3 Sixty Secure Acquires INKAS® Security Services Ltd. Creating One of Canada’s Largest Secure Cannabis Transport Companies
3 Sixty Risk Solutions Ltd. (“3 Sixty” or the “Company”) (CSE: SAFE) (OTCQB: SAYFF) (FSE: 62P2) a leader in the risk management and security services sector of the burgeoning cannabis industry is pleased to announce its acquisition of substantially all of the assets and business of INKAS® Security Services Ltd. (“ISSL”) valued at approximately $13.75 million, payable in cash, shares, vendor take-back note and earn-out as described below in the Transaction Summary (the “Transaction”), and pursuant to the terms of an asset purchase agreement (the “Agreement”).
Today’s announcement launches the Company into a leading role in the cannabis secure transport and cash management service sector nationwide.
Highlights of the Transaction
The Transaction brings together two of the leading Security companies in Canada with fully-aligned strategic visions and a strong network of infrastructure. The combined company becomes one of the largest cash management security firms nationally, creating a powerful platform for accelerated growth in Canada and the USA.
- Becomes one of the largest cash management security firm nationally: 3 Sixty has rapidly gained market share within 3 months of public listing with national capabilities to service additional industries outside of cannabis and cash in transit.
- Extensive distribution network and infrastructure across Canada: 3 Sixty has become a nationwide cannabis secure transport leader to deliver coast to coast service to all our customers. With expanded infrastructure 3 Sixty also brings an additional 16 cannabis operators into our client base. This robust distribution network exceeds the needs of our largest customers, paving the way for increased revenue generating opportunities.
- Enhanced revenue diversification: ISSL brings a diversified revenue mix of non-cannabis customers, some of which are leading financial institutions in Canada. This Transaction will also help to service cannabis dispensaries.
- Route density and enhanced customer responsiveness: 3 Sixty’s workforce and vehicle fleet immediately increases providing enhanced customer responsiveness, cost-saving enhancements, and improved customer penetration across the country with the support of facilities in Alberta, Quebec and Ontario.
- Cost Synergies: As a result of the Transaction, 3 Sixty will see cost synergies from combined auto and cargo insurance, access to secure storage facilities for cannabis storage, additional access to skilled and licensed transport drivers, enable less than a load (LTL) services and secure storage facilities strategically located near major airport hubs. 3 Sixty will also have direct access to armouring additional vehicles through the former parent company of ISSL.
- Purchase price earn-out subject to strong revenue trajectory: $1.75 million of the purchase price is payable only upon ISSL’s business meeting revenue targets of $15 million and $20 million over the first year and second year, respectively, following closing.
Thomas Gerstenecker, CEO of 3 Sixty Secure states, “In very short order, and through our vision to directly focus on the cannabis sector, we have experienced rapid growth from a small regional provider to a nationwide presence with a significant vehicle fleet and secure facilities. With this acquisition we become one of the largest cannabis sector secure transportation outfits, and one of the largest cash management operators in Canada. This speaks volumes to the growth of the cannabis industry and the demand for focused and dedicated services. We are excited and pleased to welcome ISSL to continue the push for an even greater future.”
ISSL was identified early on as an organization offering complementary philosophies, business goals and resources, and a mix of clients including a cannabis sector customer list that had grown to an impressive market share of 16 operators. Key highlights of ISSL’s services that will broaden 3 Sixty’s services include:
- secure cash transportation and processing,
- ATM processing;
- armed security and vault storage service, and
- integrated technology innovation alongside a robust industrial truck and safe manufacturing capability.
ISSL Chairwoman Margarita Simkin notes, “This is truly a win-win for our company, the Canadian security sector, our clients, partners and stakeholders alike. Today’s announcement means our team will continue to build momentum and continue to provide exemplary service across the nation and hopefully beyond. We are very pleased to share this vision with the team at 3 Sixty and anticipate truly exceptional results.”
