Vancouver, British Columbia --News Direct-- Hill Incorporated
DehydraTECH Licensing Revenues increases 5x vs. Year Ago and Hits Another Quarterly Record as New Licensees and New Launches Continue to Hit the Market
Year-to-Date Consolidated Gross Profit Continues to Show Strong Growth at +44% vs. Year Ago, Building on the +37% Gross Profit Growth for Full-Year FY 2022
Balance Sheet Transformation is Now Complete
Toronto, ON - TheNewswire - May 31, 2023 - Hill Incorporated, formerly Hill Street Beverage Company Inc. (TSXV:HILL) (OTC:HSEEF) ("Hill” or the "Company"), a progressive bioscience implementation company that is dedicated to building pathways to better and healthier living by leveraging our deep CPG expertise to commercialize leading-edge technologies to craft superior cannabis solutions and non-alcoholic beverage products globally, is pleased to announce that today it has released its financial results for the three-month and nine-month periods ended March 31, 2023 (“Q3 FY 2023”). The financial information reported in this press release is based on unaudited, management-prepared financial statements for Q3 FY 2023.
DehydraTECH Licensing Revenues Increases 5x vs. Year Ago and Hits Another Quarterly Record as New Licensees and New Launches Continue to Hit the Market
The Company continued to add states to its geographic footprint for DehydraTECH licensing as well as introducing new form factors to its portfolio of DehydraTECH-powered consumer products during the three-month period ended March 31, 2023. The Company has now expanded its licensing to an operating footprint in the U.S. that covers thirteen states with a total population of 150MM1 and an addressable market of approximately $25.6B2 USD in estimated 2023 cannabis sales. That footprint covers states generating over two-thirds of the addressable market of $31.8B USD in projected total U.S. cannabis sales for 20233.
As a result, the Company is pleased to announce that it grew DehydraTECH licensing revenues by 442% in Q3 FY 2023 when compared to the same period last year and 28% versus the prior quarter.
The following chart shows the growth in DehydraTECH licensing revenues over the past 6 quarters:
Click Image To View Full Size
Year-to-Date Consolidated Gross Profit Continues to Show Strong Growth at +44% vs. Year Ago
While the results of the individual business units should be considered separately on a quarterly basis and over time, consolidated gross profit has increased +44% year to date vs. year ago, building on the full year FY 2022 growth of +37% compared to the prior period.
Balance Sheet Clean-Up is Complete
Significant advances have been made to improve the overall financial operating health of the Company. Hill is pleased to provide a snapshot of its simplified balance sheet below, with corresponding notes. For the Company’s full financial statements and a comprehensive Company update by way of its Management Discussion and Analysis, please visit the Company’s profile at www.sedar.com.
Click Image To View Full Size
Note 1: Between December 1, 2022 and March 31, 2023, the Company has:
a) collected on all of its significant aged receivables;
b) completed an insider-supported private placement at $3.00 per unit ($0.04 adjusted for the 75:1 common share consolidation that occurred on May 30, 2023);
c) settled all of the Company’s significant aged payables; and
d) completed the sale of assets held 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 were outstanding as at March 31, 2023.
Note 3: As part of the Company’s focused efforts on DehydraTECH expansion in the United States, Hill exited its lease of the Canadian Lucknow cannabis R&D facility in February 2023. This allowed the Company to eliminate certain overhead expenses while allocating additional resources to drive additional growth in the US.
As a result of these efforts, management expects that the Company currently has sufficient cash on hand to fund current operations for at least the next twelve months.
Matthew Jewell, CFO comments: “All of the successes discussed above are the direct result of the Hill executive team ensuring the Company is laser focused with clear objectives. We are well capitalized and in a strong position to work towards achieving our growth potential. I look forward to seeing where we can take it from here now that legacy items have been resolved and the team is fully onboarded and well positioned for continued success.”
The Company also confirms that effective May 30, 2023, its name change to Hill Incorporated and the consolidation of the Company’s shares on a 75-to-1 basis have been completed.
About Hill Incorporated (TSXV: HILL) / (OTCQB: HSEEF)
Hill Incorporated is a progressive bioscience implementation company that is dedicated to building pathways to better and healthier living by leveraging our deep CPG expertise to commercialize leading-edge technologies to craft superior cannabis solutions and non-alcoholic beverage products globally. Our Hill Avenue Cannabis business unit is pioneering the space where craft consumer products meet bioscience by combining our deep CPG commercialization expertise with our rights to use Lexaria Bioscience Corp’s ground-breaking DehydraTECH patent portfolio for product development, licensing and B2B and B2C sales of cannabis ingredients or products on a global scale. Our Hill Street Beverage business unit represents the Company’s legacy alcohol-free consumer beverage marketing and distribution business.
For more information on our business activities visit www.hillincorporated.com, to learn more about our DehydraTECH cannabis biodelivery technology, go to www.dehydratech-thc.com, or to check out Hill Street Beverage’s award-winning alcohol-free wine line-up and order product to be delivered straight to your home, go to www.hillstreetbeverages.com.
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For more information:
Matthew Jewell, Chief Financial Officer firstname.lastname@example.org
Statements in this press release may contain forward-looking information. Any statements 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”, “would”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, 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 the Company. The reader is cautioned not to place undue reliance on any forward-looking information. 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. The Company 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 required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1 US Census Bureau, https://www.census.gov/quickfacts/fact/table/US/PST045221
2 MJBiz Factbook 2023
3 MJBiz Factbook 2023
View source version on newsdirect.com: https://newsdirect.com/news/hill-incorporated-releases-fy2023-q3-financial-results-673228710