- It has been one year since Hill Street’s acquisition of the usage rights to DehydraTECH™
- The acquisition has fueled a 129 per cent increase in gross profit for the quarter and a 13 per cent increase in profit margin over fiscal 2020
- The B2B licensing model does not require the levels of product inventory and working capital investment required to operate its legacy beverage business
- Hill Street Beverage Company is a progressive non-alcoholic beverage and cannabis solutions company
- Hill Street Beverage Company Inc. (TSXV:BEER) opened trading at C$0.045
It has been one year since Hill Street’s (BEER) acquisition of the usage rights to DehydraTECH™ fast-acting cannabinoid delivery system technology.
Craig Binkley, Co-CEO of Hill Street, sat down with Caroline Egan to provide an update.
“Even at this early stage, the transformative power of the DehydraTECH™ licensing business on financial performance is very evident delivering extremely favourable margin contribution and the abundant potential to pursue global scale over time. Recent fiscal Q1 2022 reporting showed a 129 per cent increase in gross profit for the quarter, versus the same quarter one year ago, fueling a 13 per cent increase in gross profit margin from the prior year.
The B2B licensing model also fundamentally changes other key financial metrics, as it does not require the levels of product inventory and working capital investment that are required to operate our legacy alcohol-free beverage business”.
During the second half of fiscal 2021, the company focused on expanding existing licensing relationships for DehydraTECH™ with companies operating commercially in California, Colorado, Illinois, Massachusetts, and Oklahoma.
These states are expected to represent $12.9B in cannabis sales in 20211.
The progress in this first year following the acquisition of DehydraTECH™ IP rights has been formidable, and the opportunity for future growth is clear.
Hill Street Beverage Company is a progressive non-alcoholic beverage and cannabis solutions company.
Hill Street Beverage Company Inc. (TSXV:BEER) opened trading at C$0.045.