Simply Solventless Concentrates Ltd., a Calgary-based company (TSXV HASH), (OTC SSCLCF), announced on Friday that it had completed its acquisition of Delta 9 Bio-Tech Ltd. for C$3,000,000 in cash.
A press release stated that Simply Solventless paid a C$750,000 deposit in January towards the purchase price. The remainder was then made this week. Simply Solventless signed a 10-year lease for the Biotech facility in Manitoba with an “arm’s-length” party as soon as it was completed.
Humble Grow Co. is the new brand name of this latest addition to Simply Solventless.
According to the press release, the acquisition gives Simply Solventless an 98,000 square-foot facility with a production capacity of between 8,000 and 9,000 kilograms annually of dried marijuana. Simply Solventless is confident that this can increase to as much as 15,000-18,000 kg per year depending on future infrastructure investments of C$4,000,000.
Bio-Tech has served the market of Humble Grow Co. OntarioIn a release, the company noted that the wholesale cannabis markets in Canada and internationally, as well the Maritimes and Alberta were also included.
Simply Solventless noted further that by vertically integrating its supply chain it would be less dependent on suppliers outside for cannabis biomass. It said that the company’s demand for raw cannabis biomass increased dramatically after it purchased preroll manufacturer ANC Solutions last year. Simply Solventless acquired CannMart Inc. and retailer CannMart Inc. in the same year.
Humble Grow Co. also expects to assist Simply Solventless in lowering the price per gram of cannabis to C$0.50-C$0.70, according to the company. This would make it “amongst the lowest indoor cannabis cultivation costs”. Canada.”
It also forecasts that the company will maintain its current market average price of C$1.11 for a gram cannabis. This price might even rise through international exports or “other measures,” the company said.
Simply Solventless estimated that this purchase would also allow them to reduce their manufacturing and administrative costs by C$750,000.
Simply Solventless’ CEO Jeff Swainson described the Humble Grow Co. deal as a “significant landmark”.
Swainson added that, although the operational integration is almost complete for Bio-Tech, the company continues to look at other acquisition targets.