What Helix TCS does:
The Denver-based company has a suite of technology services and platforms that enables cannabis business owners and operators to better manage and mitigate risk.
The technology suite is a comprehensive seed-to-sale platform which includes a dynamic wholesale marketplace, compliance tools, and advanced product tracking capabilities.
It’s security offerings provide comprehensive digital and physical protection for cannabis assets, employees, customers and business owners.
All the technology and service offerings are designed to support business owners in staying compliant at every stage of their business.
Helix TCS' products reach over 2,000 customer locations in 37 states and 6 countries and it has processed over $18 billion in cannabis sales.
Its software subsidiary, BioTrackTHC provides government cannabis tracking technology to 10 US states and territories.
Aside from the US, Helix TCS has also established customer networks in Canada, Colombia, Jamaica, Australia, New Zealand, and the UK.
How is it doing:
In the middle of August, Helix TSC reported strong second quarter 2019 numbers which saw total revenue jump to $3.9 million, an increase of 108% compared to the same quarter a year earlier.
The group’s gross profit for the second quarter was $1.9 million, while cash flows from operations improved in the quarter by $462,000, or 39%, compared to the first quarter.
Through the first half of 2019, the company added nearly 500 new licensed customers via BioTrackTHC. Software sales at BioTrackTHC grew by 44% to $2.37 million during the second quarter.
Other highlights in the second quarter included the acquisition of Tan's International Security, a California-based, veteran-owned security business licensed to provide physical security guards and perform digital security system installs in the state of California, and the expansion of its international footprint to the United Kingdom.
In the first quarter, Helix TCS had acquired Amercanex International Exchange, one of the first and most influential cannabis electronic trading platforms in the legal cannabis industry.
The February purchase provided the company 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.
On the boardroom front, in the wake of the 2Q results, Helix TSC announced the addition of former New York Stock Exchange veteran Garvis Toler III to the company’s leadership team.
Toler, the former global head of capital markets at the NYSE, was named president of data services at Helix TCS, where he will also support the company’s activities linked to the capital markets.
In February, the company appointed the former President of Mexico, Vicente Fox Quesada to its board of directors, to support the firm as a strategic advisor as it continues its growth into the international cannabis market.
Fox was the 55th President of Mexico and prior to that, he was the CEO of Coca Cola's Latin American operations.
At the start of August. Helix TCS stock was added to the LD Micro Index, which is designed to give the most accurate representation of the intraday activity of microcap stocks in North America.
Twice a year, LD Micro Index evaluates more than 10,000 micro-cap companies in search of top names to be added to the index. On August 1, 2019, Helix TCS was selected among several top cannabis names.
In July, CannabizMedia named BiotrackTHC as the leading provider of cannabis point of sale software by market share in the US for the 2nd time in a row based on a 24% market share.
According to the report, market competition in retail point-of-sale increased markedly, with 43 providers in 2018 jumping to 68 providers in 2019.
Despite this, the company noted, BioTrack added 110 new customer locations, which was a 27% increase, the highest percentage growth out of the top 3 providers, demonstrating that BioTrack’s cannabis software sales are outpacing simple market growth.
What the boss says:
In a statement accompanying the group’s second quarter results, Zachary Venegas, Helix TCS’s CEO said: “Our powerful suite of critical infrastructure services enables us to maintain a dominant presence in the expanding market as businesses and governments alike require more of our service offerings.”
“Our unique ability to add integrated services to our existing and new clients has proven highly effective through the first half of 2019 and we look forward to capitalizing on this strategy as we roll out additional mission-critical services to our platform.”