Supreme Archives - Green Market Report

Debra BorchardtDebra BorchardtSeptember 18, 2019
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5min3450

The Supreme Cannabis Company, Inc. (FIRE.TO) (SPRWF) reported net revenue of $19 million for the fourth quarter ending June 30, 2019, a 90% increase sequentially. The net loss for the quarter was $421,000. Supreme Cannabis’ core recreational flower brand, 7ACRES, accounted for the company’s marked increase in revenue, growing 443% year-over-year from $3.5 million in Q4 2018 to $19 million in Q4 2019.

In the fourth quarter, 7ACRES continued to transition sales from its legacy wholesale contracts to recreational sales channels, increasing revenue from recreational markets by 51% between Q3 2019 and Q4 2019.

“We end fiscal 2019 as one of the few Canadian cannabis businesses building sustainable operations and valuable brands, reporting $3.2 million in Adjusted EBITDA for the fourth quarter,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Our positive Adjusted EBITDA and significant revenue growth in the fourth quarter reflects the rapid scale of our 7ACRES business and continued strong sales pricing for our brands from the provinces as we transition our premium supply to recreational sales channels.”

The company said in its statement, that with its partnership with Khalifa Kush Canada ULC,it expanded its product offerings beyond whole flower with the launch of premium KKE Oil. The company’s KKE Sensi Star Oil was the first oil launched under the KKE brand. It will create other ultra-premium products for recreational consumers under the KKE brand, including pre-rolls, derivative products, and flower.

Anticipating the next phase of cannabis regulations and the legalization of derivatives products, the company prepared to enter the cannabis extracts category through its partnership with Pax Labs, Inc. (“PAX”). Pursuant to this partnership, 7ACRES became one of only four license holders to supply cannabis pods for the Pax Era vaporizer in Canada. Supreme said it will benefit from PAX’s strong brand recognition, reputation, and market-leading vaporizer technology, selling more than 500,000 Era devices and over one million devices in the flower vaporizer category.

Looking Ahead

Supreme Cannabis said it is projecting net revenue of between $150 million and $180 million in fiscal 2020. The company also said it expected to be positive Adjusted EBITDA1 on aggregate over the course of the year. 7ACRES’ is to complete its transition from a wholesale business to premium consumer brand by third-quarter fiscal 2020, with complete in-house packaging capabilities for all flower products under the 7ACRES’ brand.

“With strong confidence in our core business, we began fiscal 2020 with two accretive acquisitions that expanded our addressable markets, provided valuable licensed operating assets and focused expertise,” Mr. Dhaliwal added. “As we integrate these businesses and realize further efficiencies from our scaled 7ACRES operations, we expect all of our brands to meaningfully contribute to the revenue we have forecasted for fiscal 2020. Amidst the noise of this new marketplace, Supreme Cannabis has taken a strategic and disciplined approach to develop a focused business with clear pillars: best-in-class infrastructure, top consumer brands, advanced intellectual property, and high-impact and capital-light exposure to developing international markets.”

 


StaffStaffAugust 13, 2019
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4min3800

The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) announced it expects revenue to increase 449% to $19 million for the fiscal fourth quarter ending June 30, 2019. The revenue is expected to increase by 97% sequentially over the third quarter of 2019. The company said it also anticipates reporting positive adjusted EBITDA on a consolidated basis for fourth quarter 2019. The company said it would release audited results on September 17.

“Our Company has taken deliberate steps to grow in a focused, responsible and compliant manner, building a strong core business and an authentic brand and then expanding into new lines of business and international markets,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “In a sector dominated by headlines, our measured approach to capital deployment and brand-building sets us apart. We believe our preliminary results demonstrate the strength of our business during an inflection point within the industry, path towards profitability and continued disciplined growth. Looking forward, we remain focused on building our portfolio of premium consumer experience-driven brands.”

The Supreme Cannabis Company’s FY 2019 Revenue Growth (CNW Group/The Supreme Cannabis Company, Inc.)

2020 Guidance

Supreme Cannabis said that it expects net revenue of between $150 million and $180 million for fiscal 2020 and expects positive Adjusted EBITDA on aggregate over the course of the year. The company will pursue non-dilutive financing with tier-one banks and other lenders to provide financial flexibility for future growth initiatives. The company said it is fully funded to execute on all planned initiatives.


StaffStaffFebruary 12, 2019
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4min4970

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.”

7Acres

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.

Stock Performance

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.


StaffStaffFebruary 4, 2019
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4min5510

It’s time for your Daily Hit of cannabis financial news for February 4, 2019.

