- Simply Solventless Concentrates (TSXV:HASH) announced a significant milestone with the achievement of profitability at its wholly owned subsidiary, Humble Grow Co.
- The initial post-integration results have exceeded projections, supporting its strategy focused on organic revenue growth and acquisitions
- The team views the profitability and operational efficiency achieved at Humble as further proof of concept for its strategy
- Simply Solventless stock (TSXV:HASH) last traded at $0.56
Simply Solventless Concentrates (TSXV:HASH) announced a significant milestone with the achievement of profitability at its wholly owned subsidiary, Humble Grow Co. The initial post-integration results have exceeded projections, supporting its strategy focused on organic revenue growth and acquisitions.
Key achievements
- Integration success: The company completed the integration of Humble Grow Co., acquired on February 28, 2025. The integration has led to a substantial reduction in operating expenses while maintaining production levels.
- Expense reduction: Total operating expenses at Humble have been reduced by 40 per cent, from approximately $12.5 million annualized to approximately $7.2 million annualized as of April 2025.
- Production levels: Despite the reduction in expenses, Humble has maintained an annualized production level of approximately 9,000 kilograms of cannabis per year.
Financial performance
- March 2025 results:
- Gross revenue: Approximately $933,000 ($11.2 million annualized)
- Total expenses: Approximately $670,000 ($8.0 million annualized)
- EBITDA: Approximately $266,000 ($3.2 million annualized)
- April 2025 projections:
- Expense reduction: Monthly operations and general and administration expenses are expected to be reduced by an additional $72,000 ($0.9 million annualized).
- Total expenses: Expected to decrease from $8.0 million annualized in March 2025 to $7.2 million annualized in April 2025.
- EBITDA: Expected to increase to approximately $338,000 in April 2025 ($4.1 million annualized), 64 per cent higher than the $2.5 million originally projected.
Market demand
Simply Solventless is observing strong demand for the cannabis produced at the Humble facility, both domestically and internationally. This demand is a testament to the quality and consistency of Humble’s products.
Business outlook
The team views the profitability and operational efficiency achieved at Humble as further proof of concept for its strategy. The company believes that these results will be sustainable moving forward, based on historical run rates.
More will be revealed when the company releases its 2024 audited annual financial results on April 30, 2025.
Leadership insights
The company’s president and CEO, Jeff Swainson, said in a news release that the he Humble acquisition is proving to be fruitful in turning the asset into one of its most profitable divisions.
“[The company] 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,” he said.
About Simply Solventless Concentrates
Simply Solventless Concentrates provides pure, potent, terpene-rich and ready-to-consume products to discerning cannabis consumers.
Simply Solventless stock (TSXV:HASH) last traded at $0.56 and has climbed 160.47 per cent since this time last year.
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(Top photo via Simply Solventless Concentrates.)