“In conclusion,” notes 3 Sixty’s Gerstenecker, “today’s news propels us to where we can meet the challenges and needs of any national cannabis operator regardless of size and operational complexity. Our strategic plan is on-track and firmly focused on delivering results for our customers, partners, stakeholders and employees while building shareholder value as a trusted leader in this exciting industry.”
The terms of the Agreement provide for a purchase of substantially all of ISSL’s assets for an aggregate purchase price of $13.75 million (the “Purchase Price”), subject to adjustment, including a $1.75 million earn-out payable in common shares of the Company upon the purchased business meeting revenue targets of $15 million and $20 million in the first year and second year, respectively, following closing. The share consideration payable to ISSL, representing $5.5 million of the Purchase Price, is subject to a holdback pending the Company obtaining certain customer consents to the Transaction and will be satisfied, upon receipt of such consents, by issuance of up to 9,166,666 common shares in the capital of the Company. $2 million of the Purchase Price was satisfied by the issuance of a vendor take-back note to be repaid on a quarterly basis over a two year period following closing. The balance of the Purchase Price, being $4.5 million, was paid in cash.
Harvest One Selects 3 Sixty Secure Corp. to Provide Secure Transport, Secure Cannabis Storage and Retail Delivery Services
3 Sixty Risk Solutions Ltd. (OTC: PTVYF) (CSE: SAFE) (FSE: 62P2) is pleased to announce that the Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., has been selected by Harvest One Cannabis Inc. (“Harvest One“) (TSX-V: HVT) (OTCQX: HRVOF) to provide a portfolio of security services which include secure transport, secure cannabis storage and retail deliveries. Harvest One has a global portfolio of brands including United Greeneries, Satipharm, Dream Water, and Burb that serves the adult recreational and medical cannabis markets from cultivation to retail distribution. The global footprint of Harvest One, with a presence in five countries, aligns with 3 Sixty’s strategic goals of realizing significant organic growth and accelerating growth using M&A to expand operations within Canada, the United States of America and internationally.
“Harvest One is a tremendous example of a company serving the full spectrum of customer needs from cultivation to production to retail distribution of top-quality products,” said Thomas Gerstenecker, CEO and Founder of 3 Sixty. “It is led by expert growers, brilliant engineers and creative entrepreneurs and it has announced supply agreements in Ontario, British Columbia, Manitoba and Saskatchewan. We look forward to supporting Harvest One as it expands its cultivation footprint and retail distribution network in Canada and internationally.”
“We consider 3 Sixty to be a leading seed-to-sale security provider serving the cannabis industry,” said Grant Froese, CEO of Harvest One. “We have consistently experienced their commitment to professionalism and deep expertise in security. As the legal cannabis industry grows in Canada, and internationally, we feel confident that the world-class security services provided by 3 Sixty will ensure the safety of our products and the timely distribution to our retail partners across Canada.”
3 Sixty Secure Corp. to Provide Secure Transport and Guarding Services to Up Cannabis
3 Sixty Risk Solutions Ltd. (OTC: PTVYF) (CSE: SAFE) (FSE: 62P2) is pleased to announce that the Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., is providing secure transport and guarding services to Up Cannabis Inc. (“Up Cannabis“), a wholly-owned subsidiary of Newstrike Brands Ltd. (TSX-V:HIP) (“Newstrike“). The significant growth potential of Up Cannabis, with provincial distribution agreements in seven provinces and expansion underway to increase annual production capacity to over 40,000 kilograms, is well aligned with 3 Sixty’s strategic priorities which include significant organic growth by adding new customers and the expansion of security services offered to existing customers within the recently legalized cannabis industry.
“We have been extremely impressed with the cadence and quality of agreements that Up Cannabis has announced,” said Thomas Gerstenecker, CEO and Founder of 3 Sixty. “The company is building an iconic brand that resonates with Canadian consumers and it continues to build a national distribution network for Up Cannabis products. We are thrilled to have been selected by Up Cannabis to provide guarding services and secure transport for a company with clear growth ambitions, tremendous production capacity, and supply agreements in place that can support its strategic intentions.”
