Supreme Cannabis Archives - Page 2 of 2 - Green Market Report

Debra BorchardtMay 16, 2019
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4min12750

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) is acquiring Canadian-based Blissco Cannabis Corp. (CSE: BLIS) (OTCQB: HSTRF) in an all-stock deal valued at C$48 million. Supreme would be buying all of Blissco’s stock

Blissco Cannabis is a Canadian wellness cannabis brand based in British Columbia and a multi-licensed processor, cultivator, and distributor of premium cannabis. Blissco owns and operates an 18,000 square foot, state-of-the-art extraction, processing, and cultivation facility located in Metro Vancouver, British Columbia. Blissco has supply agreements in British ColumbiaAlbertaSaskatchewan, and New Brunswick.

“Blissco has built a distinct and authentic premium wellness brand. Through our strategic partnership and prior investment in the company, we developed a deep understanding of the business and a high level of confidence in the senior management team. This transaction will allow Blissco to focus its business around the production and commercialization of cannabis oils and topicals for the premium wellness consumer,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Blissco shares our vision, mission, and values. Through this transaction, we will combine best-in-class processes, commercialization, marketing and brand building expertise, and skilled management, ensuring we continue to achieve our vision to improve global well-being with cannabis.”

Deal Details

Each Blissco share will be exchanged for 0.24 of a common share of Supreme Cannabis.  Blissco’s CEO, Damian Kettlewell will remain at the company while benefiting from Supreme Cannabis’ expertise, infrastructure and access to capital. Mr. Kettlewell has committed to retaining at least 75% of his shares for a minimum of two years.

“Supreme Cannabis is the best positioned company in the cannabis space to help Blissco achieve its ambition of delivering innovative, quality assured full-spectrum cannabis products to the world,” said Damian Kettlewell, CEO of Blissco. “By merging with Supreme Cannabis, Blissco shareholders will benefit from the combined expertise of both companies in growing premium cannabis brands, producing and procuring high-quality inputs, commercializing new products, and ensuring regulatory compliance. Blissco shareholders will also benefit from Supreme Cannabis’ enhanced trading liquidity on the TSX and greater access to capital that will allow us to focus and accelerate Blissco’s premium wellness business.”

Supreme Cannabis’ portfolio includes 7ACRES, its wholly-owned subsidiary, and multi-award-winning brand; Cambium Plant Sciences, plant genetics, and cultivation IP company; Medigrow Lesotho, a cannabis oil producer located in southern Africa; and a brand partnership and licensing deal with Khalifa Kush Enterprises Canada.

 


StaffMay 14, 2019
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7min16310

 CannTrust

CannTrust Holdings Inc. (TSX:TRST) (NYSE:CTST) reported that its quarterly revenue rose 115% to $16.9 million versus last year’s $7.8 million for the same time period. 67% of the revenue came through the medical channel and 33% through the recreational channel for the quarter ending March 31, 2019. The net income for the quarter was $12.8 million, a big improvement sequentially over the loss of $25 million reported in the fourth quarter of 2018.

“The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput,” said Peter Aceto, CannTrust CEO. “With the successful closing of our equity offering providing gross proceeds of US$170 million, we are well positioned to execute on our growth plans. Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year.”

CannTrust report that it sold over 3,000kg of dried cannabis equivalent, a nearly 200% increase over the prior year, at an average net price of $5.47 per gram. The company said that cost of sales per gram sold and cash cost per gram sold were $3.03 and $2.77, respectively, compared to $3.08 and $2.94, respectively, in the fourth quarter of 2018. The total active patient count reached 68,000 on March 31, 2019, a 70% increase over the first quarter of 2018

Looking Ahead

The company acquired 81 acres of land in British Columbia for outdoor cultivation with a potential yield of 75,000kg of production in 2019, subject to regulatory approval. CannTrust obtained all necessary permits from the Town of Pelham for the construction of the 390,000 square foot Phase 3 expansion.

The company is developing innovative products for the expected legalization of new product formats in Canada later in 2019. These products include vape pens, beverages, confectionaries, and healthcare products. CannTrust said it is also making strategic investments into its operational capacity to prepare for expected increases in demand for its products.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) reported that its third-quarter 2019 net revenue was $10 million, a 382% increase from $2.1 million in Q3 2018 and a 29% sequential increase from the second quarter. Still, the company delivered a net loss of $7.1 million for the quarter, almost double the net loss of $3.3 million for the same time period in 2018.

