Simply Solventless Concentrates (SCC) has shared updates on its Winnipeg cultivation facility retrofit through its wholly owned subsidiary, Humble Grow
Humble Retrofit
SSC confirmed that all LED lighting for the Humble facility has been ordered. Installation timelines are ongoing, with the company targeting full retrofit production by early Q3 2026. Once operational, SSC expects annual gross revenue from the facility to rise by $17.5 million to $29.5 million, reaching total revenue of $53.5 million to $65.5 million. Adjusted EBITDA is projected to increase by $6.5 million to $14.5 million, bringing total adjusted EBITDA to $10.7 million to $18.7 million.
The retrofit covers the facility's full 98,000 square feet and includes upgraded LED lighting, revised table layouts, additional irrigation, new dehumidifiers, and improved air circulation. SSC says these changes triple light intensity and improve nutrient uptake, humidity control, and airflow. The total capital cost is approximately $2.5 million, netting $1.5 million after government rebates.
Market and Sales Strategy
Humble currently sells all its flower on a B2B basis to other licensed producers. Post-retrofit, SSC plans a 50 percent B2B and 50 percent consumer packaged goods sales mix, targeting both domestic and international markets. Assuming these proportions, projected gross revenue ranges from a low case of $53.5 million to a base case of $58.5 million and a high case of $65.5 million. Adjusted EBITDA is expected to increase from a low case of $10.7 million, to a base case of $14.2 million, and a high case of $18.7 million.
SSC also reported achieving approximately $7.8 million in annual payroll savings, 44 percent lower than pre-acquisition levels, demonstrating consolidation synergies.
Jeff Swainson, President and CEO, said the $1.5 million net retrofit investment is expected to pay back in under a year, materially increasing revenue, EBITDA, and cash flow. SSC positions Humble as one of the few large-scale, high-quality indoor cannabis cultivation assets outside the major licensed producers in Canada.
For more information:
Simply Solventless Concentrates Ltd.
[email protected]
simplysolventless.ca