“Following a thorough assessment of security providers, we are satisfied that the world-class security services provided by Thomas and his expert team at 3 Sixty are the best choice to ensure the safety of our facilities and products,” said Jay Wilgar, CEO of both Newstrike and Up Cannabis. “We’re also pleased to know that we’re in good company, as 3 Sixty counts both the Ontario Cannabis Store and a number of other Licensed Producers as clients, apart from having recently acquired David Hyde & Associates, a recognized leader in cannabis security who helped us build our flagship facility in Niagara.
“As we continue building a best-in-class distribution network for Up Cannabis products from coast to coast, the need for safety and reliability is critical. Working with a company that has expertise in cannabis security ensures that our supply chain is protected, and that our employees and customers remain safe,” Wilgar added.
With agreements in place with seven provincial distributors, Up Cannabis operates within an elite group of Licensed Producers. Health Canada has issued licences to more than 100 entities under the Cannabis Act, and Up Cannabis is one of only seven with provincial agreements in at least seven provinces.
3 Sixty Secure Corp. Announces Security Guarding Contract with the Liquor Control Board of Ontario (LCBO)
3 Sixty Risk Solutions Ltd. ("3 Sixty" or the "Company") (CSE: SAFE) (OTC: PTVYF) (FSE: 62P2) is pleased to announce that the Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., has been selected to provide security guarding services to the Liquor Control Board of Ontario ("LCBO") for stores located in the Northern, Eastern and Western Regions. The initial term of the contract is two years with the option to renew annually for up to five years.
"We are extremely pleased to have been entrusted to provide security guarding services to one of Canada's most successful and respected retail operators," said Thomas Gerstenecker, CEO and Founder of 3 Sixty. "The selection of 3 Sixty by the LCBO is further validation that we provide world-class security services to top-tier customers throughout Canada. I am extremely proud of 3 Sixty's team of professionals that secured a meaningful, long term contract with our newest customer and we look forward to supporting the safety and security of the LCBO's retail presence."
3 Sixty Risk Solutions Ltd. (CSE: SAFE) (OTC: PTVYF) is pleased to announce that the Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., is providing secure transport services to James E. Wagner Cultivation Ltd. (“JWC”) (TSXV: JWCA) within the province of Ontario, Canada’s largest cannabis market. JWC recently announced several milestones which included its first shipment to the Canopy Growth Corporation’s CraftGrow store during Q4 2018 and commenced construction on its second, 345,000 sq. ft., facility, JWC 2, which represents a significant increase in cultivation capacity for JWC and meaningful growth potential for 3 Sixty.
“We are extremely proud to have been selected by JWC, which exemplifies the entrepreneurial spirit of Canada’s world-class cannabis businesses,” said Thomas Gerstenecker, CEO and Founder of 3Sixty. “JWC has rapidly scaled from a company operating a state-of-the-art 15,000 sq. ft. facility to commencing construction on a facility more than 20 times the size, which will increase its target production to roughly 30,000 kg per year. We congratulate JWC on its growth and 3 Sixty is pleased to be able to offer secure transport services that can scale with JWC’s impressive growth trajectory.”
“3 Sixty holds a leadership position in cannabis-focused security,” added Thomas Gerstenecker. “We provide world-class security services to our top-tier customer base and we continue to seek new services to offer to our existing customers. Additionally, a key tenet of our strategy growth plan is to leverage our expertise throughout Canada and to capitalize on the growing US and international markets organically and by identifying M&A opportunities using a disciplined approach. Growing customers, like JWC, are an important focus for the company and the expertise that we demonstrate every day will enable us to accelerate our growth with existing customers and in new geographies.”
