Raising Cannabis Capital 0096: Helix TCS

Through organic growth and strategic acquisitions Helix TCS has grown to be the cannabis industry's premier operating service platform for producers, manufactures & distributors. CEO Zachary Venegas speaks with Dan Humiston about their subsidiaries which include BioTrackTHC, Cannabase, Helix Security & Amercanex and their future growth strategy which includes additional acquisitions.   Helix TCS is a public traded company listed on the OTCQB under the symbol HLIX.  

Produced By MJBulls Media

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Dan Humiston:
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ZACHARY VENEGAS:
So acquisition activities are definitely part of our global strategy so I'd be very shocked there weren't more acquisitions in our future. The big part is that as acquisitions get larger they may start to contribute more revenue to our top line. But we try and keep things happy and our base much larger now. We're having strong growth in the business. We just completed our 10k. That's all public. We've had a really strong growth this year.

Dan Humiston:
It's the MJBulls podcast a show about raising cannabis capital. I'm Dan Humiston. And on today's show how this company through a combination of organic growth and acquisitions has become the largest ancillary Cannabis Company in the industry.

Dan Humiston:
Today and the raising cannabis capital series we are joined by ZACHARY VENEGAS who is the CEO of Helix TCS. Zach welcome to the MJBulls podcast.

ZACHARY VENEGAS:
Thank you very much It's a pleasure to be here.

ZACHARY VENEGAS:
Thank you for having me.

Dan Humiston:
Well Helix tcs has quietly become the largest ancillary Cannabis Company in the industry and some of the companies under the helix and brawlers are names that we all know like biotech THC cannabis Helix security and you know as soon as this deal closes . And what makes this so impressive is just how quickly you've gobbled disorganisation together. I mean congratulations Zack this is quite an accomplishment in it's such a short period of time.

ZACHARY VENEGAS:
Thank you very much. It's going to exciting.

Dan Humiston:
Yeah. I would say Helix tcs is a publicly traded company. Yeah it's trading at the where we talk about each year subsidiaries in a minute but let's start off. Can you give us a brief overview of what Helix tcs does.

ZACHARY VENEGAS:
Sure and I think it's a great place to start because the logic behind everything that we do is simply that we map critical infrastructure into the look out of this industry. No more no less. We're very focused on bringing to growers retailers extractors those pieces of infrastructure system that they really need to stay compliant and operational. And we give them best in class services in those particular service areas that we lead them to do things that they do best like rail or retail or have a reduced price or whatever it is that they're doing. So they need that too often and we help them be more successful and manage their risk all throughout the value chain.

Dan Humiston:
I see. So let's just start off we'll go through each of the subsidiaries starting with bio track THC and we'll just talk about each one. Give us an overview of what each one does.

ZACHARY VENEGAS:
Sure. So biotrack THC is the oldest and largest feeder cell compliance software in the mix as you know cannabis became was still a federally scheduled substance has requirements to be tracked at every stage of its lifecycle. Everything from four centimeters higher or so bodily to being sold. And so major THC tracks all aspects of that also that data itself is very important to the efficient and proper running of either a grower or a retailer so that we supply the software that allows them both to track those aspects of their business. In addition all feature of retail and wholesale reporting requirements and we supply those to that software.

Dan Humiston:
Yeah I know like states will select a company to manage that and you have quite a few states that bio track is the supplier for the state. How many states are you in right now.

ZACHARY VENEGAS:
Right. So we have six we were called government contracts and that is offer up the United States and so we have the tango off of Puerto Rico as well. So each state is a bit different has reporting requirements meets TransLink those reporting requirements it's or usable software package that allows the stitcher extract the information they need to properly administer the cannabis program.

Dan Humiston:
Okay how about cannabis.

ZACHARY VENEGAS:
So cannabis is the oldest wholesale marketplace in the industry. It's something like a negotiated transactional platform almost like Craig's with a wholesale market or commodities market interface that allows licensed only retailers and wholesalers to buy and sell cannabis add weight much like a commodity exchange industry. But cannabis is essentially a wholesale exchange very similar to cannabis.

Dan Humiston:
Okay talk about amercanix for a minute then.

ZACHARY VENEGAS:
So those are the two we haven't acquired and them both because cannabis is a bit more in their free space meaning you can negotiate with the app to get to a price and then an amount that they want whereas having a character stroke is just a commodity exchange and it was founded by essentially commodity traders and it has some very prominent commodity market personalities on its board. That one's very focused on buying you know Qantas hard bread wheat. Number two you know two times of that at this price it's done and then it's set up for delivery. That market is much much more so much of that style is from a market that is the other.

Dan Humiston:
Okay okay.

