Toronto, Ontario–(Newsfile Corp. – February 23, 2022) – Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company“): This press release is being disseminated by HoldCo (St. Catharines) Ltd. (the “Acquiror“) as required by National Instrument 62-103 – The Early Warning System and Related Take-Over Bids and Insider Reporting Issues, in connection with its acquisition of securities of Hill Street.
Pursuant to a series of normal course purchases by the Acquiror through the facilities of the TSX Venture Exchange, and pursuant to the exercise of outstanding warrants held by the Acquiror, the Acquiror acquired 10,000,000 common shares in the capital of the Company at a purchase price of $0.05 per Common Share.
Prior to the acquisition, the Acquiror controlled 48,797,855 Common Shares, representing 22.99% of the 212,294,453 issued and outstanding Common Shares. After the acquisition the Acquiror controlled 58,797,855 Common Shares, representing 26.88% of the 218,751,453 issued and outstanding Common Shares.
As to 3,543,000 Common Shares that were acquired on the open market through the facilities of the TSX Venture Exchange, the Acquiror is relying on the exemption set forth in Section 4.2 of National Instrument 62-104 – Take Over Bids and Issuer Bids (“NI 62-104“), on the basis that this transaction is a normal course purchase by the Acquiror.
As to 6,457,000 Common Shares that were acquired pursuant to an exercise of warrants, the Acquiror is relying on the exemption set forth in Section 4.2 of NI 62-104, on the basis that this transaction is being made pursuant to a private agreement between the vendor and the Acquiror.
The Acquiror acquired the Common Shares for investment purposes. The Acquiror intends to review its investment in Company on a continuing basis and may, from time to time and at any time, acquire or cause to be acquired additional equity or debt securities or other instruments of Company, or dispose or cause to be disposed such equity or debt securities or instruments, through open market transactions, private placements by Company and other privately negotiated transactions, or otherwise, in each case in accordance with applicable securities laws.
An early warning report will be filed by the Acquiror under applicable securities laws and will be available on Company’s SEDAR profile at www.sedar.com. A copy of the early warning report may also be obtained from James Leech, Corporate Secretary, jleech@torkinmanes.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Not for dissemination in the United States of America.
Toronto, Ontario–(Newsfile Corp. – January 6, 2022) – Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company“) announces the appointment of a permanent CEO and new progress made toward its growth agenda.
Hill Street Appoints Craig Binkley as Permanent CEO
Hill Street announces the appointment of Craig Binkley as its full-time Chief Executive Officer. Craig has been operating in the interim Co-CEO role along with fellow board member Lori Senecal since February 9, 2021. Lori will transition out of the interim Co-CEO role and will continue in her current Board of Director (“Board“) role.
Board Chairman Jack Fraser commented, “The support and skill that both Lori and Craig have provided to Hill Street and its shareholders over the past ten months have been exceptional. Designing and launching a new strategy around out-licensing of its DehydraTECH™ global usage rights has been transformative for Hill Street and has created the foundation of its ongoing strategic direction.” Jack further stated, “Having Craig step into the Chief Executive Officer role full time provides operational continuity to the business and the strong eco-system of partners that has been developed, and it solidifies the leadership of Hill Street behind the clear growth plan that has been put in place. As a seasoned executive with key leadership roles in the global beverage space with The Coca-Cola Company along with blue-chip B2B, pharmaceutical and cannabis operational experience, we are very fortunate to have been able to bring Craig on as our CEO.”
As the Company’s business model was being re-engineered over the past 10 months, the Company had an interim Co-CEO structure to ensure breadth of senior leadership presence during the time of dynamic transition across a range of critical business initiatives.
“The interim plan of having two globally experienced CEOs has been important during the Company’s transition, as we worked to transform the business model and to set up the operational backbone to support the breadth and scale of the global growth agenda,” stated Lori Senecal, Hill Street Board member. “We now feel the transition period is complete and the time is right for one focused CEO to power the company forward. Given Craig’s highly relevant background and deep experience with Hill Street, he is absolutely tailor made to lead this next chapter.”
“My joint roles as interim Co-CEO and Board Member have allowed me to more deeply assess the opportunities and needs of the business first-hand and to gain operational insight into the lines of business with the best growth and profitability potential,” commented Craig Binkley, CEO of Hill Street. “Looking ahead, the roadmap is clear and I could not be more excited to lead the team in driving the Company forward.”
Continued Growth Momentum Across the Business
Cannabis Technology Licensing Business
As noted in its one-year update press release, the path to Hill Street’s commercialization of patented DehydraTECH™ intellectual property post-acquisition of global usage rights has been rapidly operationalized in the US through both the organic growth of existing licensees of the technology and a systematic strategy for the addition of new licensees. The key partnership with DeHydr8 MI, LLC in Michigan, where consumer products powered by DehydraTECHTM are now on-shelves in Michigan, is being expanded to Illinois as a next step to execute our playbook to launch new US states with locally-licensed producers.
Cannabis-Infused Beverage Distribution
The path toward achieving national distribution in Canada for the Company’s (V)ia Regal cannabis-infused sparkler beverages continues as purchase orders for both (V)ia Regal Pink Grape Sparkler and White Grape Sparkler have been received through the Company’s manufacturing partner Molecule Holdings, Inc., for distribution in the provinces of British Columbia and Northwest Territories. These orders represent the first in these geographies and the first orders in Canada for the (V)ia Regal White Grape Sparkler product.
Alcohol-Free Wine Distribution Business
Continuing to act as a strong revenue foundation for Hill Street, Vin(Zero)’s line of award-winning alcohol-free wines remains on-trend with consumer desires for better-for-you foods & beverages. Vin(Zero) continues to delight consumers and drive trial of alcohol-free wines by participating in a number of initiatives for Dry January through social media, influencer partnerships and an increased focus on ecommerce sales.
