Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }
HIGHLIGHTS
  1. 3 Sixty Secure now operating in Nevada and aims for three more states in 2019
  2. Company is now focusing on growth in the United States
  3. Cannabis accounts for roughly 60 per cent of 3 Sixty’s business in Canada

Canada’s nascent cannabis industry has given one young security and transportation company such a boost that its employee numbers ballooned by 75 times since early 2018, and it just expanded into the United States with plans to enter the European market by the end of this year.

On Thursday, 3 Sixty Risk Solutions Ltd. said its wholly-owned subsidiary 3 Sixty Secure Corp. is now operating in Nevada, with U.S. expansion plans slated for Missouri, New York and California later this year. The Almonte, Ontario-based company’s staff numbers could surge as high as 1,000 by the end of 2019, up from the roughly 600 currently in Canada, said Thomas Gerstenecker, founder and chief executive of 3 Sixty.

This compares with eight employees in early 2018.

Story continues below advertisement

“We expect to gain market share across Canada this year and have a significant presence in multiple states before the end of this year, and basically have a level of presence in the European Union,” said Mr. Gerstenecker, who previously held executive security roles with United Nations and spent years with Canada’s elite special forces group JTF2.

Revenue has jumped along with the company’s rapid growth so far this year. In the first quarter of 2019, 3 Sixty’s revenue soared to $3.4 million versus $353,000 in the year-ago period, though like most businesses operating within the burgeoning cannabis industry, the capital spending necessary for quick expansion meant the quarter saw a net loss of $4.8 million, according to its latest financial report.

“The intention is heading toward the U.S. more so than Canada now,” Mr. Gerstenecker said, adding that the company’s second-quarter revenue is expected to be no less that $7.5 million. “You can appreciate the scale.”

Mr. Gerstenecker started 3 Sixty Risk Solutions Ltd. in 2014, when the small company focused on security consulting.

But “then it morphed,” he said, with medical cannabis and then recreational pot late last year when it was legalized. This spurred the company to buy around 150 vehicles and establish seven secure storage locations in five provinces from Alberta to New Brunswick.

This compares with early 2018 when the company had just two vehicles and no secure storage facilities.

By 2017, 3 Sixty was transporting medical cannabis, so when the recreational pot industry began in late-2018, the company was ready for it: advising legal growers on their security requirements and transporting pot – often in armored vehicles for high-valued shipments that can reach millions – in its various stages.

Story continues below advertisement

Transporting, guarding and storing cannabis makes up roughly 60 per cent of 3 Sixty’s business and the company said it has around 65 per cent market share in Canada.

Demand for 3 Sixty’s secure transportation services, which include tracking temperatures inside the vehicles and a chain of electronic signatures, does not stem from government requirements but rather those of insurance, he said.

“We believe this will become very similar to how money is moved; it will be insurance driven,” Mr. Gerstenecker said.

But unlike cash, the same cannabis plants and products need to be transported as many as five times during the cycle from plant to retail, often starting with genetics to a licensed producer, then dried products to a testing facility, then secure storage, a distribution center and finally to a store.

Before recreational pot was legalized in October 2018, 3 Sixty was doing around 12 secure transport runs per week.

“Last week," Mr. Gerstenecker said, “we did 121.”

Related topics

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies