Simply Solventless Concentrates (TSXV: HASH) – Stock Profile

Price at time of writing: 67 cents (27 April 2025).

Quick Take

• Breakout Growth: SSC’s revenue surged ~3.3× in FY2024 (to an estimated ~$22M from ~$6.2M in FY2023​ as strategic acquisitions and new product launches drove explosive sales gains. The stock jumped 420% in 2024, earning SSC a spot on the 2025 TSX Venture 50™ (ranked 14th)​.

• Profitability & Guidance: After rapid scaling, SSC turned profitable. It projects record Q1 2025 revenue of $12.5M and normalized net income of $3.0M ($0.10/share) – a rare feat among cannabis micro-caps. Actual Q1 net income (including a one-time gain) is forecast at ~$9.4M​, underscoring strong early integration of recent acquisitions.

• Why Now: Simply Solventless is emerging as a leader in cannabis concentrates. It’s fresh off transformative deals that make it the #2 concentrates producer in Canada, with scale and profitability that set it apart in a struggling sector. Yet the stock trades at single-digit forward P/E based on guidance, suggesting potential value if targets are met.

What They Do

Simply Solventless Concentrates Ltd. (“SSC”) produces cannabis extracts and derivative products – specializing in solventless concentrates like rosins and hash. The company cultivates, processes, and sells terpene-rich cannabis products for Canada’s recreational, medical, and B2B markets. Solventless concentrates (made without chemical solvents) cater to quality-focused consumers seeking a pure, potent terpene experience. In essence, SSC is carving out a niche in premium cannabis extracts and pre-rolls, operating from its facilities in Alberta (recently rebranded as “Humble Grow Co.” after an acquisition). The company was founded in 2020 and is headquartered in Calgary​.

Recent Moves: SSC has rapidly expanded via acquisitions. In late 2024 it acquired ANC Inc. (edibles) and Delta 9 Bio-Tech (cultivation assets), and in March 2025 announced an all-share deal to acquire CanadaBis Capital (Stigma Grow)​. These deals give SSC vertical integration (from cultivation to concentrates) and increased product breadth (including infused pre-rolls). Upon closing the CanadaBis deal, SSC will be the #2 concentrate and #5 pre-roll supplier in Canada (ex-Quebec)​. This roll-up strategy aims to build critical mass in a fragmented cannabis market.

Why It Stands Out

• Explosive Growth & Scale: SSC’s revenue is scaling dramatically, up 79% year-over-year​ (organically and via M&A). Q4 2024 sales hit $11.8M (556% YoY growth)​, and Q1 2025 is guided even higher. This makes SSC one of the fastest-growing micro-cap cannabis companies. Few peers its size approach a ~$50M annualized revenue run-rate​.

• Early Profitability: Unlike many small cannabis firms operating at a loss, SSC is already posting positive net income. It achieved ~$0.42M net profit in Q3 2024​ and projects $3M normalized net profit in Q1 2025​. Management’s focus on lean operations and accretive deals means 10%+ net margins (TTM net margin ~10%​) even as it scales. Proven profitability de-risks the story.

• Accretive M&A & Market Position: SSC’s acquisitions appear highly accretive, adding immediate revenue and EBITDA. The CanadaBis (Stigma Grow) merger, for example, is set to boost pro forma revenue per share by ~65%. These deals also give SSC a Top-2 market share in concentrates and a strong foothold in premium brands, setting it apart from generic cannabis producers. SSC is now one of the few profitable consolidators in a “capital-starved industry” ripe for consolidation​.

• Undervalued vs. Growth: Despite its growth, SSC’s valuation looks reasonable. The stock trades around 0.7× PEG (price/earnings-to-growth) based on forward estimates. Trailing P/E is high (~54​) due to early-stage earnings, but on a forward basis P/E ~6–7 (and EV/EBITDA ~5–6×) using management’s FY2025 run-rate guidance. This is cheap relative to peers trading at double-digit multiples for lower growth. If SSC delivers on guidance, there’s a case for multiple expansion.

• Insider Alignment: Insiders own about 20% of the company​, and management has been actively buying growth (via share-based deals and warrant exercises) alongside outside investors. The CEO, Jeff Swainson, appears focused on shareholder value, highlighting ROI on acquisitions and even up-listing SSC to TSXV Tier 1 status in late 2024 (a sign of maturity). Strong insider ownership and recent warrant conversions provided ~$3M cash​, which aligns incentives and strengthens the balance sheet for growth.