Other Announcements
The Board of Hill Street would also like to thank Raymond Bisaillon, who is stepping down as a member of the Board. Raymond has been a valuable member of the Board since February 2021, helping to frame and drive opportunities following the Company’s acquisition of the global usage rights to DehydraTECH™ for use in the production of THC and CBD cannabis products. Raymond remains a loyal shareholder and supporter of the Company but has decided to focus on developing his Sudbury-based business and his passionate leadership of local philanthropic initiatives.
Additionally, the Company announces that its Annual and Special Meeting of Shareholders (the “AGM“) will take place at 10am EST on March 1, 2022 as a virtual meeting. More information on the AGM will be provided to shareholders prior to the meeting.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company Inc. is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience Corp.’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of cannabis ingredients.
Hill Street Beverage brands include a portfolio of award winning Vin(Zero) alcohol-freewines. Hill Avenue Cannabis brands include (V)ia Regal Pink and White Grape Sparklers.
For more information on our Hill Avenue Cannabis business activities or to check out Hill Street Beverage’s award-winning alcohol-free line-up and order product to be delivered straight to your home go to www.hillstreetbeverages.com.
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “would”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Q1 net revenue more than doubled with explosive growth of 120% year over year
Q1 gross profit also increased by 129% year over year
Powered major new launch of THC product line by leading brand of CBD dip pouches Cannadips, produced with fast-acting DehydraTECH™ cannabinoid delivery technology
Added important new DehydraTECH™ licensing agreement with DeHydr8 MI, LLC to boost rapid commercialization at scale in major US B2B and B2C markets
Toronto, Ontario–(Newsfile Corp. – November 29, 2021) – Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”) reported its fiscal 2022 results for the three-month period ended September 30, 2021. A complete set of financial statements and Management’s Discussion and Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.
RESULTS OF OPERATIONS
The following table summarizes certain financial information of the Company for the three months ended September 30, 2021 and the three months ended September 30, 2020.
Results for the Three Months Ended
September 30, 2021
September 30, 2020
Gross Revenue
$660,483
$384,450
Chargebacks and listing fees
($55,744)
($109,738)
Net Revenue
$604,739
$274,712
Direct Costs
$270,317
$128,706
Gross profit
$334,422
$146,006
Ordinary Operating Expenses
$650,016
$450,720
Other One-time Expenses
$16,146
$4,500
Non-Cash Expenses
$219,302
$166,621
Gain (Loss) before other Income
($551,042)
($475,835)
Other income (Expenses)
Foreign exchange gain (loss)
$1,242
1,517
Write-off of inventory
($18,057)
($1,535)
Loss on Fair Value of Consideration
($35,416)
$0
Gain on settlement of liability
$213
$0
Other Income
$3,500
$0
Income (Loss) and comprehensive Income (loss) for the period
($599,560)
($475,853)
Basic and diluted income (loss) per common share
($0.00)
($0.01)
Weighted average number of common shares outstanding
212,294,452
112,085,463
BUSINESS HIGHLIGHTS FOR FISCAL Q1 2022
Throughout the quarter, Hill Street continued to build the resources and operations of its new global, multi-business-line model. Both Hill Street’s Vin(Zero) premium alcohol-free wine brands and its Hill Avenue Cannabis Inc.’s (“Hill Avenue“) (V)ia Regal cannabis-infused sparkler brand continued their strong momentum. Critically, this period also saw expansion of the US licensing of our cannabinoid delivery technology DehydraTECH™, resulting in both revenue growth and extremely strong margin contribution. These results increasingly demonstrate the impact of this next generation business model.
“Even at this early stage, the transformative power of our DehydraTECH™ licensing business on our overall financial performance is very evident in terms of extremely favorable margin contribution and the abundant potential to pursue global scale over time,” commented Craig Binkley, Co-CEO of Hill Street. “This quarter, we were able both to add organic growth opportunities with existing licensees and to establish new licensing relationships as we continue our penetration into the legal states in the US.”
Q1 consolidated net revenues more than doubled with explosive growth of 120% versus same quarter previous year
This accelerated growth in consolidated net revenue reflects the addition of cannabis-related revenues, which did not exist in the same quarter of prior year. This new revenue source, which began to be recognized in Q3 of fiscal 2021, continued its growth trajectory, increasing 32% this quarter over previous quarter (Q4 FY2021). The upward trajectory shows the impact of increased DehydraTECH™ licensing revenues from existing partners in the US market. Additional US licensing partnerships that have been developed and announced this quarter did not yet impact the financial results.
Another major contributor to net revenue growth was Hill Street’s Vin(Zero) alcohol-free wine sales which increased 66% versus same quarter year ago fueled by geographic expansion into the Australia market, increased brand awareness, and continued favourable cultural tailwinds as more consumers embrace mindful consumption yet still demand great taste experiences.
Q1 gross profit also more than doubled versus same quarter previous year
The significant 129% increase in gross profit in Q1 demonstrates the growing impact of DehydraTECH™ licensing and expansion on elevating profit metrics.
Gross profit as a percentage of revenue increased dramatically to 51% from 38% in the prior year, primarily driven by the addition of the higher margin cannabis technology licensing business.
“Our Q1 results began to tangibly demonstrate the kind of accelerated progress we can generate as we more fully operationalize our multi-business-line model,” stated Hill Street’s CFO, Hinta Chambers. “Of particular note this quarter was the step-change in revenue growth and gross profit improvement which both achieved triple digit increases, affirming our strategic approach.”
Hill Street continues building its DehydraTECH™ licensing line of business by organically expanding existing licensing relationships and adding new licensing relationships
During the fiscal Q1, the Company worked on expanding existing licensing relationships for DehydraTECH™ intellectual property with companies operating commercially in the United States in California, Colorado, Illinois, Massachusetts, and Oklahoma. These states are expected to represent $12.9B in cannabis sales in 20211.
