Simply Solventless Announces Acquisition of Brand Uncommon Cannabis Co., Provides Commercial Update, and Announces Conversion of $1.0 Million Promissory Notes to Equity at $0.20/Unit

Acquisition and Strategic Expansion - Simply Solventless Concentrates Ltd. (SSC) has announced the acquisition of Uncommon Cannabis Co., a dried flower and preroll brand, which is expected to enhance SSC's market presence and revenue streams [2][3][7] - The acquisition will allow SSC to enter the Canadian recreational dried flower and regular preroll markets, complementing its existing B2B sales channels [3][7] - Uncommon generated approximately $1.8 million in gross revenue during 2025, primarily through third-party sales, with 65% of its revenue coming from the Quebec market [4][7] Financial Strengthening - SSC has entered into an agreement to convert $1.0 million of promissory notes to equity at $0.20 per unit, significantly improving its balance sheet [2][28][31] - The purchase price for Uncommon is approximately $200,000 net of working capital, which includes around $100,000 in net working capital [8][9] Sales Performance and Growth Strategy - SSC's retail CPG sales velocity has increased from approximately $0.6 million per week to $1.0 million per week over the past two fiscal years, indicating strong growth potential [13][11] - The company has identified areas for improvement and is implementing a robust commercial plan to achieve meaningful growth across several product categories [12][13] Brand Strategy and Portfolio Realignment - SSC is undergoing a structural realignment of its brand strategy to enhance focus and execution, particularly for its legacy brands that have faced performance pressure [23][25] - The company aims to simplify its brand portfolio, ensuring each brand has a defined consumer target and strategic purpose, supported by a strong sales team [24][27] Market Position and Future Outlook - The acquisition of Uncommon is expected to accelerate SSC's entry into new markets and provide an existing revenue stream, which is crucial for the company's growth strategy [7][11] - SSC's President & CEO expressed optimism about the company's outlook for 2026, highlighting the importance of developing adequate markets and sales channels for increased production [11][31]