Helix TCS Moves to the OTCQB Marketplace
Helix TCS has continued to position itself as a key link in the cannabis ecosystem, as it grows existing business lines and rolls out new ones. Its existing revenue from security and transportation services continues to grow and its long-term assets in wholesale, cash transport, and data are set to deploy. After reporting strong quarterly growth, the company recently uplisted to the OTCQB from the OTC Pink marketplace in a sign that it’s focused on growing shareholder value in a way that’s both transparent and long-term focused.
Moving to the OTCQB
Helix TCS moved from the OTC Pink to the OTCQB marketplace last month after completing its OTCQB certification. With stricter listing standards, many investors prefer to invest in over-the-counter companies only if they are listed on the OTCQB or higher levels. These standards help ensure greater transparency when it comes to financial reporting and improved governance when it comes to reporting and other corporate matters.
The OTCQB has much stricter requirements, including:
- Audited financial statements by a PCAOB auditor;
- Minimum bid price of $0.01;
- Minimum reporting standards; and
- Verified company profile.
In the future, the company may choose to further uplist. Many cannabis companies are limited in terms of the ability to uplist to the NASDAQ given the federal regulations surrounding the cannabis plant, but the OTCQB and OTCQX have become attractive designations for investors looking for transparency and high standards when it comes to governance.
Strong Financial Results
Helix TCS differs from many over-the-counter companies with its strong financial performance. During the third quarter of 2017, the company reported revenue that grew 85% to $1,129,746 and gross margins that improved 92% to $315,715. The majority of the company’s revenue growth came from an increase in the number of clients that it serves, and additional revenue from its Security Grade acquisition.
“With existing product lines that are well aligned with this ongoing strategy, the purchase of Security Grade will boost our capacity to scale our offerings as we continue to expand into new markets, and benefit our existing client base by increasing the breadth of the integrated capabilities we’re able to offer,” said Helix TCS CEO Zachary L. Venegas in a press release announcing the acquisition in June of 2017.
The company has maintained a dual focus on building near-term revenue through security services and long-term value through competitive intelligence and data solutions. With an expanding customer base, the company is building valuable relationships across the value chain before expanding into a variety of targeted segments. Its competitive intelligence business has also been silently growing with CannaBase and various partnerships.
Helix TCS Inc. (OTCQB: HLIX) has reached a key milestone with its uplisting to the OTCQB from the OTC Pink marketplace. With a strong foundation for growth in the security and transportation business, the company continues to build up its presence in the data and competitive intelligence side of the business over time.
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