Calgary, Alberta — January 19, 2026 — Leads & Copy — Simply Solventless Concentrates Ltd. (TSXV: HASH) (SSC) is providing updates on its cultivation facility retrofit by its subsidiary, Humble Grow Co. (Humble), and the integration of past acquisitions, which is anticipated to create cost savings.
SSC’s President & CEO Jeff Swainson said all Humble retrofit LED lights have been ordered from existing working capital sources, and installation timelines will be provided as progress is made. Preliminary schedules suggest 100% retrofit production by early Q3 2026. Once this run-rate is achieved, SSC’s annual gross revenue is expected to increase by $17.5-$29.5 million to $53.5-$65.5 million. With Humble fixed costs remaining consistent with pre-retrofit levels, most incremental gross margin is expected to flow to the EBITDA line, increasing SSC’s annual adjusted EBITDA by $6.5-$14.5 million to $10.7-$18.7 million.
Swainson said the $1.5 million net capital investment is expected to provide increases to revenue, adjusted EBITDA, and cash flow, and with a payback period of less than one year, the company expects to capture a return on investment for shareholders. Post-retrofit, Humble is expected to be one of the only large scale, high-quality indoor cultivation assets capable of underpinning a leading position in Canadian cannabis, and with almost all such assets currently owned by the major Canadian licenced producers, SSC will be uniquely positioned among junior Canadian licenced producers.
Humble has gathered two years of data regarding the efficacy of a retrofit at its 98,000 square foot facility located in Winnipeg, Manitoba. The retrofit uses the existing floor plan and is comprised of a lighting change to LED, table placement changes, additional irrigation, installation of dehumidifiers, and alterations to air circulation. These changes triple light intensity, and provide more consistent lighting, better nutrient uptake, and superior humidity and air circulation. The capital cost for the retrofit is approximately $2.5 million ($1.5 million net of expected government rebates).
All of Humble’s flower is currently sold every month on a B2B basis to other licensed producers (LPs). This flower services the international and domestic recreational cannabis markets (CPG).
SSC has taken steps to expand its markets in anticipation of incremental retrofit production. Post retrofit, SSC will continue to service the B2B market domestically and internationally, and it expects to also participate in the recreational cannabis market on a CPG basis with its own brands. Assuming a sales mix of 50% B2B and 50% CPG, annualized financial projections by case are below:
SSC is expected to enter into the dry flower category in the Canadian CPG market, and is expected to allocate approximately 50% of annual saleable flower under each of the Low Case, Base Case and High Case scenarios to the CPG market, 25% of saleable flower to the Canadian B2B market, and 25% of saleable flower to the international B2B market; subject to market conditions.
SSC has assumed the following per gram pricing for saleable cannabis flower: CPG saleable flower $3.00/gram; Canadian B2B saleable flower $1.60/gram; international B2B saleable flower $1.90/gram.
Management expects excise taxes to apply only to revenue associated with CPG saleable flower at an estimated rate of approximately 21% of Annualized Gross Revenue of the Humble increase.
Management expects current Humble operating costs to be maintained given the retrofit is not increasing the footprint of the Humble facility. Incremental packaging and variable costs are expected to be incurred commensurate with the increased saleable flower production, estimated to be $0.35/g for CPG saleable flower and $0.05/g for all B2B saleable flower.
Management does not expect material increase in overhead costs or salaries post-retrofit. However, increased sales and marketing costs are expected to be incurred with the launch and continued marketing of dry flower brands and products. This is expected to impact only sales in the CPG channel and is incorporated as a reduction to the per gram price received for sales in this channel.
Over the past 18 months, SSC completed four acquisitions. As of December 2025, the integration of these acquisitions is substantially complete.
Mr. Swainson said that SSC has achieved an estimated $7.8 million in annual payroll cost savings (44%) when comparing pre and post acquisition levels and that SSC’s thesis was that consolidation would result in significant synergies and cost savings, and this has now been proven. He said that they are encouraged by the impact that these cost savings will have on future operations with baseline revenue levels now achieved.
SSC’s mission is to provide pure, potent, terpene-rich ready to consume cannabis products to discerning cannabis consumers.
Jeff Swainson, President and CEO
Phone: 403-796-3640
Email: jeff@simplysolventless.ca
Source: Simply Solventless Concentrates Ltd.
