total expenses of approximately $670,000 ($8.0 million annualized), resulting in EBITDA of approximately $266,000 ($3.2 million annualized). EBITDA is a non-IFRS measure – see "Non-IFRS" measures below. 

During April 2025, monthly operations and general and administration expenses are expected to be reduced by $72,000 ($0.9 million annualized), further reducing expected Humble expenses from $8.0 million annualized in March 2025 to $7.2 million annualized in April 2025. This further expense reduction increases expected monthly EBITDA to approximately $338,000 in April 2025 ($4.1 million annualized), 64% higher than the $2.5 million that was originally projected in SSC's press release dated February 28, 2025.

Based on historical run rates, we believe that these results will be repeated moving forward.   

Jeff Swainson, President and CEO of SSC, stated: "The Humble acquisition is proving to be fruitful, and I would like to thank our talented team, led by Murray Brown, Chief Operating Officer, Thomas Facciolo, Vice President, Continuous Improvement, Alexa Goertzen, Sales & Operations Manager, Bobby Bains, Cultivation Manager, and Rebecca Pedneault, Production Manager for their incredible efforts in turning the Humble asset into one of our most profitable divisions. In our press release dated February 28, 2025, SSC projected 8,000KG to 9,000KG of annual production at the Humble facility and $2.5 million post integration EBITDA per year, and current run rates are approximately 9,000KG and $4.1 million EBITDA per year. Furthermore, SSC has data from two years of cultivation results achieved with the retrofit equipment and setup that indicates that production capacity and EBITDA can be increased by 100% with modest capital investment. To say that we are encouraged by these results and the strong potential of this asset moving forward would be an understatement."

Overall Results of Acquisitions

One of SSC's core competencies is the integration of acquisitions. This core competency drives material rationalization and the capture of synergies, and it has resulted in all of SSC's acquisitions to date achieving profitability either prior to closing or shortly afterward. All of SSC's past acquisitions, including Lamplighter, CannMart Inc., ANC Inc., and Humble are currently contributing to profitability.

SSC also expects that the acquisition of CanadaBis Capital Inc. ("CanadaBis"), which was announced on March 12, 2025, could further enhance the profitability of both companies due to strong operational synergies and complimentary teams. The CanadaBis shareholder meeting will take place on April 28, 2025, and the transaction is expected to close on or around May 5, 2025.   

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. For more information regarding SSC, please see www.simplysolventless.ca. 

Notice on Forward Looking Information

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "will", "estimates", "believes", "intends", "expects", "projected", "approximately" and similar expressions which are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements concerning the release date of its 2024 annual financials, the closing of the CanadaBis acquisition, the profitability of CanadaBis and SSC following closing of the acquisition of CanadaBis, improving the EBITDA and production capacity at the Humble facility, and SSC's expected growth, results of operations and performance. SSC cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of SSC, including expectations and assumptions concerning SSC, the timing and market acceptance of products, competition in SSC's markets, SSC's reliance on customers, fluctuations in interest rates, SSC's ability to maintain good relations with its customers, employees  and other stakeholders, changes in law or regulations, SSC's ability to protect its intellectual property, as well as other risks and uncertainties, including those described in SSC's filings available on SEDAR+ at www.sedarplus.ca, including its most recent annual information form. The reader is cautioned that assumptions used in the preparation of any forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of SSC. The reader is cautioned not to place undue reliance on any forward-looking statements. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this press release are made as of the date of this press release, and SSC does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.

Future Oriented Financial Information

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about gross revenue, EBITDA, expenses and net income of SSC, which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about SSC's future business operations. SSC and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, SSC's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. SSC disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Differences in the timing of capital expenditures or revenues and variances in production estimates can have a significant impact on the key performance measures included in SSC's guidance. SSC's actual results may differ materially from these estimates.

Non-IFRS Financial Measures

This press release includes references to "EBITDA", which is not defined under International Financial Reporting Standards (IFRS). The intent of this non-IFRS measure is to provide additional useful information to investors and analysts. This non-IFRS measure does not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other entities. As such, this non-IFRS measure should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS.

EBITDA is calculated as income before interest, taxes, depreciation and amortization expenses. EBITDA is considered a useful measure by management to understand profitability excluding the effects of capital structure, taxation and depreciation, but may not be appropriate for other purposes. EBITDA is not defined under IFRS and therefore should not be considered an alternative to, or more meaningful than net income (loss) and comprehensive income (loss).

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Simply Solventless Concentrates Ltd.