Dan Humiston:
This industry probably more than any other has much heightened security requirements and I'm assuming that that's what Helix security subsidiary is correct.

ZACHARY VENEGAS:
And so here it is. That was the place where we started although we always knew we would wind up in software foreign wholesale and start somewhere. My partner and I had good experience and active three operations in places like Iraq and Africa and all these other places. We focused on that first because that gives us two very important advantages one is sort of a source of industry regulation through because of your focus. Compliance security really understand in a granular way. The regulations in and around moving and producing cannabis you really understand as the fighting starts. And then number two. It gives you a feel for the support of the industry because we're moving fast. We're moving cash we're moving people really product. And so you get a feel for what's really working and what's not. And also the trends and which way the wind is blowing so to speak within the industry.

ZACHARY VENEGAS:
It gave us a lot of ancillary intelligence about which way the market is going allowed us to make the choices about our follow on acquisition and about which way we want to position ourselves within the industry.

Dan Humiston:
Well that's on the website right now and this Helix security very very comprehensive. I mean you do it all. It's a one stop shop when it comes to security.

Dan Humiston:
I want to take a minute to remind all of our listeners about a new podcast produced by MJbulls media Hemp Barons is a weekly show about the company's products and entrepreneurs who are using this amazing plant to create and improve the products we use every day. You can listen to her parents every Tuesday and Apple I Tunes stitcher Spotify or wherever you get your podcasts from.

Dan Humiston:
Well let's jump forward. Tell us about the plans for the future if you plan to continue growing at this pace.

ZACHARY VENEGAS:
We have plans to grow at this pace even faster. A lot of it really depends on how the industry rules out this year for us was a bit of a snow here in the sense that California is a rollout is fast and everyone thought it was. We've been very careful about when and where we spend resources and rolling out just right over 80 markets. But this year when I say here let's say going back six months in 2018 and so far it's only 19 has really been about international expansion. Just as much it has been about domestic expansion project 2019 we'll see some significant domestic expansion within the US. We've got some great things in the works but at the same time everyone knows that the former president of Mexico President Fox is joining our board. We're focused on bringing our full product and service to international customers. There's a lot of international opportunities for dealers. Yes of a full suite of services that's going to be very exciting. I think you will see that in the year to come.

Dan Humiston:
All right. I couldn't agree with you more. Everybody is on the show is talking about the international opportunities and this is all happening at once. We are so focused on United States the people that live here and we don't realize that it's happening just as quickly in other places. So far your growth pattern has been kind of 50/50. Organic growth in maybe 50 percent acquisition. Is that the right plan for moving forward is there opportunities for more acquisitions coming up.

ZACHARY VENEGAS:
So acquisition activities are definitely part of our global strategy. So I'd be very shocked if there were more acquisitions in our future. The big part is that as acquisitions get larger they may start to contribute more revenue to our top line. But we try and keep being 50/50 and our base is much larger now and we're having strong growth in the business. We just completed our 10k and that's all public. Now we've had some really strong growth this year. We'll continue to see acquisitions but we won't. So maintenance overwhelm our organic growth. Our focus on rightsizing creating strong organic growth. That has to be integral part of what we're doing. We still will try and focus things on keeping things balanced between acquisition and organic growth.

Dan Humiston:
As we said at the beginning of the show Helix TCs is a publicly traded company trading on the . I noticed on your website if you wanted information there's a tab on the Helix Web site it's called Investor Relations tab so if anybody wants more information wants to purchase some of their stock I'd recommend going to their Web site and just click on the investor and the Investor Relations tab. So we've been speaking with SEC Vegas CEO of Helix T.C.s And as I said earlier we'll have all of their information on the MJBulls Web site. So if you're interested in looking at their stock or if you're a company that may fit within their portfolio and you think you might be in an interesting acquisition I'm sure Zack would love to speak to Zack.

Dan Humiston:
Anything else parting words for our listeners.

ZACHARY VENEGAS:
No just getting back up to talk about here on your show. We think it's going to be a great year for us and I encourage anyone who's listening to our website check about did we like what we're doing.

Dan Humiston:
Yeah I think it's gonna be a great year for the entire industry. But I love what you're doing so keep it up. Thank you very much.

Dan Humiston:
Just a quick reminder that you can become an MJbulls member for just four dollars and ninety nine cents per month and enjoy exclusive access to companies pitch decks and the MJBulls cannabis capital directory. Joined today at MJBulls dot com.

Dan Humiston:
Thanks for listening to the MJBulls podcast. To learn more about today's guest or to become a guest. Visit our website at MJBulls dot com. Today's show is produced by permanent media with original music composed by Jamie Humiston. I'm Dan Humiston and you've been listening to the MJBulls podcast.

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