Simply Solventless Provides Update on Humble Grow Co. Retrofit & Status of Past Acquisition Integrations and Cost Savings

Core Insights - Simply Solventless Concentrates Ltd. (SSC) is enhancing its cultivation facility through a retrofit by its subsidiary Humble Grow Co., which is expected to significantly increase revenue and EBITDA [2][6]. Humble Retrofit - The retrofit involves the installation of LED lights and other improvements, with a total capital cost of approximately $2.5 million, netting to $1.5 million after government rebates [2]. - Once the retrofit is fully operational by early Q3 2026, SSC anticipates an increase in annual gross revenue by $17.5 million to $29.5 million, resulting in total revenue projections of $53.5 million to $65.5 million [2][3]. - The adjusted EBITDA is expected to rise by $6.5 million to $14.5 million, reaching a range of $10.7 million to $18.7 million [2][5]. Market Expansion - SSC plans to maintain a balanced sales mix of 50% B2B and 50% CPG (consumer packaged goods) post-retrofit, targeting both domestic and international markets [3][7]. - The company has set pricing for saleable cannabis flower at $3.00 per gram for CPG, $1.60 for Canadian B2B, and $1.90 for international B2B [7]. Acquisition Integration & Cost Savings - SSC has completed four acquisitions over the past 18 months, achieving significant cost savings, including a reduction in headcount by 45% and payroll costs by 44%, amounting to $7.8 million annually [6][8]. - The integration of these acquisitions is substantially complete as of December 2025, contributing to operational efficiencies [6]. Financial Projections - The company’s financial projections indicate a corporate growth of 49% to 82% in gross revenue and a growth of 155% to 345% in adjusted EBITDA post-retrofit [5][6]. - The annualized adjusted EBITDA per share is projected to increase from $0.09 to $0.16 depending on the case scenario [5].