Simply Solventless Concentrates (SSC), the company behind the Frootyhooty and Astro Labs cannabis brands, announced today that it has acquired the Lamplighter recreational cannabis brand for $600,000.
SSC provides an array of cannabis concentrate products like vape pens, hash, and infused pre-rolls. Lamplighter has similar products in markets across Canada, including Ontario, Alberta, and British Columbia, expanding SSC’s portfolio.
The deal adds up to 21 additional product listings from SSC in large product categories in Ontario, Alberta, and British Columbia.
The purchase price will be paid from future Lamplighter cash flow, equal to the net book value of the tangible assets acquired.
Jeff Swainson, President and CEO of Simply Solventless Concentrates, said in a press release that the acquisition will help the brand house expand further into the Canadian market.
“With Canadian LPs exiting the business-to-consumer market in Canada to focus on international sales, SSC has the opportunity to complement our strong organic revenue growth with acquisitions of quality assets that are accretive to revenue and profitability.”
“With projected 2023 Lamplighter gross revenue of $6.8 million, and similar revenue projected for 2024, we believe the acquisition will contribute value to our shareholders.”
SSC’s brand, Frootyhooty, launched nine initial SKUs in Alberta in December 2023. SSC plans to launch thirteen additional Frootyhooty SKUs in Alberta and Ontario during February 2024, with launches in other provinces to follow.
SSC expects the first Lamplighter sales in February 2024 and for the integration of the Lamplighter brand to be completed by May 2024.
At the end of 2023, SSC, which trades on the TSXV as HASH, completed a previously announced qualifying transaction by way of a reverse takeover (RTO).
In accordance with that RTO, SSC implemented a consolidation of its then-issued and outstanding 11,000,000 common shares on the basis of one new common share for every two existing common shares. It also joined with its wholly-owned subsidiary, 2366191 Alberta Ltd. (Subco), to form Massive Hash Factory Ltd., a new wholly-owned subsidiary of SSC.
SSC also announced this week the appointment of Randeep Gill to the position of Vice President, Commercial. Gill holds a Bachelor of Science degree in Pharmacy, a Pharmaceutical QA/QC post-graduate diploma, and a Plant Production and Facility Management diploma.