One of the most exciting early stage public companies in Canadian cannabis is making a new acquisition. But, why?

‍What’s happening:‍

• Simply Solventless (TSXV: HASH) has announced they will acquire Delta 9 Bio-Tech
  

By the numbers:‍

• Simply Solventless is acquiring Delta 9 Bio-Tech out of bankruptcy for $3M CAD in working capital
  
• Delta 9 Bio-Tech was producing 9,000 kilograms of high quality cannabis annually prior to going into bankruptcy protection
  

Why it matters:‍

• Simply Solventless has very quickly become one of the fastest growing cannabis brands in Canada focused on extracts and vaping, which has been fuelled by rapid revenue growth
  

Going deeper:‍

• The acquisition of Delta 9 Bio-Tech is aiming to significantly streamline Simple Solventless’s vertical integration and production capacity, which they have publicly stated will meaningfully reduce various costs around facility operations and manufacturing
  

The intrigue:‍

• This is not the first time that Simple Solventless has acquired an asset from a distressed cannabis company, previously purchasing online marketplace CannMart from Namaste Technologies after they experienced a dramatic collapse in their share price and wound down the vast majority of their operations

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