On The Site

Namaste Tech

Namaste Technologies Inc.  (NXTTF)  has fired CEO Sean Dollinger and could be reviewing selling the company. The Canadian-based cannabis company said that following an investigation by a Special Committee of the Board of Directors, the Board terminated Dollinger for cause and removed him from his position as Director, effective immediately. The company has appointed Meni Morim as its interim CEO and also appointed Darren Gill as Chief Strategy Officer.

MedMen

MedMen Enterprises Inc. (MMNFF) is facing a new lawsuit from the company’s former Chief Financial Officer James Parker. Parker filed his case on January 29 in the Superior Court of California in the County of Los Angeles claiming wrongful termination for an undetermined amount of damages.

MedMen spokesman Daniel Yi said that the company was unable to respond to the filing because it had not been officially served, but would do so once that happened. “These are baseless claims and we’ll defend ourselves vigorously in court,” said Yi.

LB Equity

LB Equity has raised $50 million for a portfolio titled LB Equity Emerging Growth Fund, which will be concentrating its investments in cannabis companies that are involved in beauty, health, and wellness. The company’s first investment is with the platform Standard Dose, which is dedicated to selling hemp-based CBD products as well as educating consumers on these new products. The company did not announce how much of an investment it made into Standard Dose.

In Other News

Canopy Rivers

Canopy Rivers Inc. (TSXV:RIV) entered into an agreement with CIBC Capital Markets and Eight Capital to purchase, together with a syndicate of underwriters, 11,500,000 subordinated voting shares of the Company on a “bought deal” basis at a price of $4.80 per Subordinated Voting Share for gross proceeds of approximately $55.0 million.

Canopy Rivers completed a subsequent $9.4 million equity investment in its portfolio company Canapar Corp., the Canadian parent corporation of Canapar SrL, an Italy-based organic hemp production and processing platform. The investment aligns with the company’s global-focused growth strategy and is expected to provide the company with the opportunity to capitalize on the rapidly expanding European cannabidiol market.

GrowGeneration

GrowGeneration Corp. (OTCQX: GRWG) has purchased certain assets of BWGS, LLC. The transaction includes purchasing all the inventory of BWGS, as well as all their branded products.

Supreme Cannabis

Navdeep Dhaliwal, CEO and Director, The Supreme Cannabis Company, Inc. (FIRE), joined Michael Kousaie, Vice-President, Strategy and Product Innovation, Toronto Stock Exchange and TSX Venture Exchange, to open the market. The Supreme Cannabis Company, Inc. graduated and began trading on Toronto Stock Exchange on February 4, 2019.


StaffStaffJanuary 31, 2019
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2min5250

It’s time for your Daily Hit of cannabis financial news for January 31, 2019.

On The Site

 Organigram Holdings Inc. (OTCQX: OGRMF) has surpassed making one million cannabis pre-rolls since the legalization of adult use recreational cannabis in October 2018. The company said that it credits the automation of its processes along with surging consumer demand for the success of its large-scale production.

In Other News

NorCal Cannabis, one of the largest vertically integrated cannabis operators in California, announced that it has closed a $27.4 million round of Series A financing. The round formally closed on December 1, 2018, bringing the total amount raised by the company to $50 million since inception in 2015.  NorCal plans to deploy this capital to increase production and manufacturing at its leading-edge Santa Rosa campus, expand its statewide delivery platform and increase its retail and customer-facing footprint. With this raise, the Company is also paving the way for a potential 2019 public listing. Lead investors include Cannabis Growth Opportunity Corporation (CGOC), JM10 Partners and Cresco Capital.

The Supreme Cannabis Company, Inc.  (TSXV: FIRE) (OTCQX: SPRWF) said that its listed securities are expected to begin trading on the Toronto Stock Exchange on February 4, 2019. At that time, Supreme Cannabis’ common shares and 6.0% senior unsecured convertible debentures due 2021 will be voluntarily delisted from the TSX Venture Exchange and will commence trading on the TSX under the symbols “FIRE” and “FIRE.DB”, respectively.

 


William SumnerWilliam SumnerSeptember 27, 2018
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4min6240

It’s time for your Daily Hit for cannabis financial news for September 27, 2018:

On the Site

GW Pharmaceuticals

The Acting Administrator of the Drug Enforcement Administration has placed FDA-approved drugs that contain CBD derived from cannabis and no more than 0.1 percent tetrahydrocannabinols  (THC) in schedule V. GW Pharmaceutical’s (GWPH) Epidiolex had been a schedule I controlled substance, with this new directive Epidiolex (and any generic versions of the same formulation that might be approved by the FDA in the future) will be a schedule V controlled substance.

