/NOT FOR DISTRIBUTION TO
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Lamplighter provides premium, ready to consume ("RTC") cannabis products to markets across
Mr.
Acquisition Consideration, 2023 Gross Revenue, and SSC Valuation (1)
Lamplighter | Acquisition Revenue Multiple (Net of Tangible Assets Acquired)(1) | 2023 | 2023 | 2023 | Current SSC | Gross Revenue |
0.0x | 0.14x |
(1) | Unaudited. Projections. Please conduct your own due diligence. |
(2) | Enterprise Value calculated as |
(3) | Gross Revenue Multiple calculated by dividing the Enterprise Value by the Combined Gross Revenue. |
SSC expects first Lamplighter sales in February, 2024, and for the integration of the Lamplighter brand to be completed by May, 2024.
Lamplighter Acquisition Benefits
The anticipated benefits of this acquisition for SSC are as follows:
- Adds up to 21 additional product listings in
Ontario ,Alberta , and BC in large product categories. - Provides sales access to BC, a province that SSC does not currently participate in.
- Adds projected gross revenue of
$6.8 million per year (2023 projected Lamplighter run rate). - Adds material projected gross margin with minimal incremental fixed operating costs.
- The
$0.6 million consideration will be paid to the Vendor when the Lamplighter products are sold to the provinces. This limits SSC's risk on the acquisition. - Leverages unutilized facility capacity.
- Reduces sales, general & administration costs as a percentage of revenue.
- Diversifies product portfolio into high potency distillate vapes and prerolls.
- Complements SSC's popular Frootyhooty (live rosin amplified) and Astrolab (solventless) brands.
See below for a link to the Lamplighter website:
https://lamplightercanna.ca/
Appointment of Vice President, Commercial
SSC is pleased to announce that
Corporate Presentation Posted to Website
SSC has posted a new corporate presentation to its website at www.simplysolventless.ca.
SSC is a public company incorporated under the Business Corporations Act (
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" and similar expressions which are intended to identify forward-looking statements. More particularly and without limitation, this press release contains forward looking statements concerning market capitalizations, enterprise values, gross revenue multiples, upside for SSC shareholders, anticipated benefits to SSC of the Lamplighter acquisition, SSC capitalizing on opportunities for organic and inorganic growth in the cannabis industry, future gross revenues, future combined revenues, sales access to BC and other jurisdictions and listings, additional gross margin, the sale of Lamplighter products, future growth, the opinions or beliefs of management, utilizing unutilized facility capacity, the diversification of SSC's product portfolio, the timing for initial sale and final integration of the Lamplighter brand, and the launching of additional Frootyhooty products. 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, 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 and 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.
Pro Forma Presentation.
The pro forma financial information referred to in this press release, being combined gross revenue and gross revenue multiple ("Pro Forma Information"), which gives effect to the Lamplighter acquisition as if it had closed on
The Pro Forma Information has been derived from, and should be read in conjunction with: (i) the audited consolidated financial statements of the Company for the year ended
The Pro Forma Information presented herein is not necessarily indicative of the operating results or financial condition that would have been achieved if the acquisition to which the Pro Forma Information relates had been completed on the dates or for the periods presented, nor do they purport to project the results of operations or financial position of the combined entities for any future period or as of any future date. Actual amounts recorded from consummation of the acquisition to which the Pro Forma Information relates would likely differ from those recorded in the Pro Forma Information. The Pro Forma Information does not reflect any special items such as integration costs or operating synergies that may be realized as a result of the acquisition to which the Pro Forma Information relates.
Certain adjustments and assumptions were made when preparing the Pro Forma Presentation to give effect to the Lamplighter acquisition. The information upon which such adjustments and assumptions were made was preliminary and adjustments and assumptions of this nature are difficult to make with complete accuracy. The Company has not independently verified the financial statements of Lamplighter that were used to prepare certain of the Pro Forma Information included in this press release and as such the Pro Forma Information is not intended to be indicative of the financial condition, results of operations or cash flows that would actually have occurred, or which are expected in future periods, had the acquisition occurred on the dates indicated. The Pro Forma Information contained in this [press release/Presentation is included for informational purposes only, as of their respective dates, and undue reliance should not be placed on such Pro Forma Information
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Neither
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