Cannadips (California)
On August 25th, 2021, Hill Street announced that its California DehydraTECH™ licensee Cannadips, had started production in preparation to launch a new THC-infused line of its top-selling CBD dip pouch products. Powered by DehydraTECH™ fast-acting technology through a licensing agreement with Hill Avenue, this latest innovation follows the extremely successful use of DehydraTECH™ technology in Cannadips’ national CBD product lineup.
Based in Humboldt County, California, Cannadips is the leading brand of smokeless nicotine and tobacco-free hemp dips in the United States. This new product line launched subsequent to the close of fiscal Q1 on November 8th, 2021.
DeHydr8 MI, LLC (Michigan)
Also, during the quarter, the Company executed a major new DehydraTECH™ licensing agreement in Michigan with DeHydr8 MI, LLC (“DeHydr8“), on July 26th, 2021. With this agreement, DeHydr8 became Hill Street’s first US licensee to gain rights to market DehydraTECH™ for THC cannabis products within both the B2B and B2C markets. Since then, DeHydr8 has leveraged both its deep relationships and years of experience in the cannabis market to enter into agreements with top quality licensed producers (“LPs“) to produce consumer products powered by DehydraTECH™. These partners will be the first LPs in the State of Michigan to produce products powered by DehydraTECH™ which the company anticipates will begin in fiscal Q2.
Michigan adds another important state to the Company’s US operating footprint, ranking among the top five states in the US for cannabis sales and growth and currently on track to register $1.4-$1.7 billion in annual cannabis sales in 2021. This new commercial operation in Michigan significantly accelerates the Company’s ability to commercialize DehydraTECH™ technology in other legal US states.
The total US market is projected by BDS Analytics to reach $24B in sales in 2021 and to practically double to $47.6B in 20262, with continued growth in current markets as well as several large states becoming newly legal expansions for adult use. Four new US states passed legalization measures in the November 2020 elections, and four more new states have approved legalization measures during calendar 2021, including New Jersey and New York, where the latter is predicted by BDS Analytics to be a top five market by 20263.
“The financial progress we have seen in fiscal Q1 is largely from expanding our engagements with existing partners and licensees. We look forward to realizing the impact of the new partners and geographies we have since put in place and those we continue to pursue, as we pave the road to future growth,” said Lori Senecal, Co-CEO of Hill Street.
Preparations continued on securing cannabis processing license for Hill Avenue’s Lucknow facility
The Company continued preparations for obtaining the Health Canada Standard Processor License for its Lucknow cannabis facility at which it plans to produce DehydraTECH™ fast-acting cannabinoid powder for potential B2B and B2C sales. The company began construction at the facility during this period.
Permanent CEO search
The interim plan of having two globally experienced CEOs, both highly driven and passionate about Hill Street, has been very important during the Company’s transition. The Company has moved from one business predominately operating in Canada, to creating three distinct businesses with global potential and has worked to set up the operational backbone that could support the breadth and scale of its growth agenda. When the Company considers that this transition period is complete, it will look to have one dedicated CEO to execute the plan with continued speed and excellence.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company Inc. is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience Corp.’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of cannabis ingredients.
Hill Street Beverages brands include Vin(Zero) alcohol-free wines and Hill Street Craft Brewed Lager, and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.
For more information on our business activities or to check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home go to www.hillstreetbeverages.com.
For more information:
Craig Binkley, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., craig@hillstreetbevco.com
Lori Senecal, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., lori@hillstreetbevco.com
FORWARD-LOOKING STATEMENTS
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “would”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
In Q4, explosive gross profit growth (up 179% vs. Q4 FY2020) driven by addition of high-margin DehydraTECH™ licensing revenues; strong net revenue growth of 60% vs. Q4 FY2020
For the full fiscal year, increased gross profits by 55% and grew net revenue by 27% vs. previous fiscal year, despite the pandemic
Added two new lines of business to legacy alcohol-free beverage business – 1) cannabis-infused beverage sales and 2) patented cannabis technology licensing
Acquired exclusive global usage rights for leading cannabinoid delivery technology DehydraTECH™ for use in THC products and drove rapid US commercialization of the technology through out-licensing
Appointed Pearl Chan as Chief Legal Officer and Secretary
Toronto, Ontario–(Newsfile Corp. – October 29, 2021) – Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”) reported its fiscal 2021 results for the twelve-month and three-month periods ended June 30, 2021. A complete set of financial statements and Management’s Discussion and Analysis has been filed at www.sedar.com. All dollar figures are quoted in Canadian dollars.
RESULTS OF OPERATIONS
The following table summarizes certain financial information of the Company for the years ended June 30, 2021, June 30, 2020, and June 30, 2019.
Results for the Year Ended
June 30, 2021
June 30, 2020
June 30, 2019
Gross Revenue
$
2,753,481
$
2,613,923
$
2,423,094
Chargebacks, finance fees, and listing fees
-$558,567
-$883,068
-$1,151,894
Net Revenue
$
2,194,914
$
1,730,855
$
1,280,200
Direct Costs
-$1,071,284
-$1,004,806
-$848,373
Gross profit
$
1,123,630
$
726,049
$
431,827
Operating Expenses (excl. One-time & Non Cash)
$
2,829,462
$
2,453,642
$
3,430,203
One-time Expenses
$
167,548
$
1,242,075
$
1,136,338
Non Cash Expenses
$
1,075,035
$
676,940
$
875,666
Loss before other Income (Expense)
-$2,948,415
-$3,646,608
-$5,010,380
Other income (Expenses)
Foreign exchange gain (loss)
-$5,393
-$7,975
-$17,240
Gain on favourable interest rate
$
6,541
$
17,939
–
Gain on settlement of liability
$
137,480
$
43,217
–
Loss on fair value of Consideration
-$259,216
–
–
Charges related to public company listing
–
–
-$918,345
Write-off of intangibles
–
-$8,000
–
Write-off of inventory
-$17,258
-$80,445
-$7,298
Other Income
$
30
$
194
$
9,411
Income (Loss) and comprehensive income (loss) for the period
-$3,086,231
-$3,681,679
$
5,943,852
Basic and diluted loss per common share
-$0.02
-$0.04
-$0.07
Weighted average number of common shares outstanding
141,775,866
104,401,665
85,543,433
BUSINESS HIGHLIGHTS FOR THE FISCAL YEAR END
Hill Street’s 2021 fiscal year marks a time of significant corporate development for the Company. During the fiscal year, important new business lines and revenue streams were created, key partnerships were cemented, and operating systems were put into place to prepare the company for the next stage of global growth. In the later part of the fiscal the Company began to execute this transformational business model and saw important impact to financial metrics such as gross profit and net earnings.
