HLIX: Given our multiple business lines in multiple states, we have any number of competitors, and no single one challenges us as an overall business. In each business line, we have specific strategic and operating advantages that we compete on, but as an overall business our diversified nature gives us a powerful advantage, as margin compression or a business slowdown in one line or state can be offset by improvements or stability in other areas.
Our data infrastructure also enables us to create a very nuanced intelligence picture of the industry due to the myriad of data streams that we receive, which helps us make better strategic and operational decisions.
CIM: Why are security companies in the cannabis space struggling? Blueline Protection Group is currently operating at a loss. CannaSecurity America recently went bankrupt. How can you assure us HLIX’s security line of business will not suffer the same fate?
HLIX: Reasons can differ in different markets, but overall it’s safe to say that the margin compression for security clients that inevitably arises in commodity markets has made itself felt in security pricing and as the industry consolidates, the number of available clients. At Helix’s security operations, we placed an emphasis on a different mix of security services, and this has stood us in good stead, and we are confident that our approach will carry the day as we expand.
CIM: How is the California rollout progressing?
HLIX: We have secured some very significant clients already, but we are proceeding in line with the market itself, and so have been cautious to date. As with other states, despite its great potential, we see California as a market that will develop in fits and starts, much like markets in Africa or the Middle East, where we gained much of our investment and operating experience.
CIM: Growing revenues, significant positive transformation and relationships, low number of outstanding shares … I think we can agree it’s not by chance were shining the spotlight on your company at this time. Helix is also looking at an international presence … can you expand on this aspect of your business and specifically Helix’s recently announced partnership with Timeless Herbal Care (“Timeless”), a leading Jamaican cannabis grower?
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