Beleave Selects 3 Sixty Secure Corp. to Provide Secure Transport Services for Medical and Non-Medical Cannabis Products
3 Sixty Risk Solutions Ltd. (OTC: PTVYF) (CSE: SAFE) announced that the Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., is providing secure transport services to Beleave Inc. (“Beleave”) (CSE: BE) for its medical and non-medical cannabis products. Headquartered in Oakville, Ontario, Beleave cultivates high-quality cannabis flower and oil, for the medical and recreational markets where it can be found under the Seven Oaks brand. The company has developed a network of medical cannabis clinics in Ontario and Quebec and has been awarded a retail network in Saskatchewan and has been pre-qualified for retail in Manitoba. Additionally, through its international investments, Beleave has access to the Latin American and European markets.
“We are extremely pleased to be providing secure transport services to Beleave,” said Thomas Gerstenecker, CEO and Founder of 3 Sixty. “Beleave is vertically integrated in the medical and recreational cannabis markets within Canadawith significant growth plans. It is available in 100% of Canada’s medical cannabis markets and over 55% of the recreational market with plans to roll out recreational cannabis distribution to 99.57% of Canadians before the close of 2020. We are excited to partner with a progressive company like Beleave that has a vision for meeting the needs of Canadians but also has an eye on international expansion which aligns with our own strategic growth plans.”
“We continue to grow our customer base, which includes top-tier LP’s, distributors and retailers across Canada, by providing world-class security services to our top-tier customer base,” added Thomas Gerstenecker. “We intend to remain a leader in cannabis-focused security by meeting and exceeding our customer’s stringent demands within the highly regulated cannabis industry. We will continue to seek new services to offer to our existing customers as well as looking beyond our borders for geographic expansion opportunities that allow us to export our expertise across Canada, the US and internationally through organic means and by executing on disciplined M&A.”
3 Sixty Secure Corp. and Cannamerx, a B2B Cannabis Marketplace, Announce a Strategic Alliance
3 Sixty Secure Corp (CSE: SAFE) is pleased to announce that the Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., has entered a strategic alliance with the Cannabis Mercantile Exchange (“Cannamerx”), the fully automated international auction platform for wholesale cannabis, cannabis products, and genetics, to recommend certain products and services provided by each company to their respective customer base. There are more than 50 Canadian licensed cannabis companies that have joined Cannamerx, and since June 2018 it has helped facilitate the trade of more than 25 tonnes of cannabis and cannabis products through its automated auction platform as well as supply agreement auction process.
“We view the formation of a strategic alliance with Cannamerx as another opportunity for 3 Sixty to grow our domestic customer base and to gain access to the highly lucrative international market,” said Thomas Gerstenecker, CEO and Founder of 3Sixty. “In a short period, Cannamerx has added more than 50 Canadian cannabis companies to its platform and has taken on a well-regarded and important key role in the Canadian cannabis supply chain. 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.”
“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,” added Dietwald Claus, CEO of Cannamerx. “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. Partnering with the highest quality service providers is yet another way we can add value for the licensed cannabis companies that use our trading platform.”
Both companies emphasize that this strategic alliance does not involve any kind of payment between 3 Sixty and Cannamerx. Furthermore, Cannamerx does not have any financial stake in 3 Sixty, nor does 3 Sixty have any financial stake in Cannamerx. This is in line with Cannamerx’s standing policy to never accept or pay referral fees from or to any of its partners or to have any kind of financial stake in any cannabis related company or allow any cannabis related company to have any kind of financial stake in Cannamerx.
3 Sixty Secure Corp Announces Strategic Partnership with Pineapple Express Delivery Inc., a Leading Same-Day Cannabis Delivery Service Provider
3 Sixty Risk Solutions Ltd. (OTC: PTVYF) (CSE: SAFE) today announced that 3 Sixty Secure Corp, a wholly-owned subsidiary of 3Sixty, has entered into a strategic partnership with Pineapple Express Delivery Inc. (“Pineapple Express“) to provide security services that support same day, last mile cannabis delivery services to residences and retailers across Canada. As part of the agreement, 3 Sixty Secure Corp. will provide secure transport services for high value, large volume cannabis and short-term cannabis storage services across the country. Pineapple Express will, as part of the partnership, provide same-day and expedited delivery services to retail and residential end points. The partnership leverages the unique strengths of 3 Sixty, which brings extensive expertise in seed-to-sale security for the cannabis industry, and Pineapple Express, which has more than 10 years of on-demand delivery and real time tracking.
