3 Sixty Secure, a subsidiary of 3 Sixty Risk Solutions (SAFE.C), inked an agreement on March 8 to provide security guard services to the Liquor Control Board of Ontario (LCBO).
The two year contract comes with three optional one-year extensions, and expands 3 Sixty’s security footprint to include all of Ontario, except for the Greater Toronto Area.
This will bring the company roughly $5 million dollars per year, according to Thomas Gerstenecker, 3 Sixty’s CEO.
This engagement is the end result of a LCBO proposal request that went out to the private sector seeking a security solution to a string of burglaries and incidents of theft involving LCBO staff.
3 Sixty’s plans for the LCBO stores include a 24-hour security presence in larger at-risk stores, and incident alarms for smaller stores without a guard present during operating hours.
This expansion will also require 3 Sixty to hire and train between 50 to 100 new people starting April 1, 2019.
“Part of the build up to bringing these people on is going through a pretty robust onboarding process and training package that gives them the necessary tools to perform the job that they’ve been tasked with. That goes into loss prevention techniques, but also response components, and protection of not only products, but staff and patrons of the store,” Gerstenecker said.
The future is secure
3 Sixty arrived on the scene in early 2019 and has secured partnerships with a number big players in the cannabis space, including Canopy Growth (WEED.T), Aphria (APH.T) and Tilray (TLRY.Q).
The company recently extended their partnership portfolio to include Beleave (BE.C), Pineapple Express Delivery and a multiyear agreement providing transport services for the Ontario Cannabis Store.
Here is 3 Sixty’s director of strategic engagement, Barry Davis, discussing his company’s trajectory:
The company’s primary objective in 2019 is to expand their position in Canada from coast to coast through both organic growth and accretive acquisitions.
The company will then look south to the U.S. security and cannabis markets where they will aim to make their mark offering their seed to sale methodology to American cannabis companies.
The next 12 months will certainly be active for 3 Sixty.
“You will certainly not see us slowing down from a scalability point of view. While we approach everything in a measured way, we will continue to scale significantly for the better part of this year and into next year. We expect to exceed expectations on all fronts,” Gerstenecker said.
Their projections for 2020 include pushing beyond the U.S. into Mexico and Europe, which should give them a substantial boost towards becoming a global power in the security markets.
Shares rose $0.02 to CAD$0.62 by market close.
3 Sixty Risk Solutions has 143,913,059 issued and outstanding shares with a market cap of $89.2 million.
–Joseph Morton
Full disclosure: 3 Sixty Risk Solutions is an Equity.Guru marketing client.