(TheNewswire)
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Recently Added DehydraTECH Licensee, Multi-State Operator MariMedInc., Continued to Roll Out DehydraTECH-Powered Product Initiatives inQ3
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Subsequent to theQuarter, an Exciting New DehydraTECH Licensee, SweetBuzz By Drecisco, Is Launching New DehydraTECH-PoweredProducts in Illinois, the Result of Significant Business Developmentand RD Efforts by Hill Commercialization Partner Dehydr8 During TheQuarter
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Licensee 1906 Saw Strong SalesResults from Their Direct-To-Consumer “Drops” Product Line,Produced Using DehydraTECH And Sold Across A Majority of US States
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We Continued toDrive Marketplace Growth on Vin(Zero) Alcohol-Free Wine, IncreasingShipments to Retailers by 12% in Q3 vs Year Ago
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We Narrowed theNet Loss for the Nine-Month Period by 12% vs. Same Period YearAgo
Toronto, ON. — May 30, 2024 — TheNewswire – Hill Incorporated, formerly Hill StreetBeverage Company Inc. ( TSXV: HILL )(" Hill ” or the " Company "), is pleased to announce that ithas released its financial results for the three-and nine-monthperiods ended March 31, 2024 (“ Q3 FY 2024 ”), which can be found at www.sedarplus.com . The progressive bioscience implementation company isdedicated to building pathways to better and healthier living byleveraging deep CPG expertise to commercialize leading-edgetechnologies, crafting superior cannabis solutions and non-alcoholicbeverage products globally. The financial information summarized inthis press release is based on data from Q3 FY2024.
Recently Added DehydraTECH Licensee,Multi-State Operator MariMed Inc., Continued to Roll OutDehydraTECH-Powered Product Initiatives in Q3
As we announced on November 16,2023, leading multi-state operator MariMed is now using the patentedDehydraTECH biodelivery technology to power its next generation ofcannabis edibles sold under several of its award-winning brands.
In Q2 FY2024, MariMed rolled out improvedDehydraTECH-powered products in Massachusetts,Maryland, and Delaware. This quarter, following the commencement ofoperations in their Mt. Vernon, Illinois processing facility, MariMedbegan launch development activities for DehydraTECH-powered edibles inIllinois.
Today, the MariMed brands being powered by DehydraTECHinclude ‘ Vibations™ ‘ all-natural, full-spectrum cannabis drink mix, which recently wonfirst place in the beverages category of the High Times CannabisCup in Massachusetts, ‘ K Fusion™ ‘ chewable tablets, and ‘InHouse TM ‘ gummies. More information on MariMed’s brands can befound at MariMedBrands .
We anticipate that this major multi-state, multi-brandlicensee will deliver strong incremental licensing revenues in 2024 astheir launches reach full scale and expand across their statefootprint.
Subsequent to the Quarter, an Exciting New DehydraTECH Licensee,Sweet Buzz By Drecisco, Is Launching New DehydraTECH-Powered Productsin Illinois, the Result of Significant Business Development andR&D Efforts by Hill Commercialization Partner Dehydr8 During TheQuarter
As mentioned in prior communications, the businessdevelopment and launch preparation process for new licensees todevelop new or reformulate existing products with DehydraTECH requiressignificant R&D work, often with new form factor productdevelopment, as well as operations planning for state-by-statemanufacturing and launches. Major ongoing developmental effortsreached the launch stage in Q3, with an exciting new licensee and itsnew edibles products being launched in-market after Q3 end. Weexpect to be able to announce other important launches by newDehydraTECH licensees very soon.
SweetBuzz byDrecisco Farms
In Illinois in April, new DehydraTECH licensee Drecisco Farms has launched their new ‘” SweetBuzz ”DehydraTECH-powered cannabis edibles products including:
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“Sweet Somethings” candy cups
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“Sweet Sparks” chocolatey candies, and
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“Sweet Empowder” dissolvable powder
Drecisco Farms is a social equity craft grow inIllinois, driven by the belief that delicious taste and a qualitycannabis experience should be one and the same. Bringing theirexperience managing and leading a mainstream confectionary company,they are proud to bring their generational confectionary knowledgecrafting the candies that consumers have known and loved to acraveable cannabis experience with their brand SweetBuzz.
Licensee 1906 Saw Strong Sales Results from TheirDirect-To-Consumer “Drops” Product Line, Produced UsingDehydraTECH And Sold Across A Majority of US States
1906 continued to see strong sales from their newdirect-to-consumer (DTC) product line across a majority of US states,which offers hemp-derived Delta-9 THC micro-dose versions of theirpopular ‘Drops’ products, which are also produced usingDehydraTECH. This DTC launch at the end of 2023 expanded access of1906 Drops varieties to a much broader footprint of consumers, addingDTC distribution across approximately 40 states. This initiativeadds to the dispensary availability in several legal adult-use statesof the higher dose, marijuana-derived delta-9 THC 1906 Drops. 1906has announced that they are streamlining the dispensary availabilityof the higher dose, marijuana-derived delta-9 THC 1906 Drops toIllinois, Massachusetts, Missouri, New Jersey, New York andPennsylvania, exiting those products from the Michigan and Coloradomarkets. More information on 1906’s products can be found at https://1906.shop/.
The addition of MariMed, and Sweet Buzz By DreciscoFarms to our DehydraTECH licensee ecosystem represents continuedexpansion by Hill on the key factors driving the growth agenda of ourDehydraTECH licensing business:
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1) newlicensees – increasing our base of activelicensees and brands;
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2) newstates – new state launches expanding thegeographic coverage for active licensees or brands;
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3) new productform factors – innovation to expand the numberof DehydraTECH-powered consumer product forms and types inmarket to fill consumer needs and occasions; and
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4) deeperpenetration of products across operations –driving deeper penetration of the breadth of product forms and brandsacross current and new states.
The following chart shows the significant advances wehave made in the DehydraTECH licensing business, beginning from theDecember 2020 rights acquisition through the close of Q3 on March 31,2024. These figures include a reduction in states of 1906 Drops inthe dispensary (not DTC) channel but do not add the 40-state footprintof the direct-to-consumer business of 1906 Drops.
We Continued to Drive MarketplaceGrowth on Vin(Zero) Alcohol-Free Wine, Increasing Shipments toRetailers by 12% in Q3 vs Year Ago
As communicated, the new streamlined commercial modelon our alcohol-free business creates a new and different cadence tothe business, where dramatic quarter-to-quarter swings on therecognized revenues are planned based on inventory efficiencies andthe timing of inventory arrivals. Therefore, the business must belooked at across longer time frames and through different operationallenses. As we adapt to the new cadence of supply shipments andrecognized revenues, a key measure of the underlying business in thisnew model is our case depletions, which represents the shipmentfigures from our distributor to retailers. Our shipments fromwarehouses to retail customers increased by a strong 12% during thequarter over same quarter prior year, following 11% growth in Q2. Every month this quarter showed double-digit growth vs. year ago,indicating a strong baseline of growth from our merchandising programsand the new customer base we secured with Save-On-Foods.
About Hill Incorporated (TSXV:HILL)
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 StreetBeverages 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, contact:
Craig Binkley, Chief Executive Officer
Email: craig@hillincorporated.com
Phone: 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.
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