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CALGARY, AB, April 1, 2025 /CNW/ - Simply Solventless Concentrates Ltd. (TSXV: HASH) ("SSC") is pleased to announce the appointment of Thomas Facciolo to the position of Vice President, Continuous Improvement & Product Development with SSC. SSC is also pleased to provide Q1 2025 guidance, including record projected annualized gross revenue of $50.0 million, annualized adjusted EBITDA of $13.2 million, and annualized normalized net income ("NNI") of $12.0 million.
Appointment of Thomas Facciolo as Vice President
SSC is pleased to announce the appointment of Thomas Facciolo as SSC's Vice President, Continuous Improvement & Product Development. Raised in a family business environment, Thomas developed a strong foundation in finance, operations, and data-driven decision-making. Prior to joining SSC, Thomas held senior leadership roles with ANC Inc. ("ANC"), a wholly owned subsidiary of SSC acquired in October 2024, where he spearheaded major transformation programs and led high-performing teams to success. Passionate about continuous learning, Thomas actively mentors emerging leaders and champions collaboration to unlock innovation. As Vice President, Continuous Improvement and Innovation at SSC, Thomas is responsible for shaping and executing enterprise-wide strategies that enhance efficiency, foster a culture of innovation, and deliver measurable value to customers and stakeholders.
Jeff Swainson, President and CEO of SSC, stated: "Since joining through the ANC acquisition, Thomas has added incredible value to our entire organization. The cost efficiencies, product quality, and innovation driven by Thomas have positioned SSC to attain continued organic revenue growth, which is a key value driver for our shareholders."
Q1 2025 Guidance
Mr. Swainson continued: "Overall, revenue continues to expand organically, and due to SSC's integration experience, the Humble Grow Co. acquisition was largely integrated and profitable prior to closing on February 27, 2025. The pending CanadaBis acquisition is expected to close on or about May 2, 2025, and we are collectively developing and implementing plans to ensure that synergies are quickly captured post closing."
Mr. Swainson added: "With our recent acquisitions delivering on expected accretive results, this Q1 2025 guidance reflects further proof of concept of our strategy focused on organic branded revenue growth and opportunistic acquisitions. We thank our shareholders for their continued support as we continue to execute on our impactful business plan."
SSC's Q1 2025 guidance, together with comparisons to Q4 2024 guidance and Q1 2024 actual results, is as follows. Actual results may differ from guidance:
Q1 2025 GUIDANCE(1) |
Q4 2024 |
% |
Q1 2024 |
% TO Q1 |
|
GROSS |
$12.5M ($50.0M annualized) |
$11.8M ($47.2M annualized) |
6 % |
$3.1M ($12.4M annualized) |
303 % |
ADJUSTED |
$3.3M ($13.2M annualized) |
$2.8M ($11.0M annualized) |
20 % |
$0.6M ($2.4M annualized) |
450 % |
NNI(2) |
$3.0 ($12.0M annualized)(3) |
$2.6M ($10.4M annualized) |
15 % |
$0.5M ($2.0M annualized) |
500 % |
(1) |
All amounts in $ millions unless otherwise noted. |
(2) |
See Non-IFRS Financial Measures below. |
(3) |
Equates to $0.10 annual NNI per share using 108,627,799 common shares, 4,859,718 in the money warrants, and 10,269,333 in the money stock options. |
(4) |
See SSC's press release dated November 29, 2024 for Q4 2024 guidance which is available on SSC's SEDAR+ profile at www.sedarplus.ca. |
(5) |
See SSC's financial statements and accompanying management's discussions and analysis for the three months ended March 31, 2024 which are available on SSC's SEDAR+ profile at www.sedarplus.ca. |
SSC's projected consolidated revenue growth is attributable to the organic growth of SSC's brands Astrolab, Frootyhooty, Status, Lamplighter, Roilty, and Zest, and to SSC's acquisitions of CannMart, ANC, and Humble Grow Co. ("Humble", previously Delta 9 Bio-Tech), which was acquired on February 28, 2025, contributing one month of operating results to the Q1 2025 guidance.
Projected consolidated Q1 2025 net income and comprehensive income is approximately $9.4 million including an anticipated $7.0 million bargain purchase gain on acquisition of Humble which closed on February 28, 2025 and which will be reported in the financial results for the period ended March 31, 2025. The expected bargain purchase gain is anticipated and actual results may differ from this estimate. The anticipated bargain purchase gain has been excluded from the determination of adjusted EBITDA and NNI of $3.3 million and $3.0 million, respectively. See Non-IFRS Financial Measures below.
SSC's streak of positive adjusted EBITDA and NNI is expected to extend to eleven and nine consecutive financial quarters respectively.
Continued Rationalization and Cost Savings
The guidance and reported results above include the consolidated operations of SSC and its wholly owned subsidiaries Massive Hash Factory Ltd., CannMart Inc. (acquired on September 12, 2024), and ANC (acquired on October 18, 2024, effective October 1, 2024), and Humble (acquired on February 28, 2025, adding 1 month of operating result in the Q1 2025 Guidance). SSC is continuing to capture synergies in respect of these acquisitions to further reduce costs.