“This strategic partnership provides leading security services which better enable Pineapple Express to achieve its goal of delivering superior customer experiences every day,” said Thomas Gerstenecker, CEO and Founder of 3 Sixty. “The partnership represents another channel for 3 Sixty to add new, large-scale cannabis customers, that work with Pineapple Express, who can benefit from the world-class security services offered by our company and it is another step towards a safer supply chain for LPs, retailers and provincial governments provided by 3 Sixty. As a leader in cannabis security services in North America we continue to demonstrate our ability to meet the bespoke security needs of our customers while adhering to the stringent regulatory requirements of the cannabis industry. I expect that our partnership with Pineapple Express will benefit both companies as the cannabis sector is expected to experience significant growth in the foreseeable future. “
“We are extremely happy to be integrating with 3 Sixty to provide a truly unique and comprehensive customer experience and support package to our clients and partners,” said Randy Rolph, CEO of Pineapple Express. “This partnership simply makes sense. Pineapple Express is the leader in the same day delivery service for both recreational and medicinal cannabis and has been operating in Manitoba and Ontario. 3 Sixty Secure is a leader in large volume and high value delivery services. This partnership allows each company to build on our areas of strength and, together, provide the only fully comprehensive delivery service to every single area in the cannabis industry.”
3 Sixty Secure Corp. and MJardin Announce Protective Services and Secure Transport Agreement
3 Sixty Risk Solutions Ltd. (OTC: PTVYF) (CSE: SAFE) is pleased to announce that the Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., has entered into a multi-year, service agreement to provide guarding and secure transport services to an affiliate of MJardin Group, Inc. (“MJardin”) (CSE: MJAR) (OTCQX: MJARF), a global cannabis management platform with extensive experience in cultivation, processing, distribution and retail with more than 30 cultivation facilities under operation. The agreement provides a full suite of security services to MJardin facilities in Canada including security patrols and equipment monitoring as well as secure transport of cannabis products.
“We are extremely pleased to have been selected by MJardin to provide security services,” said Thomas Gerstenecker, CEO and Founder of 3Sixty. “We believe that this agreement provides more evidence that we are a leader in cannabis security in North America as we continue to attract high quality clients that trust us to secure their facilities and high value products. MJardin has one of the largest international footprints of any cannabis provider. We believe that its ambitions, to expand in the US, Canada, Europe, Africa and Latin America and to become a top three cannabis platform globally, align with our own strategic growth priorities.”
“Our goal is to remain a leader in cannabis-focused security by providing world-class security services to our top-tier customer base.” added Thomas Gerstenecker. “We continue to seek new services to offer to our existing customers and we are looking beyond our borders for geographic expansion opportunities that allow us to export our expertise across Canada, the US and internationally through organic means and by executing on disciplined M&A. MJardin, based in Denver, Colorado with offices in Toronto and Barcelona, has more that 550,000 square feet under cultivation which, in our view, represents a tremendous opportunity to grow our security services business.”
3 Sixty Secure Corp Announces the Appointment of David McArthur as Chief Corporate Affairs Officer
3 Sixty Risk Solutions Ltd. (OTC: PTVYF) (CSE: SAFE) announced that 3 Sixty Secure Corp, a wholly-owned subsidiary of 3Sixty, has appointed David McArthur to the newly created role of Chief Corporate Affairs Officer (“CCAO”). David will be responsible for government relations, public affairs and stakeholder communications. As CCAO, David has been tasked with the development and execution of the Company’s communications plan and the safeguarding of 3 Sixty’s reputation which has been established through the delivery of world-class security services to its top-tier client base; David previously served as Vice President, Government Relations at 3 Sixty. Prior to joining the Company, David served as Chief of Staff to the Leader of Canada’s Official Opposition and served as Chief of Staff to three Ministers in the Canadian Federal Government including Aboriginal Affairs and Northern Development, Heritage Canada, and Natural Resources Canada.