“Our Company is pleased with the results of our third quarter financials and with the progress made thus far on our strategic priorities for the 2019 calendar year. This quarter saw a marked increase in revenue on both an annual and quarter-over-quarter basis. This revenue growth was driven by an increase in our capacity at the 7ACRES facility, a ramping up of our product packaging capabilities and, we believe, consumer preference for high-quality cannabis,” said Navdeep Dhaliwal, CEO of The Supreme Cannabis Company, Inc.

The company said that across Canada, sales revenue from recreational markets increased 63% between FYQ22019 and FYQ32019. Over the quarter, Supreme said it worked with MediPharm Labs Inc. (TSXV: LABS), a leading cannabis extractor, to produce its premium oil products line. As announced in November 2018, under MediPharm and Supreme Cannabis’ three-year contract, 7ACRES will supply a minimum of approximately 1,000 kg of high-quality cannabis trim per year as input to MediPharm for the extraction and production of premium, high-terpene cannabis oil products.

Halo Labs

Halo Labs Inc. (AGEEF) reported first-quarter 2019 revenue of $8,718,503 versus $2,168,976 in first quarter period in 2018. The company is projecting nearly $50 million in revenue and 332 percent organic growth over 2018. The company also delivered a $2.9 million net loss for the quarter, higher than last year’s net loss of $1.8 million for the same time period.

The revenue increased 302% over the year with first-time contributions from Coastal Harvest and HLO Ventures the California and Nevada operations, respectively. There was also a 32.8% increase in revenues at the Oregon operation known as ANM, Inc. ANM revenues were $2,879,769 in the quarter versus $2,168,976 during the same period in 2018. Coastal Harvest commenced its first year with revenues of $5,324,369, while HLO posted inaugural revenues of $514,365.

 


William SumnerApril 22, 2019
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5min9550

It’s time for your Daily Hit of cannabis financial news for April 22, 2019.

On The Site

CannTrust

Ontario-based CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) reported preliminary estimates for the quarter ending  March 31, 2019, with net revenue expected to be approximately $17 million, an increase of 116% versus the $7.8 million for the same time period in 2018. CannTrust also announced that it had begun an underwritten public offering of $200 million common shares, in which approximately 85% of the common shares are to be sold in the offering by the company and about 15% of the common shares to be sold in the offering by certain shareholders.

FDA Public Hearing On Hemp – Uncle Sam Wants You To Talk

The FDA is however finally allowing the public to weigh in, with the announcement of a Public Hearing to take place on May 31, 2019. What’s more, is that the Agency is allowing submission of public comment until July 2, 2019 and seems to earnestly want feedback from the hemp industry.

In Other News

PAX Labs

PAX Labs Inc., a consumer technology company that specializes in cannabis vaporizers, announced that the company had raised $420 million in equity financing from institutional investors, including Tiger Global Management and Tao Capital Partners. Pax Labs is best known as the vaporizer company from which the popular e-cigarette brand Juul originally spun off of. Speaking with Tech Crunch, a Pax Labs spokesperson said that the post-money valuation of the company is now $1.7 billion.

Cannabis One

Cannabis One Holdings Inc. (CSE: CBIS) announced that is executed three definitive agreements to acquire certain assets of the Nevada-based cannabis brand house Evergreen Organix. The agreements include the acquisition of cultivation and manufacturing licenses in the state of Nevada, intellectual property rights, product formulations, logistic operations, etc…The president of Evergreen Organix, Jerry Velarde, will also join Cannabis One as Chief Marketing Officer following closing. “Having already established a reputation centered around brand quality and consistency in the minds of cannabis consumers – we are now excited to jointly announce the contribution of our Evergreen Organix suite of brands, which includes the substantial cultivation and manufacturing infrastructure we have been building since 2015 in the Nevada marketplace, to Cannabis One’s growing ‘House of Brands’,” Velarde said in a statement.

Supreme Cannabis

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) announced today that it is launching a cannabis genetics company and has pledged to invest approximately $14 million to develop a research facility for the new company. Named Cambium Plant Sciences, the company will focus on researching and developing new cannabis strains for the adult-use and medical markets, as well as health and wellness applications. Dr. Alan Darlington, who previously served as Director of Special Projects for Supreme’s subsidiary 7ACRES, will lead Cambium as General Manager.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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