(TheNewswire)
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DehydraTECH Licensing Revenues increases 5x vs. YearAgo and Hits Another Quarterly Record as New Licensees and NewLaunches Continue to Hit the Market
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Year-to-Date Consolidated Gross Profit Continues toShow Strong Growth at +44% vs. Year Ago, Building on the +37% GrossProfit Growth for Full-Year FY 2022
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Balance Sheet Transformation is Now Complete
Toronto, ON - TheNewswire - May 31,2023 - Hill Incorporated, formerly Hill Street Beverage CompanyInc. (TSXV:HILL) (OTC:HSEEF) (" Hill ” or the" Company "), aprogressive bioscience implementation company that is dedicated tobuilding pathways to better and healthier living by leveraging ourdeep CPG expertise to commercialize leading-edge technologies to craftsuperior cannabis solutions and non-alcoholic beverage productsglobally, is pleased to announce that today it has released itsfinancial results for the three-month and nine-month periods endedMarch 31, 2023 (“Q3 FY 2023”). The financial informationreported in this press release is based on unaudited,management-prepared financial statements for Q3 FY 2023.
DehydraTECH Licensing RevenuesIncreases 5x vs. Year Ago and Hits Another Quarterly Record as NewLicensees and New Launches Continue to Hit the Market
The Company continued to add states to its geographicfootprint for DehydraTECH licensing as well as introducing new formfactors to its portfolio of DehydraTECH-powered consumer productsduring the three-month period ended March 31, 2023. The Company hasnow expanded its licensing to an operating footprint in the U.S. thatcovers thirteen states with a total population of 150MM 1 and an addressablemarket of approximately $25.6B 2 USD inestimated 2023 cannabis sales. That footprint covers statesgenerating over two-thirds of the addressable market of $31.8B USD inprojected total U.S. cannabis sales for 2023 3 .
As a result, the Company is pleased to announce that itgrew DehydraTECH licensing revenues by 442% in Q3 FY 2023 whencompared to the same period last year and 28% versus the priorquarter.
The following chart shows the growth in DehydraTECHlicensing revenues over the past 6 quarters:
Year-to-Date Consolidated GrossProfit Continues to Show Strong Growth at +44% vs. Year Ago
While the results of the individual business unitsshould be considered separately on a quarterly basis and over time,consolidated gross profit has increased +44% year to date vs. yearago, building on the full year FY 2022 growth of +37% compared to theprior period.
Balance Sheet Clean-Up isComplete
Significant advances have been made to improve theoverall financial operating health of the Company. Hill is pleased toprovide a snapshot of its simplified balance sheet below, withcorresponding notes. For the Company’s full financial statementsand a comprehensive Company update by way of its Management Discussionand Analysis, please visit the Company’s profile at www.sedar.com .
Note 1 : Between December1, 2022 and March 31, 2023, the Company has:
a) collected on all of itssignificant aged receivables;
b) completed an insider-supported privateplacement at $3.00 per unit ($0.04 adjusted for the 75:1 common share consolidationthat occurred on May 30, 2023) ;
c) settled all of the Company’ssignificant aged payables; and
d) completed the sale of assetsheld for sale following the strategic pivot in 2022 to discontinue its(V)ia Regal line of cannabis-infused beverage, for net proceeds of$143,601 and a gain on the sale of $40,512.
Note 2 : As of May 31,2023, the Company has collected over 95% of its receivables that wereoutstanding as at March 31, 2023.
Note 3 : As part of theCompany’s focused efforts on DehydraTECH expansion in the UnitedStates, Hill exited its lease of the Canadian Lucknow cannabis R&Dfacility in February 2023. This allowed the Company to eliminatecertain overhead expenses while allocating additional resources todrive additional growth in the US.
As a result of these efforts, management expects thatthe Company currently has sufficient cash on hand to fund currentoperations for at least the next twelve months.
Matthew Jewell, CFO comments: “Allof the successes discussed above are the direct result of the Hillexecutive team ensuring the Company is laser focused with clearobjectives. We are well capitalized and in a strong position to worktowards achieving our growth potential. I look forward to seeingwhere we can take it from here now that legacy items have beenresolved and the team is fully onboarded and well positioned forcontinued success.”
The Company also confirms that effective May 30, 2023,its name change to Hill Incorporated and the consolidation of theCompany’s shares on a 75-to-1 basis have been completed.
About Hill Incorporated (TSXV: HILL)/ (OTCQB: HSEEF)
Hill Incorporated is a progressive bioscienceimplementation company that is dedicated to building pathways tobetter and healthier living by leveraging our deep CPG expertise tocommercialize leading-edge technologies to craft superior cannabissolutions and non-alcoholic beverage products globally. Our HillAvenue Cannabis business unit is pioneering the space where craftconsumer products meet bioscience by combining our deep CPGcommercialization expertise with our rights to use LexariaBioscience Corp’s ground-breaking DehydraTECH patentportfolio for product development, licensing and B2B and B2C salesof cannabis ingredients or products on a global scale. Our Hill StreetBeverage business unit represents the Company’s legacy alcohol-freeconsumer beverage marketing and distribution business.
For more information on our business activities visit www.hillincorporated.com , tolearn more about our DehydraTECH cannabis biodelivery technology, goto www.dehydratech-thc.com , orto check out Hill Street Beverage’s award-winning alcohol-free wineline-up and order product to be delivered straight to your home, go to www.hillstreetbeverages.com .
If you wish to sign up for the Hill Incorporatedmailing list, click HERE .
For more information:
Matthew Jewell, Chief Financial Officer
matthew@hillstreetbevco.com
604-609-6154
FORWARD-LOOKING STATEMENTS
Statements in this press release may containforward-looking information. Any statements in this press release thatare not statements of historical fact may be deemed to beforward-looking statements. Forward-looking statements are oftenidentified by terms such as “may”, “should”, “would”,“anticipate”, “expects”, and similar expressions. The readeris cautioned that assumptions used in the preparation of anyforward-looking information may prove to be incorrect. Events orcircumstances, such as future availability of capital on favourableterms, may cause actual results to differ materially from thosepredicted, as a result of numerous known and unknown risks,uncertainties, and other factors, many of which are beyond the controlof the Company. The reader is cautioned not to place undue reliance onany forward-looking information. Such information, although consideredreasonable by management at the time of preparation, may prove to beincorrect and actual results may differ materially from thoseanticipated. Forward-looking statements contained in this pressrelease are expressly qualified by this cautionary statement. Theforward-looking statements contained in this press release are made asof the date of this press release. The Company does not undertake anyobligation to update publicly or to revise any of the includedforward-looking statements, whether as a result of new information,future events or otherwise, except as required by securitieslaw.
Neither TSXVenture Exchange nor its Regulation Services Provider (as that term isdefined in policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
1 US Census Bureau, https://www.census.gov/quickfacts/fact/table/US/PST045221
2 MJBiz Factbook2023
3 MJBiz Factbook 2023
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