“David has proven to be an extremely valuable team member and his promotion to Chief Corporate Affairs Officer recognizes the outstanding contribution that he has made since joining the Company,” said Thomas Gerstenecker, CEO and Founder of 3 Sixty. “His work ethic and unequalled experience in the public and private sector are expected to add tremendous value as we welcome new customers and navigate the highly complex regulatory environment of legalized cannabis in Canada. Further, I believe that his unique experiences and skills will be invaluable as we expand operations into the US and internationally. David is a professional that recognizes that communications and government relations have become increasingly complex in a global and connected world and I trust that his extensive public and private experience will contribute to the significant growth expected from 3 Sixty.”
“I’m very excited to be continuing and furthering my role with 3Sixty,” said David McArthur, newly appointed Chief Corporate Affairs Officer. “Thomas and his team have assembled an excellent group of people with fantastic and diverse skill sets. This, when added to a strong vision, dedication to the highest levels of stakeholder service and coupled with significant opportunities for further growth and expansion, make 3 Sixty a very desirable group to work with.”
3 Sixty Secure Corp (CSE: SAFE) announced that the Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., is supporting the Ontario Cannabis Store (“OCS”), which focuses on providing safe and responsible access to cannabis in Ontario. 3Sixty has entered into a multiyear agreement with OCS to provide secure transport services which contribute to the safe delivery of cannabis products within the OCS distribution network.
“I am extremely pleased that we were selected by OCS to provide security services and to contribute to safe and responsible access to cannabis in Ontario,” said Thomas Gerstenecker, CEO and Founder of 3Sixty. “We believe that our agreement with OCS highlights the world-class quality of our security services and the impressive pedigree of our customer base. We continue to seek new services to offer to our existing customers and we are looking beyond our borders for geographic expansion opportunities that allow us to export our expertise across Canada, the US and internationally as we seek organic growth and consider disciplined M&A opportunities to accelerate growth.”
“Ontario, with a population of more than 14 million people, is Canada’s largest cannabis market.” added Thomas Gerstenecker. “Estimates by the Federal Government indicate that Ontario’s potential market for cannabis is more than $2 billion which is a tremendous opportunity for 3Sixty and for Canada’s 144 Licensed Producers, of which 76 are in the province of Ontario. 3Sixty has relationships with Canada’s largest LP’s, we continue to grow our customer base, and our agreement with the OCS is expected to contribute to significant growth at 3Sixty as the Ontario market develops.”
3 Sixty Secure Corp. Enters into Multiyear, National Security Services Agreement with Canopy Growth Corporation
3 Sixty Risk Solutions Ltd. (CSE: SAFE) announced that 3 Sixty Secure Corp, a wholly-owned subsidiary of 3Sixty, has entered into a three-year master services agreement to provide security services to Canopy Growth Corporation (“Canopy Growth”) (TSX: WEED) (NYSE: CGC) across Canada. As part of the agreement, 3 Sixty Secure Corp. will provide 24/7 guarding services to protect Canopy Growth’s Canadian facilities, as well as other security services as required. The agreement will include all existing and future Canopy Growth facilities across Canada. The agreement with Canopy Growth expands services to include all of its national facilities and extends the prior agreement from a one-year term to a three-year term.
“Reaching an agreement that extends and expands security services provided to Canopy Growth marks another important milestone for 3Sixty as we continue to assert ourselves as leaders in cannabis security,” said Thomas Gerstenecker, CEO and Founder of 3Sixty. “I believe that our selection by Canopy Growth, a world-leading cannabis company, reaffirms the quality of our protective service offerings and supports our position as a leader in security services. Our sales pipeline is robust, and we are engaged with numerous companies seeking leading security solutions tailored to the cannabis industry and within non-core industries that require a full-spectrum of exceptional security services and solutions.”
