3 Sixty Risk Solutions’ (SAFE.C) wholly-owned subsidiary, 3 Sixty Secure, entered into a strategic alliance with the Cannabis Mercantile Exchange (Cannamerx), an international online auction platform for wholesale cannabis, cannabis products and genetics.
According to the company’s website, Cannamerx’s platform grew its user base to 40 Canadian cannabis companies since its launch in November 2017.
To date, Cannamerx’s sales platform has handled CAD$2 million in trades and the exchange’s future supply auctions have committed 25 tonnes of yet-to-be-planted legal cannabis to buyers the world over.
The company differentiates itself through cost as it doesn’t charge seat or listing fees, and it doesn’t charge buyers. Sellers meanwhile, pay a fee as low as 0.75% of total weekly trades.
Cannamerx is so confident in the integrity of its services, it offers a money-back guarantee to sellers should buyers refuse delivery for any reason.
As a result of the agreement, Cannamerx will be advertising 3 Sixty’s security solutions to a long list of clients for the secure transport of cannabis sold and delivered
Cannamerx’s word-of-mouth could become a powerful revenue generator for 3 Sixty Secure, according to founder and CEO, Thomas Gerstenecker:
“We look forward to providing our world-class offering to all Cannamerx clients. As Cannamerx grows, we will be well positioned to serve its B2B customers that require a leading seed-to-sale security provider to safely transport cannabis products while remaining compliant across multiple jurisdictions.”
3 Sixty currently services more than 500 customers and more than 60 licensed cannabis producers, transporting approximately $250 million of product every month.
The company, with over 275 employees and a 60-plus vehicle fleet, is a go-to security service provider for industry giants such as Canopy Growth (WEED.T).
As well, 3 Sixty has an combined security footprint of approximately 30 million square feet of patrolled area according to company execs.
3 Sixty has a lot to offer Cannamerx too, as Dietwald Claus, Cannamerx CEO explained:
“We have been very impressed with the growth and performance of 3 Sixty’s world-class security services, as well as its top-tier customer base which includes some of Canada’s leading LPs. We are very proud to work with 3 Sixty to provide secure transport solutions to Cannamerx clients for products traded via the Cannamerx system, as well as promoting 3 Sixty’s other services, from security consulting to site protection.”
This agreement doesn’t involve payments of any kind between 3 Sixty and Cannamerx and neither company has a financial stake in the other, following Cannamerx’s transparency mandate.
CIBC (CM.Z) estimates legal cannabis will generate $6.5 billion by 2020, with Canadians using 800,000 kilograms (1.7 million pounds) a year and provincial governments raking in $3 billion in earned profits and taxes.
Compliance issues continue to plague the legal cannabis sector, according to Adherence Compliance, an American firm which advises companies on regulatory adherence. Approximately 76% of all operators fail on inventory, 72% face-plant on security and surveillance and 53% fumble on transport and storage.
3 Sixty was in the news recently when the company announced another strategic partnership at the beginning of the month with Pineapple Express Delivery to provide security services for the “same day, last mile” cannabis courier.
Competition is high within the marijuana market niche of compliance and security, but if 3 Sixty can continue creating accretive relationships with well-known clients like Cannamerx, Pineapple Express Delivery and, of course, Canopy Growth, it could evolve into a major industry-security watchdog.
Shares bumped $0.02 on small volume to $0.59 per share by afternoon trading.
Currently, 3 Sixty has 143,913,059 issued and outstanding shares with a market cap of $84.9 million.
–Gaalen Engen
Full disclosure: 3 Sixty Risk Solutions is an Equity.Guru marketing client.