ALMONTE, Ontario, Aug. 20, 2019 (GLOBE NEWSWIRE) --

Quarterly revenue increased to $7.55 million, a 119% increase over Q1 2019

Sequential organic revenue growth of $1.5M over Q1 2019

Continued customer wins are expected to add predictable recurring revenue of approximately $10 million

Key Q2 2019 Financial Highlights

Quarterly revenue increased to $7.55 million, a 119% increase over Q1 2019 revenue of $3.4 million, and a 971% increase (June 30, 2018 - $705 thousand) over Q2 2018

Sequential organic revenue growth of $1.5M over Q1 2019

Adjusted EBITDA increased to $(1.6) million from $(1.8) million in the prior quarter

Net income of $(3.6) million improved sequentially by $1.2 million over Q1 2019

Reported adjusted EPS of $(0.02) versus $(0.08) in the prior quarter

Acquired INKAS® Security Services Ltd. creating one of Canada’s largest secure cannabis transport companies

Achieved and exceeded Q2 financial guidance targets previously set by management

Based on predictable recurring revenue, management projects an increase to over $8.5 million from Q2 to Q3 2019 from organic growth

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, today reported its unaudited financial results for the three month period ended June 30, 2019. The consolidated financial statements and management’s discussion and analysis for the period will be filed contemporaneously on SEDAR and available on the Company's website at www.3sixtysecure.com. Unless otherwise indicated, all references herein to dollars or "$" are to Canadian dollars.

“I am extremely pleased with the operational and financial progress that 3 Sixty has made,” said Thomas Gerstenecker, CEO and Founder. “We increased revenue by more than $4.1 million including $1.5 million of organic growth as we continue to grow our customer base and increase billings to our existing customers. We have made great progress integrating INKAS Security Services Ltd., and we are seeing improvements in revenue and costs. We are realizing significant growth in our business and I believe that we remain in the early innings of growth for the industry broadly and for 3 Sixty Secure as a leading provider of security services in Canada and now the US.”

Subsequent to the Quarter Highlights and Operational Update

Expanded operations to US with entry into Nevada; providing security services to 1933 Industries and multiple dispensaries in Nevada

Operational readiness is now complete with licensing, and logistics in Florida, Ohio, and managed-services New Jersey

The Company plans continued expansion in 2019 including the States of Missouri, New York, Colorado, Arizona and California

Continued customer wins are expected to add predictable recurring revenue of approximately $10 million, on an annualized basis, that are anticipated to be deployed and executed beginning in Q3, subject to the terms and conditions of such agreements

“Expansion to the US has been a strategic priority for the company since going public,” said Thomas Gerstenecker, CEO and Founder. “Our team has been diligent in ensuring that we met the strict regulatory hurdles in order to offer security services to the US cannabis industry. We have established a beachhead in Nevada and continue to expand into new jurisdictions to support our strong organic growth.

Financial Guidance for Fiscal 2020

3 Sixty Secure is providing 2020 full year consolidated revenue guidance as follows:

Net revenue of approximately $60 million to $80 million

Second Quarter Financial Results

(expressed in Canadian dollars) Three month

period ended

June 30, 2019 Three month

period ended

June 30, 2018 Six Month

period ended

June 30, 2019 Six Month

period ended

June 30, 2018 $ $ $ $ Revenue 7,547,577 704,911 10,991,406 1,057,548 Operating Expenses Wages and benefits 6,443,784 1,249,005 9,489,886 1,434,961 Office and administrative 336,866 89,498 796,394 164,831 Depreciation 822,418 - 1,212,443 - Consultants 1,147,498 46,295 2,178,009 140,810 Vehicle 413,934 64,326 575,692 91,765 Travel 214,931 34,045 399,700 44,111 Advertising 355,327 30,090 1,002,099 32,800 Financing Costs 155,156 18,395 212,700 25,746 Bad debt expense 43,525 - 133,086 - Stock-based compensation 72,523 - 172,361 - Insurance 372,075 6,525 434,193 17,060 Information technology 99,427 8,889 176,532 13,204 Freight and Storage 582,817 10,145 902,719 14,177 Training 62,064 7,067 89,417 20,525 Listing expense - - 1,616,149 - 11,122,345 1,564,280 19,391,380 1,999,990 Operating loss (3,574,768 ) (859,369 ) (8,399,974 ) (942,442 ) Cumulative translation adjustment (1,725 ) - (1,725 ) - Net loss and comprehensive loss (3,576,493 ) (859,369 ) (8,401,699 ) (942,442 ) Loss per share (0.02 ) (0.01 ) (0.08 ) (0.03 ) Weighted Average number of shares outstanding,