Khiron Life Sciences

The medical cannabis producer Khiron Life Sciences (KHRNF) is positioned to secure a significant share of the cannabis market in Latin America, according to a report released Canaccord Genuity, initiating coverage on the company with a speculative buy rating at a C$3.00 per share target rate. This comes right as the company announced that it signed a non-binding memorandum of understanding (MOU) with Fundacion Daya, Chile’s leading medical cannabis institution and the holder of Chile’s only medical cannabis license

In Other News

Supreme Cannabis Company Inc.

Supreme Cannabis Company Inc. (FIRE) announced that it has entered into an agreement with a group of underwriters, led by GMP Securities and BMO Capital Markets, on a bought deal basis. Under the agreement, the underwriters will purchase C$90 million of convertible debentures, at a price of $1,000 per debenture.  The convertible debentures will yield an interest rate of 6% per annum, payable bi-annually on June 30 and December 31; starting this coming December. The offering is expecting to close on or around October 19, 2018.

Aphria Inc.

Today Aphria Inc.  (APH) announced that it had closed the acquisition of LATAM Holdings Inc. from Scythian Biosciences (SCYB). The acquisition was funded by Aphria assuming $1 million of debt held by LATAM Holdings and through the issuance of 15.6 million shares. Included in the acquisition is a 90% ownership of Colcanna S.A.S., a medical cannabis company located in Colombia’s “Coffee Zone”; the pharmaceutical import and distribution company ABP, S.A.; a 49% ownership in Marigold Projects Jamaica Limited; and the right of first offer and refusal in an unnamed Brazilian entity.

MedMen Enterprises Inc.

MedMen Enterprises Inc. (MMEN) reports that it has closed its previously announced bought deal financing through a group of underwriters led by Eight Capital and Cormark Securities Inc. The offering sold 15,681,818 units of the company, at a price of C$5.50 per unit, for a total of C$86.25 million. This sum includes the full exercise of the underwriters’ over-allotment option. The proceeds of the offering will be used for general and working capital, developing the company’s cultivation and production facilities, and expanding its retail dispensary network.

 

 


Debra BorchardtDebra BorchardtJuly 5, 2018
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9min11560

Several cannabis companies announced signing agreements with the Alberta Gaming, Liquor & Cannabis Commission (AGLC) to supply recreational cannabis to Alberta’s private cannabis retailers and the AGLC’s online cannabis store, www.albertacannabis.org.

Alberta is Canada’s fourth most populated province and is mostly known as being the home to tourist destinations like Banff Park and Lake Louise. Its capital is Edmonton and its largest city is Calgary. The province is known as being a hub for the country’s crude oil industry.

“The AGLC is committed to providing the Alberta market with access to federally regulated cannabis in a safe and fiscally-responsible manner while helping to shrink the illicit market,” says Niaz Nejad, Chief Operating Officer, and Vice President, Gaming & Cannabis, AGLC. “We are confident that those we are working with will help us fulfill our responsibilities to Albertans.”

 

Aurora Cannabis Inc.

Edmonton-based Aurora Cannabis Inc. (ACBFF) said that it will initially allocate up to 25,000 kg of product for the first 6 months of sales to this market. “The AGLC and Alberta government have been steadfast in their commitment to developing the best possible framework for a well-functioning legal adult consumer use market that prevents cannabis from ending up in the hands of youth,” said Terry Booth, CEO. “The province’s common-sense approach and this agreement are the result of many months of discussions with the AGLC towards achieving these goals. Consequently, adult consumers in Alberta will have access to a broad selection of high-quality cannabis products from October 17, 2018, onward.”

He went on to say, “Aurora already is the pre-eminent provider of medical cannabis in Alberta, with a dominant market share, serving more Alberta patients than any other licensed producer. Aurora also employs more Albertans than all other licensed producers combined. We have a brand recognized for quality, which we intend to leverage to capture a significant share of the adult consumer market in Alberta and Canada, both organically and through our strategic retail partnerships. We look forward to working with the AGLC and becoming a key part of the province’s cannabis infrastructure to ensure Alberta’s successful entry into the burgeoning consumer cannabis market.”

Aphria Inc.