“This year marked transformational progress as we made a bold push into the progressive cannabis solutions space,” said Craig Binkley, interim co-CEO of the Company. “While our alcohol-free and cannabis infused beverage lines continue to provide a strong and growing base of revenue, the second half of our fiscal year added the power of DehydraTECH™ licensing revenues and extremely strong margin contribution as exciting proof of the potential of this next generation business model.”
The Company expanded from one line of business to three distinct lines and revenue streams, adding Hill Avenue Cannabis Brands and Hill Avenue Cannabis Technologies to its legacy Hill Street alcohol-free beverages business. This development was supported by several important new partnerships and transactions:
Acquired the global usage rights to cutting-edge DehydraTECH™ cannabinoid delivery technology for use in THC cannabis infused products and licensed certain rights to use DehydraTECH™ technology in CBD cannabis infused products, from subsidiaries of Lexaria Bioscience Corp.
Created a partnership with Molecule Holdings Inc. to co-pack cannabis-infused beverages under the Hill Avenue Cannabis ‘(V)ia Regal’ brand in Canada. The first product, ‘(V)ia Regal Pink Grape Sparkler’, launched on May 18, 2021 in Ontario, Canada.
Acquired and expanded licensing relationships for DehydraTECH™ intellectual property with companies operating commercially in the United States in the states of California, Colorado, Illinois, Massachusetts and Oklahoma. These states represent an expected $12.9B in total 2021 cannabis sales and are the number one, two, three, five, and eleven revenue markets in the United States[1].
FINANCIAL HIGHLIGHTS FOR THE FISCAL 2021 YEAR END
Gross Profit Increased 55% while Consolidated Net Revenue Grew 27% This Fiscal Year Versus Previous Fiscal Year, Despite the Pandemic
Strong gross profit performance was driven by the DehydraTECH™ licensing business, which contributed significantly higher margins than the legacy alcohol-free business, and 25% growth in alcohol-free gross profit from sales increases and improvements in supply chain management that led to cost reductions on retailer fees and chargebacks.
Additionally, consolidated net revenue increased significantly versus prior year due to:
The Company’s first full quarters of cannabis-related revenues were realized in fiscal Q3 and Q4, from DehydraTECH™ licensing activity in the US and Canada.
Although supply chain challenges and COVID-19 related delays impacted alcohol-free beverage sales at various points in the year, momentum returned to the business with strong orders to replenish depleted stock by year-end. Additionally, online orders grew 82% versus prior fiscal year as online purchasing was more broadly adopted during the pandemic by consumers and specialty distributors.
Significant reductions in chargebacks and retailer fees for alcohol-free beverages were realized versus previous fiscal year due to improvements in supply chain management.
Q4 HIGHLIGHTS
Q4 Gross Profit Increased 179% and Consolidated Net Revenues Increased by 60% Versus Same Quarter Previous Year
In this quarter, improvements in supply chain management in the Company’s alcohol-free business on significantly higher net revenues led to cost reductions of retailer fees and chargebacks, but the significant gross profit increase in the quarter compared to the same quarter previous year shows the impact of the high margins associated with the DehydraTECH™ licensing business.
“Our Q4 results began to tangibly demonstrate the step-change that the new multi-business-line model has on the key financial metrics of the Company. This is particularly evident in the gross profit line where the DehydraTECH™ business not only contributed growth but drove dramatic improvements to the overall margins of the Company,” stated Hill Street’s CFO, Hinta Chambers.
The Company Continued Building its Hill Avenue Cannabis Technologies Line of Business
The Company continued building its B2B DehydraTECH™ licensing business which is focused on:
licensing usage rights for DehydraTECH™ patented global intellectual property to licensed cannabis CPG companies for application in their cannabis-infused consumer products; and
licensing usage rights to extractors for converting cannabis oil into DehydraTECH™ powder to preserve cannabinoid potency and extend shelf life in the supply chain for cannabis-infused CPG brands and products.
During the fiscal Q4, the Company expanded licensing relationships for DehydraTECH™ intellectual property with companies operating commercially in the United States in California, Colorado, Illinois, Massachusetts, and Oklahoma. These states are expected to represent $12.9B in 2021 cannabis sales[i].
Also, during the quarter, the Company prepared a major new licensing agreement in Michigan, with DeHydr8 MI LLC (“DeHydr8“), which was executed on July 26th, 2021, subsequent to quarter and fiscal year end. While as part of Hill Street’s acquisition of the DehydraTECH™ technology from Lexaria, Hill Street acquired existing licensing agreements with licensees operating in the B2C market, DeHydr8 became Hill Street’s first US licensee to gain rights to market DehydraTECH™ for THC cannabis products within both the B2B and B2C market. Since then, DeHydr8 has leveraged both its deep relationships and years of experience in the cannabis market to enter into agreements with top quality LPs to produce consumer products powered by DehydraTECH™.
Michigan adds another important state to the Company’s US footprint, ranking among the top five states in the US for cannabis sales and growth and currently on track to register $1.4 – $1.7 billion in annual cannabis sales in 2021[2]. This new commercial operation significantly accelerates the Company’s ability to commercialize DehydraTECH™ technology in other legal US states.