Past Guidance Versus Actuals
SSC exceeded Q2 2024 and Q3 2024 guidance as reflected in the comparison of SSC's annualized guidance to reported amounts for the periods below (Q4, 2024 actual results will be publicly available on or before April 30, 2025):
Q1 2025 |
Q4 2024(5) |
Q3 2024(4) |
Q2 2024(3) |
|
ANNUALIZED GROSS REVENUE |
$50.0M |
$47.2M |
$28.0M |
$16.0M |
REPORTED GROSS REVENUE, |
Due May 31, |
Due April |
$28.8M |
$16.8M |
ANNUALIZED ADJUSTED EBITDA |
$13.2M |
$11.0M |
$4.0M |
$3.6M |
REPORTED ADJUSTED EBITDA, |
Due May 31, |
Due April |
$4.0M |
$4.0M |
ANNUALIZED NNI GUIDANCE(1)(2) |
$12.0M |
$10.4M |
$3.6M |
$3.6M |
REPORTED NNI, ANNUALIZED(1)(2) |
Due May 31, |
Due April |
$3.6M |
$3.6M |
(1) |
All amounts in $ millions unless otherwise noted. |
(2) |
See Non-IFRS Financial Measures below. |
(3) |
See SSC's press release dated May 27, 2024 for SSC's Q2 2024 guidance and SSC's interim consolidated financial statements and accompanying management's discussions and analysis for the three and six months ended June 30, 2024 which are available on SSC's SEDAR+ profile at www.sedarplus.ca. |
(4) |
See SSC's press release dated September 17, 2024 for SSC's Q3 2024 guidance and interim consolidated financial statements and accompanying management's discussions and analysis for the three and nine months ended September 30, 2024 which are available on SSC's SEDAR+ profile at www.sedarplus.ca. |
(5) |
See SSC's press release dated November 29, 2024 for SSC's Q4 2024 guidance which is available on SSC's SEDAR+ profile at www.sedarplus.ca. |
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 SSC's expected results for Q1 2025, continued organic revenue growth, the continued synergies expected from integrating CannMart Inc., ANC, and Humble into SSC's operations, capitalizing on SSC's business plan 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. 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, adjusted EBITDA and NNI 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 "adjusted EBITDA" and "normalized net income", which are not defined under International Financial Reporting Standards (IFRS). The intent of these non-IFRS measures is to provide additional useful information to investors and analysts. These non-IFRS measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other entities. As such, these non-IFRS measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS.
Adjusted EBITDA is calculated as income before interest, taxes, depreciation and amortization expenses. Adjusted 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. Adjusted 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).
NNI is calculated as net income less any gain settlement or disposal, plus any restructuring costs and the share compensation expense. NNI is considered as a useful measure by management of SSC to understand the profitability of SSC excluding the effects of certain non-operating items.
See the "Operations" section in SSC's management's discussion & analysis for the periods Q1 2024, Q2 2024 and Q3 2024, available on SEDAR+ at www.sedarplus.ca, for a quantitative reconciliation of net income to adjusted EBITDA for such periods, which information is incorporated by reference in this press release and also shown below inclusive of a reconciliation of EBITDA, adjusted EBITDA and NNI for the most recent Q1, 2025 guidance which is derived from an estimate of operating results for the three month period ended March 31, 2025, which will be filed publicly on or before May 31, 2025, and until then subject to change.
Reconciliation of Non-GAAP Measures
CURRENT AND PRIOR GUIDANCE Three months ended |
||||
Mar 31, 2025 $ |
Mar 31, 2024 $ |
Dec 31, 2024 $ |
||
Net income and comprehensive income |
9,436,000 |
502,536 |
2,550,000 |
|
Add back: |
||||
Depreciation and amortization |
140,000 |
13,234 |
75,000 |
|
Net interest (income) expense |
160,000 |
51,832 |
75,000 |
|
EBITDA |
9,736,000 |
567,602 |
2,700,000 |
|
Add / (deduct): |
||||
Transaction costs |
395,000 |
- |
- |
|
Bargain purchase gain on Humble acquisition |
(7,000,000) |
- |
- |
|
Share compensation expense |
169,000 |
43,969 |
50,000 |
|
Adjusted EBITDA |
3,300,000 |
611,571 |
2,750,000 |
|
Deduct: |
||||
Depreciation and amortization |
(140,000) |
(13,234) |
(75,000) |
|
Net interest (income) expense |
(160,000) |
(51,832) |
(75,000) |
|
Normalized Net Income |
3,000,000 |
546,505 |
2,600,000 |
|
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.

Simply Solventless Concentrates Ltd., Jeff Swainson, President and CEO, Phone: 403-796-3640, Email: [email protected]
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