basic and diluted 146,184,781 58,403,164 108,736,020 37,542,204

Revenues - Revenue for the three months ended June 30, 2019 was $7.55 million, an increase of $4.1 million (119%) compared to the three months ended March 31, 2019 and a $6.8 million increase (971%) compared to the three months ended June 30, 2018, when sales were $0.7 million. Additional licensed producers and a greater number of transportation runs contributed to organic revenue growth, which have seen an increase of over 1,285% compared to the three months ended June 30, 2018.

- Revenue for the three months ended June 30, 2019 was $7.55 million, an increase of $4.1 million (119%) compared to the three months ended March 31, 2019 and a $6.8 million increase (971%) compared to the three months ended June 30, 2018, when sales were $0.7 million. Additional licensed producers and a greater number of transportation runs contributed to organic revenue growth, which have seen an increase of over 1,285% compared to the three months ended June 30, 2018. Expenses - Total expenses for the three-month period ended June 30, 2019 were $11.1 million, a $9.6 million increase compared to the three months ended June 30, 2018, when total expenses were $1.6 million. The increase in total expenditures year-over-year is due to the Company’s growth in the quarter whereby the Company acquired over 350 new employees and assets from the INKAS® Security Services Ltd. business.

- Total expenses for the three-month period ended June 30, 2019 were $11.1 million, a $9.6 million increase compared to the three months ended June 30, 2018, when total expenses were $1.6 million. The increase in total expenditures year-over-year is due to the Company’s growth in the quarter whereby the Company acquired over 350 new employees and assets from the INKAS® Security Services Ltd. business. Adjusted EBITDA - Adjusted EBITDA for three-month period ended June 30, 2019 was ($1.6 million), which represents a decrease of $0.9 million as compared to the three-month period ended June 30, 2018. Increased operating and overhead expenses, such as labour costs, advertising, promotion and professional fees were incurred for the acquisition of the assets of INKAS® Security Services Ltd. business.

Non-IFRS Measures

Adjusted EBITDA is not a recognized performance measure under IFRS, does not have a standardized meaning and therefore may not be comparable to similar measures presented by other issuers. Adjusted EBITDA is included as a supplemental disclosure because management believes that such measurement provides a better assessment of the Company’s operations on a continuing basis by eliminating certain non-cash charges and charges or gains that are nonrecurring. Adjusted EBITDA is defined as net loss excluding interest, taxes, depreciation and amortization, and share-based compensation and listing expense. Adjusted EBITDA has limitations as an analytical tool as it does not include depreciation and amortization expense, interest income and expense, taxes, share-based compensation and transaction fees. Because of these limitations, Adjusted EBITDA should not be considered as the sole measure of the Company’s performance and should not be considered in isolation from, or as a substitute for, analysis of the Company’s results as reported under IFRS. The most directly comparable measure to Adjusted EBITDA calculated in accordance with IFRS is operating income (loss). The above is a reconciliation of the Company’s operating loss to Adjusted EBITDA.

Conference Call

Management will host its quarterly conference call on Tuesday, August 20, 2019 at 9:00am EST to discuss the results. Dial-in details are as follows:

Toll Free (North America): 1(877) 221-6399

A replay of the conference call will be available on the 3 Sixty Secure investor website at www.3sixtysecure.com/investors.

About 3 Sixty Risk Solutions Ltd.

3 Sixty Risk Solutions Ltd., operating through its wholly-owned subsidiary, 3 Sixty Secure Corp., is Canada's leading security service provider to the cannabis sector, transporting millions of dollars of product every month. 3 Sixty now provides enhanced cash management, cannabis security consulting, guarding and secure transport security services to more than 600 customers and more than 100 cannabis licensed producers. 3 Sixty employs over 600 staff, operates a fleet of over 150 vehicles and is one of the 3rd largest cash management service providers in Canada. Find out more at www.3sixtysecure.com and follow us on Twitter, Instagram or Facebook.

For further information regarding the Company, please contact:

Carlo Rigillo, Chief Financial Officer, 3 Sixty Secure Corp.

(866) 360-3360,

IR@3sixtysecure.com

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the business and operations of 3 Sixty. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, 3 Sixty assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.