The total US market is projected by BDS Analytics to reach $24B in sales in 2021 and to practically double to $47.6B in 2026[3], with continued growth in current markets as well as several large states becoming newly legal expansions for adult use. Four new US states passed legalization measures in the November 2020 elections, and four more new states have approved legalization measures during calendar 2021, including New Jersey and New York, where the latter is predicted by BDS Analytics to be a top five market by 2026[4].
“As we look to fuel future growth, the US market alone, being so large and still growing, represents a highly scaled source of revenue for the Company to pursue,” said Lori Senecal, interim Co-CEO of Hill Street. “We are confident that revenue growth combined with the rich margins we’re seeing in IP licensing will continue to drive strong improvement in net earnings and in the overall financial metrics of the Company.”
Hill Avenue Cannabis Brands Launched its First Beverage in Ontario
Hill Avenue’s first cannabis infused beverage, ‘(V)ia Regal Pink Grape Sparkler’, a premium sparkler made from grapes imported from European vineyards, became available for retail purchase midway through fiscal Q4 on May 18, 2021, at the Ontario Cannabis Store. The first shipment sold out in less than ten days and several follow-on purchase orders have since been fulfilled.
Progress Continued on Securing Cannabis License for Hill Avenue Through the Lucknow Facility
The Company continued preparations for obtaining the Health Canada Standard Processor License for its Lucknow cannabis facility to produce DehydraTech™ fast-acting cannabinoid powder for potential B2B and B2C sales. Subsequent to the quarter, construction commenced at the facility as Covid-19 restrictions, delays and supply challenges began to ease.
CEO Update
The interim plan of having two globally experienced CEOs, both highly driven and passionate about Hill Street, has been very important during the Company’s transition. The Company has moved from one business, predominately in Canada, to creating three distinct businesses with global potential and has worked to set up the operational backbone that could support the breadth and scale of its growth agenda. When the Company considers that this transition period is complete, it will look to have one dedicated CEO to execute the plan with continued speed and excellence.
Appointment of Chief Legal Officer and Corporate Secretary
Hill Street also announces another move to support its growth strategy with the appointment of Pearl Chan as the Company’s first Chief Legal Officer. Pearl has valuable experience navigating the complexities of the cannabis legal environment both in Canada and across the USA, having recently served as General Counsel of a public Canadian cannabis company, and then Associate General Counsel of its acquiror, a public US cannabis multi-state operator. With the Company’s significant opportunities in Canada, the US and other global markets, Pearl will be instrumental in accelerating and supporting the Company in that development. Pearl also assumes the role of Corporate Secretary of the Company effective immediately.
Other Announcements
The Company wishes to correct an announcement made on August 16, 2021, wherein it announced that it issued 7,575,758, common shares to Lexaria CanPharm ULC in satisfaction of a $500,000 deferred payment obligation owing under the asset purchase agreement announced on December 10, 2020. The amount of the payment was misstated. The correct amount paid was $643,939 which is a partial payment of the $1,000,000 of deferred purchase price to be paid in shares of the Company, as previously disclosed.
Subsequent to year end, a former employee filed a claim against the Company in the amount of $500,000 for employment-related compensation. The Company has assessed the merits of the claim, has filed a defense, and denies any liability in connection with this claim.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company Inc. is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience Corp.’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of cannabis ingredients.
Hill Street Beverages brands include Vin(Zero) alcohol-freewines and Hill Street Craft Brewed Lager, and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.
For more information on our business activities or to check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home go to www.hillstreetbeverages.com.
For more information:
Lori Senecal, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., lori@hillstreetbevco.com
Craig Binkley, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., craig@hillstreetbevco.com
FORWARD-LOOKING STATEMENTS
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “would”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Not for dissemination in the United States.
[1] Annual Marijuana Business Factbook, 2021, 9th Edition, Marijuana Business Daily, pages 16 – 17
[2] Annual Marijuana Business Factbook, 2021, 9th Edition, Marijuana Business Daily, pages 16 – 17
Toronto, Ontario–(Newsfile Corp. – October 13, 2021) – Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company“): This press release is being disseminated by HoldCo (St. Catharines) Ltd. (the “Acquiror“) as required by National Instrument 62-103 – The Early Warning System and Related Take-Over Bids and Insider Reporting Issues, in connection with its acquisition of securities of Hill Street.
Pursuant to a private contract, the Acquiror acquired 7,000,000 common shares in the capital of the Company at a deemed purchase price of $0.05 per Common Share.
Prior to the acquisition, controlled 41,797,855 Common Shares, representing 19.69% of the 212,294,453 issued and outstanding Common Shares. After the acquisition the Acquiror controlled 48,797,855 Common Shares, representing 22.99% of the 212,294,453 issued and outstanding Common Shares. The Acquiror is relying on the exemption set forth in Section 4.2 of National Instrument 62-104 – Take Over Bids and Issuer Bids, of the formal bid rules, on the basis that this transaction is being made pursuant to a private agreement between the Acquiror and the vendor.
The Acquiror acquired the Common Shares for investment purposes. The Acquiror intends to review its investment in Company on a continuing basis and may, from time to time and at any time, acquire or cause to be acquired additional equity or debt securities or other instruments of Company, or dispose or cause to be disposed such equity or debt securities or instruments, through open market transactions, private placements by Company and other privately negotiated transactions, or otherwise, in each case in accordance with applicable securities laws.
An early warning report will be filed by the Acquiror under applicable securities laws and will be available on Company’s SEDAR profile at www.sedar.com. A copy of the early warning report may also be obtained from James Leech, Corporate Secretary, jleech@torkinmanes.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Not for dissemination in the United States of America.
