The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) reported a 359% increase in revenue to $7.72 million for the second quarter ending December 31, 2018. This was a 50% sequential increase over the first quarter revenue of $5.14 million.
The company trimmed its losses by delivering a net loss for the quarter of $1.55 million versus a loss of $2.03 million for the same time period last year. The losses dropped sequentially as well from the first quarter net loss of $5.39 million.
“We’re pleased with our second quarter results, which show meaningful revenue growth quarter-over-quarter and continues to reflect our strong operational execution,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Since Supreme received its license over two years ago, we have been one of the fastest scaling Licensed Producer’s in Canada, demonstrated by one of the strongest first years of revenue in the sector.”
During the quarter, the company was able to raise $100 million of gross proceeds through a bought deal offering of 6% unsecured convertible debentures due 2021 and led by GMP Securities L.P. and BMO Capital Markets. The company also uplisted from the TSX Venture Exchange to the Toronto Stock Exchange.
“During the second quarter, we made our first shipments of 7ACRES-branded product to adult-use markets in six provinces. The consumer feedback has been overwhelmingly positive. Cannabis enthusiasts are vocal about their passion for high-quality cannabis. We believe 7ACRES has quickly established itself as Canada’s only premier cannabis producer at scale. With construction on the flowering room at 7ACRES scheduled to be completed by the end of March, we’re looking forward to increasing our production capacity to help meet consumer demand and drive further revenue growth throughout the year.”
The company’s flagship brand 7ACRES, was named Brand of the Year at the 2018 Canadian Cannabis Awards. 7ACRES also entered into a supply agreement with the New Brunswick Liquor Corporation and has been registered as a supplier in the province of Saskatchewan, expanding distribution into eight provinces.
Subsequent To The Quarter End
Supreme contracted Medipharm Labs Co. to facilitate the launch of the Company’s cannabis oil products line. Supreme Cannabis and Khalifa Kush Enterprises announced an international partnership agreement to develop and launch premium cannabis products for the Canadian and international markets excluding the United States.
Supreme stock was lately trading at C$2.26, up from the company’s 52-week low of C41.15, but below the year’s high of C$2.43.