Simply Solventless Concentrates Ltd. (SSC) has entered into a deal to acquire Stigma Grow.
Under the agreement, dated March 11, 2025, SSC will acquire all of the issued and outstanding common shares of CanadaBis (Stigma) by way of a court approved plan of arrangement under the Business Corporations Act (Alberta).
CanadaBis is the parent company of cannabis brands like Stigma Grow and Dab Bods and companies like Stigma Roots, Goldstream Cannabis, and the INDICAtive Collection.
Simply Solventless says it estimates that the deal will make the company rank second and fifth in the Canadian concentrates and pre-roll categories, respectively, excluding Quebec.
“Through years of combined experience, both SSC and CanadaBis have developed competitive advantages in commercialization, market penetration, lean operations, accretive acquisitions, and acquisition integration, and as we move forward together, we will have the strength of team, critical mass, profitability, and strategic positioning to drive continued and sustainable positive results in a capital starved industry ripe with impactful opportunities,” said Jeff Swainson, President & CEO of SSC.
CanadaBis also announced that it launched a brokered private placement financing of up to 2,500 unsecured convertible debentures at a price of $1,000 per Debenture, for gross proceeds of up to $2.5 million, led by Research Capital as the sole agent and sole book-runner.
“CanadaBis has achieved positive adjusted EBITDA in thirteen straight quarters and net income profitability in eleven of the past twelve quarters,” said Travis McIntyre, President & CEO of CanadaBis. “Despite our profitable operations, it has become clear to our board that industry consolidation and critical mass is required to drive sustainable competitive advantage.”
“After a thorough evaluation of potential acquisition targets and suitors, SSC stood out to our board as a premier licensed producer with a bright future, and ultimately, as the ideal partner to achieve these goals,” added McIntyre. “It is our strong belief that CanadaBis and SSC together will be a formidable company capable of positively disrupting the cannabis industry in Canada and internationally, and most importantly, that this combination will drive significant value creation for our shareholders both now and into the future.”
In its most recent quarterly report, CanadaBis Capital Inc. reported gross revenue of $9.6 million and net revenue of $5 million for the three months ended October 31, 2024 (Q1 2025), with net income of $321,569.
In addition to the company’s sale of cannabis concentrates and extracts, flower, and pre-rolls, CanadaBis provides third-party and white-label processing contracts, including product development R&D.
CanadaBis Capital also recently completed a successful shipment of its cannabis products to Portugal, which includes a selection of cannabis products from Stigma Grow.
The company operates a 66,000-square-foot facility, of which approximately 44,000 square feet of the building has been developed and equipped for the capacity to grow 225 kg of cannabis per year. The majority of its footprint is equipped and being used for the production of cannabis products such as extracts and infused pre-rolls.
The Alberta-based company also stated in the most recent quarterly report (page 3) from 2024 that it was in the process of shipping its first international products to the European market.
In June 2024, Simply Solventless Concentrates Ltd, which sells cannabis brands like Astrolab, Frootyhooty, Roilty, and Zest, also entered into a services agreement and share purchase agreement with CannMart Inc., a cannabis company located in Etobicoke, Ontario, for $2.5 million. SCC also recently acquired Lamplighter in January 2024.
In September 2024, Simply Solventless Concentrates Ltd. entered into an agreement to buy cannabis producer ANC Inc. for $10 million in cash and shares. SSC also recently closed on a deal to acquire all the outstanding shares of Delta 9 Bio-Tech Inc. from Delta 9 Cannabis Inc., which it has renamed Humble Grow.
In a press release at the time, SSC, which does not produce flower itself, said that the acquisition of Delta 9 will help the company continue to make inroads in the dried flower market following its recent acquisition of pre-roll manufacturer ANC Inc. for $10 million. SSC expects that the all-in cash cost to cultivate cannabis through Delta 9 will be approximately $0.60-$0.70 per gram, among the lowest for indoor cannabis in Canada.
Simply Solventless Concentrates Ltd. reported net revenue of nearly $5 million for the three months ended September 30, 2024 (Q3 2024), with gross profits of almost $2 million and $424,446 in net and comprehensive income.
Gross revenue for the Calgary-based company increased 70% from the previous quarter (Q2 2024), net revenue increased 71%, and gross margins increased 14%.
Year-over-year, net revenue increased by about 75% from $1.3 million in Q3 2023, while gross profit increased by approximately 72% from $547,009. Net income increased by about 71% from $121,216 in Q3 2023.