Evolution Grow and For the Love of Charlie are the first in the state to create DehydraTECH(TM) powered fast-acting products
Toronto, Ontario–(Newsfile Corp. – September 1, 2021) – Hill Street Beverage Company Inc. (TSXV: BEER) (the “Company“) is pleased to announce that its partner, DeHydr8, recently signed agreements with two of Michigan’s best-in-class licensed producers (“LPs“) within weeks of DeHydr8 becoming a Hill Street licensee.
In a push to expand cutting-edge DehydraTECH™ technology into the US with B2B market scale, Hill Street announced a licensing partnership with DeHydr8 MI on July 27th, 2021. Since then, Dehydr8 has leveraged its deep relationships and years of experience in the Michigan cannabis market to create agreements with two LPs – Evolution Edibles, and For The Love of Charlie (“FTLOC“). These partners will be the first LPs in the State of Michigan to produce products powered by DehydraTECH™.
Evolution Edibles is focused on creating the best edible flavor profiles in the industry. They offer a broad range of choices for consumers ranging from micro dosed products for the canna-curious to higher dosed products for more experienced users.
FTLOC is a best-in-class LP focused on the benefits of cannabis and cannabinoids in the Medical Use space. FTLOC creates cannabis products that address multiple indications including but not limited to pain relief, anxiety, sleeplessness, spectrum-related and dermal conditions.
The LPs are working on multiple form factors including edibles and topicals for both Medical and Adult use. Dehydr8 anticipates that the first products from these new partnerships will hit shelves in Michigan as soon as September 2021.
“The fact that Dehydr8 have come out of the gates quickly to sign agreements with top quality LPs is proof of their ability to gain traction in the Michigan market,” said Craig Binkley, Co-CEO of Hill Street. “We’re excited to see them expand the DehydraTECH™ ecosystem with these new like-minded partners who share our belief in the power of cannabis and best in class science to create superior product alternatives.”
DeHydr8 was founded by Todd Webber, Jessica Webber, Craig Aronoff, and Marc Seyburn all from Michigan. The Dehydr8 Team is comprised of top legal counsel in the cannabis industry combined with premier marketing and sales professionals.
“Having The DehydraTECH™ technology behind us is a real competitive advantage,” said Todd Webber, Founder of DeHydr8. “The research credibility that comes from a publicly traded drug and Bioscience company and the continuous scientific advancements that Lexaria Bioscience brings to the technology puts this product well ahead of any fast-acting competitors. Our DeHydr8 Team, working closely with the Hill Avenue Cannabis Team, are quickly bringing fast-acting, predictable and stable products to the Michigan market, and are actively changing the face of Cannabis consumption.”
Findings from extensive scientific studies on the DehydraTECHTM technology performed by Lexaria Bioscience Corp. include:
Increased bioavailability up to 5-10x – to equate to blood absorption by inhalational delivery
Increased brain permeation up to 19x – as demonstrated in animal studies
Avoids first-pass liver metabolism – mitigating unwanted side effects
Reduced time of onset – effects are felt within 15-20 min vs. 60-120 min
Masks unwanted tastes – eliminating the need for sugar-filled edibles
Patented DehydraTECH™ technology improves the way active pharmaceutical ingredients (APIs) enter the bloodstream, delivering advantages including faster onset and more predictable cannabis experiences for consumers.
“We’re delighted that these new partners will now be powered by DehydraTECH™,” said Lori Senecal, Co-CEO of Hill Street.” Our mission is to partner with companies and brands that are driven to deliver premium quality, category leading performance. These Michigan partners align perfectly with these values as they constantly pursue the highest craft quality combined with the most advanced technology to ensure that consumers enjoy a superior experience.”
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of Cannabis ingredients.
Hill Street Beverages brands include Hill Street Craft Brewed Lager, and Vin(Zero), and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.
For more information on our business activities or to check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home go to www.hillstreetbeverages.com.
For more information:
Lori Senecal, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., lori@hillstreetbevco.com
Craig Binkley, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., craig@hillstreetbevco.com
About DeHydr8
DeHydr8 is focused on delivering the premier fast-acting and most bioavailable technology, DehydraTECH™, to our manufacturer partners in the US Market for application in Cannabis 2.0 products.
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Hill Street adds additional cannabis and beverage experience to the team
Toronto, Ontario–(Newsfile Corp. – August 25, 2021) – Hill Street Beverage Company Inc. (TSXV: BEER) (the “Company“) is pleased to announce the expansion of its commercial development team to better align talent with its business vision and global growth strategies going forward. Hill Street is pleased to welcome Bowen Hou to the role of Director of Beverage Strategy and Development. Bowen will focus on the growth and development of its beverage businesses: alcohol-free Vin(Zero) and cannabis infused (V)ia Regal.
“We are building our capabilities and team for the future direction of our business. We were fortunate to find a unique talent with dedicated experience in both cannabis and beverages to help maximize our performance going forward on both fronts,” said Craig Binkley, Co-CEO of Hill Street. “Bowen has worked with PepsiCo, Humble + Fume and Zenabis (acquired by Hexo). Add in his additional CPG experience from Church & Dwight and he’s the perfect blend of mainstream blue-chip experience that has pivoted into the emerging world of cannabis. It is an ideal combination that was exactly what we were looking for.”
At Humble + Fume, Bowen was responsible for branding, marketing, sales and distribution through provincial cannabis boards across Canada. At Zenabis, he led the Namaste and Re Up brands. At PepsiCo, Bowen drove retail merchandising, data analytics and shopper marketing efforts, which are critical skills for Hill Street’s business growth across the globe.
“As an entrepreneur, I’m thrilled to have joined Hill Street and am excited to help create and grow value for its brands and businesses. I love the beverage category and am a big believer in the bright future of both the alcohol-free wine category and the dynamic cannabis-infused beverages sector,” said Bowen Hou, Director of Beverage Strategy and Development.