Financial Highlights

• Revenue Rocketing: SSC’s sales have skyrocketed over the past year. Quarterly revenue jumped from $1.8M in Q4 2023 to $11.8M in Q4 2024​, and further to a projected $12.5M in Q1 2025​. That’s sequential growth of 64% QoQ in Q4​. Trailing-twelve-month (TTM) revenue was ~$11.5M as of Q3 2024, but the annual run-rate now exceeds $50M based on the latest quarter​ – a dramatic step-up driven by acquisitions and organic expansion (new product SKUs, broader distribution). ​

• Earnings & Margins: SSC has transitioned from near break-even to solid profitability. Net income was $2.15M for the first 9 months of 2024​, and Q4 2024 alone is projected to add ~$2.9M​ (bringing estimated FY2024 net income to ~$5M). Gross margin is ~46%​, reflecting the high-value nature of concentrates, and TTM net margin ~10%. Notably, Q4 2024 guidance implied an even higher normalized net margin of ~25% (excluding one-offs)​. EBITDA is positive and rising quickly with scale – Q4 2024 adjusted EBITDA was ~$3.0M​. This margin profile is well above industry average, as many small cannabis firms are still at negative margins.

• Balance Sheet & Cash Flow: SSC appears to be in decent financial health. Debt is minimal at ~$3.8M total (debt-to-equity ~17%​) and the company had positive working capital (boosted by recent financings). In early 2025, SSC raised $6M via convertible debentures​ and exercised warrants for ~$3M​, bolstering its cash reserves to fund the CanadaBis acquisition and expansion. With new acquisitions contributing to cash flow, SSC expects to finance growth internally moving forward. (Notably, CanadaBis itself had 13 straight quarters of positive EBITDA​, indicating the acquired operations should strengthen consolidated cash flow.)

• Valuation Metrics: At ~CA$0.67 per share, SSC’s market cap is ~CA$70M​ and enterprise value ~CA$76M. This values the stock at EV/Sales ~1.5× on forward revenue (using ~$50M run-rate) – quite low for a company growing this fast. Trailing P/E is ~50 (TTM EPS ~$0.01​), but forward P/E ~6–8 based on the $0.10 EPS guidance​. The chart below compares SSC’s valuation to a few peers:

• Return on Equity: SSC’s ROE is in the high single digits (rough estimate ~8–10% for 2024), reflecting its small equity base and transitional earnings. As recent acquisitions’ earnings kick in, ROE could improve. Importantly, SSC achieved these returns with modest leverage and without dilutive equity financings in the open market (growth has been funded through internal cash generation and targeted debt).

• Insider Ownership & Activity: Insiders hold roughly 20% of outstanding shares​, indicating strong alignment. There has been dilution in the past year (shares +35% YoY due to M&A share issuance and warrant exercises​), but these moves were strategic – expanding the business and bringing in new capital. No red flags in insider selling have been noted; if anything, management appears bullish (e.g. insiders rolling their equity in acquisitions and taking stock compensation).

Risks & Red Flags

• Integration & Dilution Risk: SSC’s rapid expansion via multiple acquisitions poses integration challenges. Merging different corporate cultures and operations (cultivation at Humble, manufacturing at Stigma Grow, etc.) is complex. There’s a risk that projected synergies or cost savings may take longer to realize. Additionally, growth has come with share dilution – shares outstanding jumped ~35% in one year to fund deals. Further M&A or aggressive expansion could require more capital (or debt), potentially diluting existing shareholders or straining the balance sheet if not managed carefully.

• Execution vs. Expectations: The company’s bullish guidance (e.g. $50M annualized revenue, $12M normalized profit​) sets high expectations. Missing these targets – due to integration hiccups, competition, or any downturn – could disappoint investors. Notably, a large portion of recent profit comes from a one-time “bargain purchase” accounting gain. Excluding such items, true operating earnings might be lower. If sales growth stalls or margins compress, SSC’s premium valuation (on a trailing basis) could be at risk. In short, the ramp to profitability is recent, and there is limited history to judge sustainability.

