The last time we covered Helix TCS Inc (OTCMKTS:HLIX) was back in March when shares had dropped from $4.50 to $1.10 before rocketing back to $4 a share. Since then, the stock has been fairly quiet and encountered a lot of resistance at the $1.50 level.
Now we are taking a look at HLIX again as the recent stock action has piqued our interest. If the stock breaks above $1.50, we could see a major breakout in HLIX.
For those that are not familiar with Helix, the company 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 32 states and 5 countries and have processed over $18 billion in cannabis sales.
#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. Chairman and CEO Zachary Venegas said:
“Helix TCS has made significant progress, which is illustrated by the company jumping over 40 places on CBE’s annual ancillary business ranking list. We are highly confident that we are positioned for continued growth and success into 2019 and beyond, as demonstrated by our execution in 2018.”
Last month, HLIX expanded its international footprint to Colombia, with multiple licensed cannabis cultivators and manufacturers already implementing BioTrackTHC. In response to the growing demand for its leading cannabis technologies internationally, the Company launched a Spanish language user interface and increased its Spanish-speaking technical support staff across multiple offices, allowing it to continue its Latin American expansion. The newly launched Spanish interface is the first of multiple languages to be released by BioTrackTHC as it continues its international expansion, increasing its accessibility for business owners and operators in legal cannabis markets worldwide. Chairman & CEO Zachary Venegas commented:
“It goes without saying that BioTrackTHC, as a Helix TCS subsidiary, provides international licensed operators with the same support and outstanding service that we deliver in the US, which means offering a growing set of languages and an ever-improving suite of functionalities. Our goal is to expand our integrated technology and services platform into every legal cannabis market, so as more states and countries adopt new legislation, we will continue expanding our operations and capabilities in advance to meet their needs.”
In countries like Colombia, where production costs are low, Helix TCS is investing in critical software infrastructure to ensure licensed operators are prepared as they scale into high-volume production hubs. In addition to Colombia, Helix TCS currently provides cannabis software solutions in multiple international markets including Jamaica, Australia, New Zealand, and more. The addition of Spanish-speaking support enables the company to provide better regional assistance to these licensees, as well as US-based Spanish-speaking businesses and their employees. As these markets develop and legislation begins to allow for global marketplaces, Helix TCS is already positioned to be the leading technology platform facilitating this international cannabis trade.
HLIX Q3 results
HLIX delivered strong results in Q3. Here are the highlights:
- Total revenues increased 176% to $3.1 million
- Gross profit for the quarter was $1.2 million, a 40% gross margin
- Closed acquisition of Argentine software development firm
- BioTrackTHC completed a SOC 2 security audit and became the first seed-to-sale firm to complete a financial statement audit
Currently trading with a market cap of $86 million, HLIX is an exciting story among small caps. 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 the major breakout will come for HLIX stock.
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Disclosure: We have no position in HLIX and have not been compensated for this article.
Image courtesy of Mr. Nixter via Flickr