With Bowen’s arrival, it also allows for further alignment of the commercial team with Reuban Nadesan, VP of Corporate Strategy and Development, to focus on the expansion of Hill Avenue’s global DehydraTECH™ business. Reuban was deeply involved in the transaction to acquire the global usage rights to DehydraTECH™ from the Lexaria group of companies. Reuban has also been involved in the launch or expansion of all partner licensing relationships to commercialize DehydraTECH™. His dedicated focus on this business line is designed to accelerate growth and commercialization of this important asset.
The Company also announces that June Nicholson has resigned as Chief Operating Officer of the Company to pursue other opportunities.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of Cannabis ingredients.
Hill Street Beverages brands include Hill Street Craft Brewed Lager, and Vin(Zero), and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.
For more information on our business activities or to check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home go to www.hillstreetbeverages.com.
For more information:
Lori Senecal, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., lori@hillstreetbevco.com
Craig Binkley, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., craig@hillstreetbevco.com
FORWARD-LOOKING STATEMENTS
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Company completes production fulfillment of first orders to new international distributor
Toronto, Ontario–(Newsfile Corp. – August 16, 2021) – Hill Street Beverage Company Inc. (TSXV: BEER) (the “Company“) is pleased to announce a new distribution agreement in Australia and production fulfillment of the first orders of Vin(Zero) products to this new expansion market. These orders represent Hill Street’s first alcohol-free wine sales beyond North America and are the result of rigorous analysis of its alcohol-free business with a view to accelerating scale, profitability, and brand equity in this global growth category.
Exponential demand for alcohol-free wine is growing worldwide, driven in-part by consumers aged 18-24 years, dubbed ‘Generation Sensible’. The desire to reduce alcohol intake among a growing number of these cleaner drinking, more health-conscious consumers is driving demand for better quality non-alcoholic options. This represents a tremendous opportunity for Hill Street, whose corporate mission is to bring together craft quality and science to create better tasting, better for you experiences across its portfolio.
“At Hill Street we are focused on markets that exhibit not only strong alcohol-free growth but also those that have shown a propensity for the purchase of premium quality, craft offerings,” said June Nicholson, COO of Hill Street. “For example, alcohol-free wine is Australia’s fastest growing drinks category, despite its long tradition and well-established alcohol wine consumption habits. Increasingly, Australian consumers are demanding more premium alcohol-free options; they want to enjoy a glass of well-crafted wine with the great taste they expect but without the alcohol. They appreciate an authentic experience and aroma, yet with less sugar and fewer calories than traditional wine as they shift to mindful consumption.”
This demand for Hill Street export to other countries is driven by the quality and reputation of the beverages, supported by the prime position that Vin(Zero) holds at Canadian retailers country wide.
“Hill Street’s Alcohol-free wine is a growth business that generates important revenue that helps fuel other strategic priorities such as our new Hill Avenue Cannabis business lines,” said Craig Binkley, Co-CEO of Hill Street. “The acquisition of the global usage rights for patented DehydraTECHTM from the Lexaria group of companies, aimed at growing our cannabis business worldwide, has also mobilized the Company to expand our geographic footprint across all of our business lines including the new global export strategy for alcohol-free beverages.”
Hill Street’s Vin(Zero) branded wines are making their way into consumers’ hands via this new distribution agreement, including our Chardonnay, Cabernet Sauvignon, Brut Blanc and Shiraz (Rosé). Australians can expect to see these brands as recurring favourites at leading retailers like Dan Murphy’s, Australia’s leading beverage distributor.
Lexaria Update
The Company also announces that further to its press release dated December 10, 2020, in connection with its first deferred payment obligation of $500,000 owing under the asset purchase agreement with the Lexaria group of companies, wherein it acquired certain assets of Lexaria Bioscience Corp., the Company has issued 7,575,758, common shares to Lexaria CanPharm ULC.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of Cannabis ingredients.
Hill Street Beverages brands include Hill Street Craft Brewed Lager, and Vin(Zero), and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.
For more information on our business activities or to check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home go to www.hillstreetbeverages.com.
For more information:
Lori Senecal, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., lori@hillstreetbevco.com
Craig Binkley, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., craig@hillstreetbevco.com
FORWARD-LOOKING STATEMENTS
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Dehydr8 Michigan, LLC becomes Hill Street’s first US licensee to sell DehydraTECH(TM) with B2B market scale
Toronto, Ontario–(Newsfile Corp. – July 27, 2021) – Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”) is pleased to announce a new partnership with DeHydr8 MI, LLC – a Michigan-based team of cannabis industry professionals. DeHydr8 will bring Hill Street’s usage rights to cutting-edge DehydraTECH™ technology for THC products to the Michigan cannabis industry for use in the manufacturing of edibles, infused beverages, topicals, tinctures, sublingual products, and concentrates. These usage rights were acquired from Lexaria CanPharm ULC, a subsidiary of Lexaria Bioscience Corp. in 2020.
Michigan ranks among the top five states in the US for cannabis sales and growth is soaring. Now in its second year of adult use and 11th year of medical use, Michigan is on track to surpass $1.5 billion in annual cannabis sales in 2021.
“Michigan is the ideal market for this partnership, which dramatically accelerates our commercialization of the DehydraTECH™ technology”, said Craig Binkley, Co-CEO of Hill Street. “Following our transactions with the Lexaria group of companies for global usage rights to DehydraTECH™ intellectual property for incorporation into adult use CBD and THC products, we have already recorded our first revenues from licensees operating in California, Colorado, Illinois, Massachusetts and Oklahoma. Add Michigan, and we are present in some of the largest cannabis markets in the world”.
“With this new partnership, Hill Street is also making our important B2B strategy a reality for the Company,” continued Craig Binkley. “As we continue our expansion in the US, our approach will be to assess each legal state to determine the overall market potential based on scale, regulatory environment, existing relationships and competitive situation.”
