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CALGARY, AB, Aug. 28, 2025 /CNW/ - Simply Solventless Concentrates Ltd. (TSXV: HASH) ("SSC") is pleased to announce its Q2 2025 financial and operating results including record quarterly gross revenue of $13.0 million, EBITDA of $4.3 million, adjusted EBITDA of $3.2 million and positive cash flow from operations of $1.0 million. The information set out in this press release should be read in conjunction with SSC's condensed interim consolidated financial statements as at and for the three and six months ended June 30, 2025 and the related management's discussion and analysis, which are available for review on SSC's SEDAR+ profile at www.sedarplus.ca.

"We delivered another strong quarter of profitable growth, driven by focused and disciplined execution across all of our business units. The SSC platform is allowing our acquired subsidiaries, including Humble, ANC, and Cannmart, to operate on an integrated and complimentary manner. We are now seeing the benefits of increased scale and critical mass beginning to take shape, resulting in record Q2 2025 gross revenue and adjusted EBITDA, and most importantly, positive cash flow from operations of $1.0 million. We have significantly improved our balance sheet in part through the ANC promissory note settlement and deferral, and we will continue to focus on driving further growth in cash generation from our assets as we launch new products, including the Sluggers brand in late Q3 2025, and as we pursue additional key markets through the remainder of 2025." said President and CEO Jeff Swainson.

Q2 2025 Highlights

 
INCOME STATEMENT FIGURES 
For the three months ended,                     June 30,  March 31,  QoQ % 
                                                 2025      2025       INCREASE 
Gross Revenue                                     $13.0M     $12.4M        5 % 
Gross Revenue/Share                               $0.118     $0.115        3 % 
Net Revenue                                       $11.0M      $9.9M       11 % 
Net Revenue/Share                                 $0.099     $0.091        9 % 
Gross Margin                                       $5.3M      $4.8M       10 % 
Gross Margin/Share                                $0.047     $0.044        7 % 
EBITDA(1)                                          $4.3M      $9.5M     (55 %) 
EBITDA/Share(2)                                   $0.039     $0.087     (55 %) 
Adjusted EBITDA(1)                                 $3.2M      $3.2M        0 % 
Adjusted EBITDA/Share(2)                          $0.029     $0.030      (3 %) 
Net Income                                         $3.4M      $8.4M     (60 %) 
Net Income/Share(2)                               $0.031     $0.078     (60 %) 
Normalized Net Income $(NNI)$(1)                     $2.0M      $1.5M       33 % 
NNI/Share(2)                                      $0.018     $0.014       29 % 
Cash from Operations Prior to Changes in 
 Working Capital                                   $2.3M      $2.0M       15 % 
Cash from (used in) Operations After Changes 
 in Working 
 Capital                                           $1.0M     -$2.8M      136 % 
Gross Margin %                                    43.0 %     48.9 %     (12 %) 
 
 
(1)  Non-IFRS financial measure. See discussion in the 
      Non-IFRS Financial Measures advisories section of 
      this press release below. 
(2)  Based on 115,502,799 common shares of SSC outstanding 
      as of June 30, 2025 and 108,627,799 common shares 
      of SSC outstanding as of March 31, 2025, as applicable. 
 
 
BALANCE SHEET FIGURES 
As at                   June 30,  December 31,  % INCREASE 
                         2025      2024 
Total Assets              $60.5M        $38.6M        57 % 
Net Assets                $31.9M        $15.5M       106 % 
Working Capital(1)        $20.3M         $1.6M     1,148 % 
Current Ratio(1)            2.62          1.08       143 % 
Inventory Turnover(1)      1.13x         0.78x        45 % 
 
 
(1)  Non-IFRS financial measure. See discussion in the 
      Non-IFRS Financial Measures advisories section of 
      this press release below. 
 

Q2 2025 Operational Highlights

   -- Humble Retrofit Commencement: The retrofit of SSC's Humble facility in 
      Winnipeg, MB is expected to increase cannabis production from 
      approximately 8,000kg per year to approximately 14,000kg per year. SSC 
      expects that harvests from the retrofit production will commence in Q1 
      2026. The retrofit is expected to cost approximately $2.5 million. 
 
   -- Status Brand Update: Launched in late 2024, SSC's Status brand, acquired 
      as part of the ANC Inc. acquisition, continues to gain traction across 
      Canada. 
 
   -- Agreement with Natura Life + Science (Sluggers Brand): Reached an 
      agreement with Natura Life + Science, a California cannabis company, to 
      launch Sluggers, the legendary northern California cannabis brand, in 
      Canada. The Sluggers brand was built by cannabis culture and community 
      leaders, and is known for premium pre-rolls, vapes and flower. With a 
      passionate fan base, Sluggers has been setting the standard in the U.S. 
      cannabis market. Sluggers has rapidly expanded across multiple states, 
      and is now leveraging SSC's leading manufacturing capability to bring 
      Sluggers' exceptional products to Canada. SSC has exclusivity on 
      distribution of the Sluggers brand in Canada. SSC will retain 75% of the 
      net income generated from the sale of the Sluggers products. SSC will 
      provide all raw materials and Natura will pay for all sales and marketing 
      activities. 
 
   -- Appointment of Ananth Krishnan as Chief Financial Officer: On July 24, 
      2025 SSC announced the appointment of Ananth Krishnan to the position of 
      Chief Financial Officer, effective August 25, 2025. Ananth brings to SSC 
      over twenty years of experience in investment banking, investment 
      management, financial planning & management, investor relations, strategy, 
      corporate development, commercial negotiations, and cannabis operations. 

About Simply Solventless Concentrates Ltd.

SSC is a public company incorporated under the Business Corporations Act (Alberta). SSC's mission is to provide pure, potent, terpene-rich ready to consume cannabis products to discerning cannabis consumers. For more information regarding SSC, please see www.simplysolventless.ca.

Notice on Forward Looking Information

This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "will", "estimates", "believes", "intends", "expects", "projected", "approximately" and similar expressions which are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements concerning the launch of new products, including the Sluggers brand, pursuing additional markets and the retrofit of SSC's Humble facility. SSC cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, assumptions and expectations, many of which are beyond the control of SSC, including expectations and assumptions concerning SSC, the timing and market acceptance of products, competition in SSC's markets, SSC's reliance on customers, fluctuations in interest rates, SSC's ability to maintain good relations with its customers, employees and other stakeholders, changes in law or regulations, SSC's ability to protect its intellectual property, as well as other risks and uncertainties, including those described in SSC's filings available on SEDAR+ at www.sedarplus.ca. The reader is cautioned that assumptions used in the preparation of any forward-looking statements may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of SSC. The reader is cautioned not to place undue reliance on any forward-looking statements. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this press release are made as of the date of this press release, and SSC does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.

Non-IFRS Financial Measures and Ratios

This press release includes references to "EBITDA", "adjusted EBITDA", "normalized net income", "working capital", "current ratio" and "inventory turnover" which are not defined under International Financial Reporting Standards (IFRS). The intent of these non-IFRS measures is to provide additional useful information to investors and analysts. These non-IFRS measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other entities. As such, these non-IFRS measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS.

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