Cannabis RegTech Company Well Positioned for Long-Term Growth as More States Legalize, Entrepreneurs Expand Operations, Additional Ancillary Businesses Look to Enter Sector, Regulations Remain Fragmented and Federal Dialogues Continue
DENVER, Dec. 16, 2021 (GLOBE NEWSWIRE) — Simplifya (“Simplifya” or “the Company”), the leading regulatory and operational compliance software platform serving the cannabis industry, announced it experienced 100% growth year-over-year in 2021. The Company also announced several other key 2021 growth metrics and accomplishments such as marketplace expansions, new product launches and new hires.
“As more states legalize and migrate to adult-use; new banks, insurers, law firms and other ancillary businesses enter the space; businesses expand the number of markets they operate in; additional regulations and guidance are enacted and are updated; and the federal dialogue continues – keeping track of all the stringent compliance requirements has only become more complicated,” said Simplifya CEO and Co-Founder Marion Mariathasan. “However, in 2021, we saw an astounding number of cannabis operators and ancillary businesses realize RegTech compliance is no longer just ‘nice to have’ – but a ‘must have’ – leading to our business’ record-breaking growth.”
Simplifya Growth Highlights
- Simplifya experienced 100% growth year-over-year (2020 to 2021).
- The Company saw a 40% uptick year-over-year in the number of clients using its Simplifya Self Audit platform as more owners and operators look to protect their licenses and businesses from operational and regulatory compliance risks.
- Simplifya expanded its core suite of services – Simplifya Standard Operating Procedures (SOPs), Simplifya Smart Cabinet and Simplifya Self Audit – from 19 to 24 states.
- The Company recently launched Simplifya Market Guide, a new platform that arms cannabis and cannabis-related businesses with comprehensive user-friendly state regulatory summaries for all 50 states, covering regulatory requirement overviews such governing law, governing authority, local opt-out, policy movement, banking guidance, tax structures and rates, along with 20+ other regulatory categories.
- Simplifya made several key hires, including appointing Katrina Skinner as its general counsel and chief banking officer – one of the country’s top cannabis banking, financial services and compliance experts.
- The Company formed several key partnerships with regulatory, tax, legal and D&O insurance topic experts, including Hub International, Burns & Levinson and CohnReznick, which it expects to expand throughout 2022.
- Simplifya also plans to expand its core services to an additional six states in 2022.
With U.S. legal sales projected to surpass $24B this year, a 38% increase over 2020, and as the industry continues to grow at an accelerated pace, cannabis compliance has increasingly become more difficult to track for those not using RegTech solutions. With cannabis operators and ancillary businesses required to abide by additional regulations, more entities are turning to Simplifya’s RegTech solutions to help them efficiently navigate the sector’s complex landscape, and for good reason. According to a recent study completed by Fyllo in partnership with The Harris Poll, almost two-thirds of leaders operating in highly-regulated industries such as cannabis stated that compliance was the biggest barrier to achieving their business goals; and compliance ranked higher than having the right strategy or even having capital to fuel growth.
Mariathasan added, “Today, running a cannabis business and working with clients in the space is unlike any other. Entrepreneurs face the hurdles of building their businesses in a still federally illegal marketplace and additional stresses due to stringent federal, state, county and city laws. Through our suite of RegTech solutions, we are not only helping our clients understand and stay on top of cannabis’ ever-evolving compliance landscape, but we are also helping them operate in a compliant way, demonstrate a history of compliance, hold employees accountable, remediate any potential issues and mitigate the high risk associated with non-compliance. In 2022, we look forward to assisting more entrepreneurs, governing and regulatory bodies, insurers, banks and financial institutions save time and money, create new opportunities and remain compliant under state, county, local and FinCEN Cannabis Banking Guidance.”
Simplifya is the cannabis industry’s leading regulatory and operational compliance software platform; our suite of products takes the guesswork out of confusing and continually changing state and local regulations. Featuring SOPs, badge tracking, document storage, tailored reporting, and employee accountability features, our Custom Audit software can reduce the time you spend on compliance by 45 percent. For more information, visit www.simplifya.com.