Alberta-based Simply Solventless Concentrates Ltd. (TSXV: HASH) announced Tuesday a $5 million convertible debenture financing package, including a $3 million lead investment from institutional investor Plaza Capital.
The cannabis producer said that the financing will primarily fund its previously announced acquisition of Delta 9 Bio-Tech Inc., which is expected to close in early February. It’s a continuation of an aggressive growth strategy that saw Simply Solventless complete three acquisitions in 2024, including CannMart Inc. in September and ANC Inc. in October.
Simply Solventless reported expected January revenue of approximately $4.5 million, excluding revenue from the pending Bio-Tech acquisition. It extends a growth streak that saw fourth-quarter 2024 revenue reach C$11.8 million – a 556% increase from the same period the previous year.
The company also unveiled plans to launch 25 new cannabis products in the Alberta and Ontario recreational markets between February and April.
“It was important to fund the Bio-Tech acquisition in a manner that limited dilution such that we could maximize earnings per share,” Jeff Swainson, Simply Solventless president and CEO, said in the statement. He noted the financing terms include a conversion price of $1 per share and warrant exercise price of $1.20, representing premiums of 30% and 56% respectively above the company’s recent trading average.
The debenture units carry an 11% annual interest rate payable quarterly and mature in 48 months, according to the company. Each $1,000 unit includes warrants exercisable into company shares at $1.20 per share over a four-year period.
The company’s product expansion focuses heavily on infused pre-rolls and blunts, leveraging manufacturing capabilities acquired through its October purchase of ANC Inc. New offerings will span across Simply Solventless’s brand portfolio including Astrolab, Frootyhooty, Lamplighter and Zest.
Planned launches include specialized cannabis products like “Moon Dusted” infused pre-rolls in various flavors, live rosin concentrates, and diamond-coated blunts. The company also plans to introduce cannabis-infused beverages through its Frootyhooty brand.
The financing deal remains subject to TSX Venture Exchange approval. Simply Solventless noted that no binding agreement has been finalized and the transaction may not complete as described.
[[{“value”:”The latest financing round follows string of record quarters for the producer, as it eyes more expansion.
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