On February 4, 2019 3 Sixty Secure (SAFE.C) announced that it entered into a strategic partnership with Pineapple Express Delivery to provide security services supporting “same day, last mile” cannabis delivery services to Canadian private residences and retailers.
“3 Sixty Risk Solutions is one of Canada’s leading security service providers to the cannabis sector, transporting approximately $250 million of product every month” wrote Equity Guru’s Chris Parry a month ago, “That’s a lot of product, and it’s coming from a lot of different places.”
3Sixty provides transport security services to more than 500 customers and more than 60 licensed cannabis producers, including LPs owned by Canopy Growth.
Worth noting, when the deal to take this company public was announced in November, they had 40 LPs on the books. Now, just a few months later, it’s 60 LPs.
3Sixty has a staff of over 250 employees and employs a fleet of over 60 vehicles, which management believes provides a combined security footprint to approximately 30 million square feet of patrolled area.
3Sixty is not cannabis-reliant. While 60 LPs is a big load of clients, the company also has clients in mining, oil and gas, non-core policing, risk assessment, and secure infrastructure consulting, and a lot of those clients are international.
Pineapple Express is Canada’s leading same-day delivery service for the medical and recreational cannabis market servicing both the Business-to-business and Business-to-customer markets.
On January 7, 2019 Namaste (N.V) upped its equity stake in Pineapple Express from 15% to 49%.
The purchase agreement cost Namaste $3.06 million, and the plan was for Namaste’s CEO Sean Dollinger to join the Pineapple Express’ board of directors.
That decision could be re-assessed after the Namaste Board announced today that, “It is in the best interest of Namaste that Sean Dollinger be terminated from his role as CEO for cause and removed as Director of the Company. Namaste is commencing legal action against Sean Dollinger for damages and disgorgement.
According to the corporate literature, Pineapple Express offers 60-minute delivery services in multiple industries across Canada with 40,000 deliveries per month.
With provincial offices set up across Canada, Pineapple Express has security and delivery protocols to facilitate same-day delivery of medical and recreational cannabis across the country.
This agreement proposes that 3 Sixty will provide secure transport services for “high value, large volume cannabis” and “short-term cannabis storage services” across the country.”
Reading between the lines, Pineapple Express will not be calling on 3 Sixty to ride shot-gun on a delivery of 3 pre-rolls to a college dorm.
Its services will be required when a licenced grower is sending 5 kilograms of premium weed to an oil-extraction facility, or a distribution hub needs to store an entire harvest – prior to delivery to retailers.
“The partnership represents another channel for 3 Sixty to add new, large-scale cannabis customers,” stated Thomas Gerstenecker, CEO and Founder of 3 Sixty. “Our partnership with Pineapple Express will benefit both companies as the cannabis sector is experiencing significant growth.”
The partnership leverages the unique strengths of 3 Sixty – an expert in cannabis seed-to-sale security – with Pineapple Express, which has more than 10 years of on-demand delivery and real time tracking.
3 Sixty’s operations span the entire seed-to-sale supply chain:
- Security Consulting: Site assessments, licensing advisory, and security design and buildout.
- Off-site monitoring: 24/7 professional CCTV monitoring of facilities.
- On-Site Security: Guard services and security systems, including remote monitoring, CCTV, and other services.
- Secure Transport: Unarmored and armored vehicles, air transport, and related services with real-time climate control.
- Corporate Security: International travel security, hiring security, investigations and training.
- Retail: Site assessments, store design consulting, licensing advisory, systems integration (including CCTV installation and monitoring facilities), and compliance audits for retail locations.
Plant health throughout the transport process is a key competency. Vehicles are disinfected following each delivery, ensuring containment of agricultural diseases and parasites between locations.
“3 Sixty Secure is a leader in large volume and high value delivery services,” stated Randy Rolph, CEO of Pineapple Express, “This partnership allows each company to build on our areas of strength – providing the only fully comprehensive delivery service to every single area in the cannabis industry.”
Full Disclosure: 3 Sixty is an Equity Guru marketing client, and we own the stock.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.