3 Sixty Risk Solutions Ltd. Commences Trading, Provides an Operational Update and Welcomes David Hyde as President
3 Sixty Risk Solutions Ltd. ("3Sixty" or the "Company") is pleased to announce that it expects to commence trading on the Canadian Securities Exchange ("CSE") today under the ticker symbol "SAFE". The Company, which operates through its wholly-owned subsidiary, 3 Sixty Secure Corp., is also pleased to announce an operational update which includes significant progress in expanding its security consulting, guarding and secure transport business and continued growth of its consulting services business.
"I am extremely pleased with the progress that we have made in realizing our goal of going public as a means to accelerate our strategic growth plans with enhanced access to capital," said Thomas Gerstenecker, CEO and Founder of 3Sixty. "We successfully raised capital in October, and we have delivered on our promise to significantly grow our consulting, guard and transport customer base, which includes many of Canada's leading LPs, and we continue to increase the number of customers served by our consulting service. I look forward to continued execution of our growth agenda by filling what I consider a serious gap in the Canadian and US cannabis security industry as recreational cannabis supply grows and matures in Canada, in the US and globally."
"Further, I would like to welcome David Hyde as President of 3 Sixty," added Thomas Gerstenecker. "David brings extensive industry experience as a security expert and the founder of David Hyde & Associates, Canada's leading cannabis security consultancy services. I am confident that we have assembled a world-class management team and board of directors which positions the company extremely well as one of the largest and most experienced companies providing security services to the emerging cannabis industry within Canada."
Operationally, the Company is pleased to report that its two major business segments experienced meaningful growth in the three months ending November 30.
- 3Sixty exited August 2018 with more than 40 secure transport and guarding customers, and more than 400 security consulting clients;
- On a percentage basis, guarding and secure transport customers experienced the highest growth, up approximately 65% following the addition of 27 new customers;
- On an absolute basis security consulting experienced the largest uptick in clients with the addition of 82, up approximately 20% in the period.
- Importantly, 3Sixty successfully converted five security consulting clients from one of its predecessors, Total Cannabis Security Solutions Inc. ("TCSS"), into guarding and secure transport customers, an achievement which reinforces the thesis that there are significant opportunities to organically grow sales through cross-sell to the combined 3Sixty and TCSS customer base which has had very little overlap to date.
- The Company is focused on continued growth within the Canadian and US cannabis industry with numerous opportunities to expand into adjacent security services, new industry verticals and to realize international expansion.
3Sixty is one of Canada's leading security service providers to the cannabis sector providing a comprehensive suite of security services including guarding and secure transport, security consulting, security management, integrated security systems and executive protection. 3Sixty expects to deliver significant value to its customers, shareholders and stakeholders by:
- Providing world-class seed-to-sale security expertise to the cannabis industry. As a leading security company with a focus on cannabis, 3Sixty expects to continue to grow its leadership position in core security services and security consulting. The Company is led by executives with substantial experience in security services, military, police services, security consulting and NGOs which the Company believes is unique in the Canadian and US security industry serving the cannabis sector.
- Leveraging the high-growth cannabis industry as the cornerstone of 3Sixty's business. The Company has been a pioneer in the cannabis industry since 2013. Deep expertise and first-mover advantage in the cannabis industry has positioned 3Sixty favourably in a complex and highly regulated industry.
- Taking advantage of significant organic growth opportunities in new geographies, verticals and industries. Canadian cannabis is at the core of 3Sixty's business. However, the Company believes that there are significant growth opportunities available by adding to the portfolio of security services offered to cannabis clients and through expansion to the highly lucrative US market. Further, the Company expects to add non-cannabis customers in industries that are characterized by high value products where security is critical. Organic growth opportunities are expected to be accelerated through the use of strategic M&A where opportunities arise.