• Industry & Market Risks: SSC operates in the Canadian cannabis market, which remains highly competitive and oversupplied. Pricing pressure is a constant threat – even premium concentrate markets could see margin erosion if new entrants flood the space. Regulatory changes, slow retail expansion, or shifts in consumer taste (e.g. away from concentrates) could hurt demand. As a small-cap stock, liquidity is low and share price can be volatile, amplifying any negative developments. Investors should also note that cannabis is a federally regulated industry; compliance costs and regulatory risks (licensing, quality recalls, etc.) are non-trivial for SSC.

Charts/Infographics

Stock Performance vs. Index: Simply Solventless’s share price has vastly outperformed the TSX Venture Index over the past year. The chart below (rebased to 100 in Apr 2024) shows HASH rocketing higher while the broader micro-cap index stayed flat. This reflects SSC’s strong news flow and fundamentals amid a generally lackluster venture market. In 2024, SSC’s stock price appreciated +420% vs. roughly flat performance for the TSXV index. However, the stock is volatile – after peaking in Jan 2025, it pulled back ~20%, reminding investors that small-cap cannabis equities can swing sharply on sentiment. Overall, SSC has been a clear outlier in its sector, driven by its exceptional growth narrative.

Revenue Growth Trajectory: SSC’s quarterly revenue growth has been nothing short of stellar. The bar chart above illustrates the step-change increases in sales each quarter of 2024 and into 2025. Notably, revenue leapt from $4.0M in Q2 2024 to $7.2M in Q3 2024, then to $11.8M in Q4 2024​. This growth is a combination of organic expansion (new product launches, increased distribution) and inorganic addition of acquired revenue streams. By Q4 2024, SSC was already operating at a ~$47M annualized gross revenue run-rate​. The $12.5M Q1 2025E bar (striped) shows management’s guided revenue, which if achieved would annualize to ~$50M – continuing the growth trend. This trajectory highlights SSC’s momentum; few micro-caps show this kind of sequential growth, but investors will watch if SSC can maintain the pace post-merger integration.

Valuation vs. Peers: Despite SSC’s rapid growth, its valuation metrics are in line with or cheaper than peers. The chart above compares Enterprise Value/EBITDA multiples for SSC and two small-cap Canadian cannabis peers. SSC (green bar) is shown on a forward basis (~6× EV/EBITDA using guidance), whereas Decibel Cannabis (DB, blue) and Cannara Biotech (LOVE, red) trade around 11–12× on trailing EBITDA. This suggests SSC is reasonably valued relative to peers, especially considering it’s now profitable (Decibel, for example, has thin profitability and trades around 0.4× sales but ~12× EBITDA​). If SSC delivers ~$12M+ EBITDA in the coming year, a multiple re-rating is possible. Investors should note, however, that cannabis peers often trade at low valuations due to sector-wide risk aversion – SSC’s multiple could remain depressed until it establishes a longer track record of earnings.

Star Rating (1–5)

⭐⭐⭐⭐☆ – 4/5 Stars. Simply Solventless earns a high score for long-term investors seeking growth. The company has a clear path to scale and profitability, a differentiated niche (solventless products), and savvy management executing a consolidation strategy. Its recent results inspire confidence, and insiders are meaningfully invested. We deduct one star mainly for execution and industry risks – SSC is still a young player in a turbulent sector. Overall, confidence is high that SSC can continue to grow shareholder value, but prudent investors will monitor how well it integrates acquisitions and navigates cannabis market headwinds.

TL;DR Summary

Simply Solventless (HASH) – A fast-rising cannabis extracts company that’s growing like a weed (literally): now a top-2 concentrates producer in Canada, profitable, and trading at an attractive valuation for those bullish on its high-terpene game plan.

📌 Further Reading:

• Stratcann – Simply Solventless provides Q1 2025 guidance (Apr 1, 2025): Indepth news on SSC’s record revenue projections and earnings outlook​.

• StockAnalysis – Simply Solventless Company Profile & Financials: Key facts, description, and financial statistics for HASH​.

• Newsfile – SSC Ranks 14th on 2025 TSX Venture 50™ (Feb 19, 2025): Official press release on SSC’s top-50 ranking and business update​.

⚠️ Disclaimer: This report is for informational purposes only and not investment advice. Do your own due diligence and consider your risk tolerance before making any investment decisions.