We reported on January 7th that Helix TCS Inc (OTCMKTS:HLIX) was set for a major breakout. The stock is up 111% since then. While that’s an impressive jump, HLIX is still off its 52-week high of $4.01 seen a year ago. Are new highs in store for Helix after its latest acquisition?
First up, a little background info for those that are not familiar with HLIX. Helix TCS Inc is a leading provider of ancillary services for the legal cannabis industry, helping owners and operators of licensed cannabis businesses stay competitive and compliant while mitigating risk. Through its proprietary technology suite and security services, Helix TCS provides comprehensive supply chain management, compliance tools, and asset protection for any license type in any regulated cannabis market. Helix TCS’s products reach over 2,000 customer locations in 33 states and 5 countries and have processed over $18 billion in cannabis sales.
Last month, HLIX acquired Amercanex International Exchange, one of the first and most influential cannabis electronic trading platforms in the legal cannabis industry. The acquisition provides Helix with a sophisticated Electronic Communications Network (ECN) that can integrate blockchain technology to facilitate real-time transactions of wholesale cannabis product between licensed operators in regulated markets.
Amercanex’s electronic marketplace enables compliant wholesale product transaction capabilities in over a dozen legal cannabis markets within the US and internationally, including the key markets of Canada, California, Washington, Colorado, Nevada, Oregon, New York, Illinois, and more. HLIX Chairman and CEO Zachary l. Venegas said:
“Helix TCS now possesses the unique technology suite needed to scale the industry’s first compliant wholesale cannabis exchange worldwide. Clients of BioTrackTHC, Amercanex, and Cannabase, which is likely the largest network of licensed cannabis operators in the industry, will be the first to enjoy the competitive advantages and benefits of our industry-leading Critical Infrastructure Services Platform.”
Amercanex’s blockchain-powered technology was built to be SEC/CFTC compliant and provides participants with real-time electronic transaction notifications and audit systems, QA lab results, and dispensary loyalty programs for repeat buyers. Amercanex is currently available in the following regulated cannabis markets: Canada, California, Washington, Oregon, Nevada, Montana, New Mexico, Arizona, Minnesota, Illinois, Michigan, Georgia, New York, Vermont, New Hampshire, Maine, Massachusetts, and Maryland; with more coming in 2019.
#1 Point of Sale
Helix was just ranked as a top revenue generating ancillary business for the licensed cannabis industry by Cannabis Business Executive. Through BioTrackTHC, Helix TCS ranks as the #1 revenue-generating company within the highly competitive dispensary point of sale category and ranks as #33 overall among ancillary cannabis businesses (based on total revenue generation). Placed at #75 in 2017, Helix TCS made a significant jump by more-than-doubling annual revenue from 2017 to 2018.
Building on its recent merger with BioTrackTHC in 2018 and Cannabase in 2016, the acquisition further expands Helix TCS’ Critical Infrastructure Services Platform. This platform enables new and already operating cannabis businesses, as well as ancillaries and governments, to manage mission-critical infrastructure in their supply chain, inventory, and compliance functions.
Currently trading with a market cap of $143 million, HLIX is an exciting story among small caps. As we said in January, HLIX is the perfect pick-and-shovel play that will benefit from the growth of the cannabis space. We believe it’s not a question of if, but when HLIX reaches its old highs.
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Disclosure: We have no position in HLIX and have not been compensated for this article.
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