Simply Solventless to acquire pre-roll maker for $13.5 million

Simply Solventless Concentrates Ltd. (TSXV: HASH) entered into a definitive share purchase agreement to acquire all shares of ANC Solutions, a privately owned pre-roll and white label manufacturer.

The deal, valued at up to $13.5 million, aims to combine SSC’s positioning with ANC’s operational chops and intellectual property, the company said.

“We are thrilled to announce the foundational acquisition of ANC, continuing our strategy of profitable organic revenue growth and opportunistic acquisitions,” SSC president and CEO Jeff Swainson said in a statement. “ANC holds significant intellectual property, some of which is patented, and they have garnered industry wide respect for their execution ability.”

ANC, which specializes in “crafting traditional, cigarette-style” blunts and infused pre-rolls, brings meaningful production capacity to the table. The company can produce up to 5 million pre-rolls monthly and holds several patents.

“SSC can leverage ANC pre-roll capability to maximize the sales of its five pre-roll brands, including Astrolab, Frootyhooty, Lamplighter, Roilty and Zest,” the company said.

SSC projects a 96% increase in gross revenue, from $28 million annualized in the third quarter of 2024 to $55 million proforma annualized in the fourth quarter of 2024. Additionally, SSC expects a 163% increase in adjusted EBITDA and a 178% rise in normalized net income over the same period.

SSC is accelerating the expiry of about 15 million outstanding common share purchase warrants, with expectations to raise up to $3 million. The company plans to use those proceeds, along with cash on hand and cash flow from operations, to finance the deal.

Clayton Bordeniuk, president & CEO of ANC, said the partnership would allow the companies to “leverage our operational expertise and SSC’s broad network to drive continued innovation.”

The latest deal follows SSC’s recent purchase of CannMart Inc., which closed earlier this month.