Hill Street chose to partner with DeHydr8 because of their deep cannabis market knowledge and strong relationships in the state, as well as their cultural fit with the Company.
DeHydr8 was founded by Todd Webber, a serial entrepreneur from Birmingham, Michigan. The Dehydr8 Team is comprised of top legal counsel in the cannabis industry combined with premier marketing and sales professionals. DeHydr8 has existing relationships with leading medical use and adult use extractors and manufacturers as well as recognized experts in wellness provisioning and R&D.
“This move furthers our growth agenda to expand the Company’s commercial opportunities in three key areas: beyond Canada into global markets, beyond beverages into cannabis technology and beyond B2C into B2B scale opportunities,” said Lori Senecal, Co-CEO of Hill Street. “We’re thrilled to be working with DeHydr8 as their expertise helps us deliver on all three of these growth strategies. In addition to the strategic fit, we felt a powerful connection with this dynamic group and a shared passion to team-up and win.”
“Working with Hill Street and their executive team to move the market and lead the industry with internationally recognized IP is an amazing opportunity.” said Todd Webber, founder of Dehydr8. “Culture is a key ingredient to success and the culture we have created between these two executive teams, from the very first meeting, has been outstanding. We had a level of trust and respect right from the first conversation that has allowed us to achieve great strides in short order. We couldn’t be more excited to get started”.
Patented DehydraTECH™ technology improves the way active pharmaceutical ingredients (APIs) enter the bloodstream, delivering a host of competitive advantages and providing better, more predictable experiences for consumers. Findings from extensive scientific studies performed by Lexaria Bioscience Corp. include:
Increased bioavailability up to 5-10x – to equate to blood absorption by inhalational delivery
Increased brain permeation up to 19x – as demonstrated in animal studies
Avoids first-pass liver metabolism – mitigating unwanted side effects
Reduced time of onset – effects are felt within 15-20 min vs. 60-120 min
Masks unwanted tastes – eliminating the need for sugar-filled edibles
“We’re delighted to see that our partnership with Hill Street is delivering the intended vision,” said Chris Bunka, CEO of Lexaria Bioscience Corp. “As Lexaria aggressively drives ground-breaking scientific advancements and extensive R&D, Hill Street is rapidly advancing commercialization of the DehydraTECHTM platform. This new relationship with DeHydr8 provides direct benefits to all by driving scale, royalties and commercial gain”.
The initial term of the licensing agreement with DeHydr8 is for a period of two years and the territory is currently limited to the state of Michigan.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of Cannabis ingredients.
Hill Street Beverages brands include Hill Street Craft Brewed Lager, and Vin(Zero), and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.
Check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home at www.hillstreetbeverages.com, and cannabis related business activities and products at www.hillavenuecannabis.com.
For more information:
Lori Senecal, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., lori@hillstreetbevco.com
Craig Binkley, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., craig@hillstreetbevco.com
About DeHydr8
DeHydr8 is focused on delivering the premier fast-acting and most bioavailable technology, DehydraTECH™, to our manufacturer partners in the US Market for application in Cannabis 2.0 products.
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
First shipment of cannabis infused (V)ia Regal(TM) Pink Grape Sparkler sells out in a matter of days
Toronto, Ontario–(Newsfile Corp. – June 2, 2021) – Hill Street Beverage Company Inc. (TSXV: BEER) (the “Company“) is pleased to announce that the initial shipment of its first cannabis infused beverage (V)ia RegalTM Pink Grape Sparkler sold-out within a matter of days after launching at the Ontario Cannabis Store (OCS) and select retailers. A new shipment is expected to be restocked and available in the coming days.
“We have received a steady stream of extremely positive messages from customers and retailers that were fortunate to be the first to experience our new (V)ia RegalTM Pink Grape Sparkler,” said Reuban Nadesan, Head of Strategy & Corporate Development. “As (V)ia RegalTM Pink Grape Sparkler is Canada’s first grape-based cannabis infused beverage, customers and budtenders have pointed to its unique grape-based bubbly flavour as a refreshing addition to the beverage shelf. Everyone at Hill Street is delighted that it is off to such a fast start.”
(V)ia RegalTM Pink Grape Sparkler is an early entrant to the “craft beverage shelf” at the Ontario Cannabis Store. Hand-crafted, with clean, simple ingredients, the new bubbly beverage has already become in-demand at the OCS and among select retailers.
(V)ia Regal Pink Grape Sparkler is offered in a 355ml sleek can containing 10mg of THC and only 90 calories. Via Regal was developed and is manufactured exclusively through our partnership with Molecule Inc. The new beverage is available through the Ontario Cannabis Store and select retailers. Serve it chilled for delicious, refreshing summer enjoyment.
Extension of Expiring Warrants
The Company also announces that it has made an application to the TSX Venture Exchange to extend the expiry date of 4,241,654 warrants, which were issued in June 2019. Each warrant entitles the holder to purchase one common share in the capital of the Company at an exercise price of $0.40 per share. The Warrants are set to expire on June 7, 2021. The Company has applied to extend the expiry date until December 31, 2021. The proposed extension is subject to the approval of the TSX Venture Exchange.
About Hill Street Beverage Company Inc. (TSXV: BEER)
Hill Street Beverage Company is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience Corp.’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of Cannabis ingredients.
Hill Street Beverages brands include Hill Street Craft Brewed Lager, and Vin(Zero), and have won numerous medals and accolades around the world. Hill Avenue Cannabis Brands include (V)ia Regal Pink and White Grape Sparklers.
Check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home at www.hillstreetbeverages.com, and cannabis related business activities and products at www.hillavenuecannabis.com
For more information:
Lori Senecal, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., lori@hillstreetbevco.com
Craig Binkley, Interim Co-Chief Executive Officer Hill Street Beverage Company Inc., craig@hillstreetbevco.com
FORWARD-LOOKING STATEMENTS
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
