Colorado-based Helix TCS, a publicly traded ancillary marijuana company, said it signed a merger agreement with BioTrackTHC, a Florida-based seed-to-sale cannabis tracking software company.
Terms of the deal weren’t announced.
But the marriage combines Helix – which has its hands in security services, banking-related consulting and logistical support – with one of the cannabis industry’s leading seed-to-sales companies.
The deal also could foreshadow additional mergers and acquisitions in the maturing U.S. cannabis industry – something that already is happening north of the border in Canada.
“As the industry evolves and becomes bigger, there’s going to be a need to team up and come together.”
Helix is no stranger to acquisitions, having purchased Colorado marijuana wholesale site Cannabase in 2016.
According to a news release, the newly merged company will trade on the over-the-counter markets under the stock symbol HLIX.
Both firms will continue to operate independently.
Patrick Vo will continue as CEO of BioTrackTHC, and Zachary Venegas will remain Helix’s CEO.
Venegas also will become executive chairman of the board.
Earlier Helix deals
Helix positioned itself for the acquisition with a series of moves:
Because the merger involves a seed-to-sale company, Karnes expects the ensuring cost synergies to trickle down to the bottom line of cannabis license holders.
“That hopefully is the benefit for the industry,” he said.
BioTrackTHC is one of the industry’s leading seed-to-sale companies, along with MJ Freeway and Franwell’s Metrc.
BioTrackTHC has won contracts from nine state governments for its seed-to-sale traceability software.
The company also provides commercial inventory management and point-of-sale software to more than 2,200 cannabis businesses across 29 states and five countries.
Bart Schaneman can be reached at [email protected]
