Helix Technologies Sells Security Guarding Business

COLORADO: Helix Technologies announced today the divestiture of its security guarding business. The strategic decision to sell the guarding unit solidifies Helix’s transition into a pure play technology company focused on the cannabis industry.

The divestiture of the guarding business is expected to increase gross margins and allow management to focus on growing the Company’s scalable, high margin suite of critical technology infrastructure services. Denver-based, Veteran-owned Invicta Group purchased the business and Security ProAdvisors LLC represented Helix in the sale. Helix will use the net proceeds to pay off existing liabilities and strengthen its working capital position.

“We are incredibly proud of what we have accomplished with Helix Security. In a short time, we went from start-up–without a single client– to the undisputed leader in the Colorado security market, clearing the field of well-established, larger competitors, and leveraged that dominant position to expand into higher-margin critical technology infrastructure, and data. Now we will continue to bring that same discipline to bear – focused solely on our core technology strengths and on creating a more streamlined value proposition for investors” said Zachary L. Venegas, Helix Technologies’ Executive Chairman and CEO. “The additional working capital and narrowed focus provided by the divestiture will allow us to accelerate growth and continue shaping the cannabis technology landscape.”

Paul Ballenger, Invicta Group CEO added “This is a tremendous opportunity for us and our investors. Helix built a dominant business, and I could not be more excited to leverage our expertise to continue the rapid growth. Recent social unrest has underlined the need for this type of service, and I am excited to help our clients continue to grow while feeling safe and confident in their future.”

M&A Activity Heats Up In The Cannabis Industry

NEW YORK: Merger and acquisition (M&A) activity in the cannabis industry is heating up, and market analysts point to several important factors contributing to increased activity.

Profit is always a central issue, and as the founders of companies established years ago seek attractive exit strategies, new players are considering ways to enter the field in a profitable way. The rapid evolution of technology and its increasing application also serve as catalysts for M&A, as larger companies pursue opportunities that are positioned for current or near-term commercial availability. Such expertise and assets developed by smaller brands could potentially turn them into attractive targets for M&A activity.

As Canada prepares to legalize the recreational use of marijuana next summer, the push for M&A becomes even greater. Since the beginning of the fourth quarter of 2016, an average of approximately 3.2 deals have been closing per week well into 2017.  In comparison, the average for the same period one year ago was approximately 1.4 deals. Analysts note an increase in interest from Canadian companies that wish to cross the border to become a part of the U.S. cannabis industry.

Generally, M&A activities focus on companies and facilities that already have well-developed positions in the field. In 2017, one of the oldest marijuana dispensaries in Denver sold to a Colorado enterprise . The fate of the two-best selling marijuana retailers in Washington was similar. The initial price tag set for the two businesses was $50 million. Developments on the Canadian market have also been pretty dynamic in 2017. The trend will potentially be upheld in the year to come and strategic interest will fall on innovators in the field of cannabis extraction and CBD oil delivery.