Aphria Inc. (APHQF) said that the AGLC placed an opening order of 870 kg to be supplied from across the full portfolio of Aphria’s adult-use brands and products, including dried flower, pre-rolls and cannabis oils. Once additional product categories, such as vapes and edibles, are authorized under the Cannabis Act, it is anticipated that they will also be made for sale throughout the province, further enhancing the company’s assortment of offerings in this market.

“We are thrilled to be working with such a strong partner that is equally committed to promoting responsible cannabis use,” said Jakob Ripshtein, Chief Commercial Officer at Aphria. “This important agreement enables Aphria’s adult-use brands to have a strong presence in Alberta’s dynamic retail landscape. Through our partnership with the AGLC, we look forward to providing access to our thoughtfully crafted portfolio of brands that were designed to meet the diverse needs of Alberta consumers.”

Organigram Holdings Inc.

Organigram Holdings Inc.  (OGRMF) also announced that it signed a supply agreement with the AGLC adding to the other three provinces that company has made deals with. Organigram recently unveiled its preliminary branding strategy for the adult recreational market in Canada featuring the brands The Edison Cannabis Company, ANKR Organics and Trailer Park Buds.

“We are pleased to finalize this agreement with AGLC,” says Greg Engel, Organigram’s Chief Executive Officer. “We applaud the province’s efforts to secure a high-quality, dependable inventory for their recreational cannabis market and are proud to have been selected as an AGLC partner.”

Emblem Corp.

Emblem Corp. (EMMBF) also signed an agreement to supply the province with high-quality cannabis products. Products will be available under Emblem’s new adult-use focused brand, which is expected to be announced shortly.

“Emblem is excited to have been selected to bring our adult-use products to Alberta’s recreational cannabis market upon legalization on October 17, 2018. We are looking forward to working together with the AGLC to build the foundation for a safe and responsible marketplace for consumers,” said Maria Guest, Chief Marketing Officer with Emblem. “With our soon to be announced adult-use cannabis brand, Emblem is ready to meet the needs of Albertans seeking a trusted source of cannabis products, offering a curated range of dried flower and cannabis oils.”

WeedMD Inc.

WeedMD (WDDMF) said it will supply the Alberta market with cannabis products starting the first day of legal sales. The agreement represents a key milestone in WeedMD’s strategic plan to develop a national distribution platform for the company’s medical and adult-use products, building upon the recent announcement of WeedMD’s supply agreement with Shoppers Drug Mart.

“We’re proud that the AGLC has selected WeedMD as a cannabis supplier to join its network as it looks to establish a cannabis framework for its adult-use markets,” said Keith Merker, Chief Financial Officer of WeedMD. “This represents a strategic partnership as we look to expand our product reach across the country to support Canada’s legal adult-use market. Alberta’s high standards align with the highly-regarded quality of our cultivation standards, product portfolio, and commercial practices as we look to meet the expected demand of this new market.”

The Supreme Cannabis Company, Inc.

The Supreme Cannabis Company, Inc. (SPRWF) said that its wholly-owned subsidiary, 7ACRES, had entered into a supply agreement with the AGLC to supply recreational cannabis upon legalization. Supreme said that the AGLC has communicated that they plan to evaluate product demand of the recreational market in order to inform their supply needs for the remainder of the year.

“We are very excited to serve as a trusted partner to the AGLC and Albertans.  Alberta offers a unique opportunity for quality-driven brands as it is one of the most sophisticated private retail markets in the country and its approach to retailing cannabis recognizes that ensuring quality and offering a selection of products are critical steps towards impacting the illicit market,” said John Fowler, CEO of Supreme Cannabis. “Supreme Cannabis anticipates broad provincial acceptance that 7ACRES’ lineup is a premium brand, and as such will be ranked as a top-tier product in their stores.”


Debra BorchardtDebra BorchardtMarch 20, 2018
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4min11180

Here are the cannabis news briefs for March 20, 2018:

 Arena Pharmaceuticals Inc.

Arena Pharmaceuticals (ARNA) reported positive results from a phase 2 trial of its treatment for ulcerative colitis. After the market closed on Monday the company released a statement saying that a higher dose of its experimental drug etrasimod succeeded in improving symptoms associated with ulcerative colitis, a chronic bowel disease, in a mid-stage study. The U.S.-based company said it now plans on moving the drug to late-stage trials. A lower dose did not have such strong results. The company is looking for a positive compound following the lower than expected sales of its weight-loss drug and is hoping this drug will make up for that disappointment.

The Supreme Cannabis Company, Inc.

Supreme Cannabis Company (FIRE.V) announced it has entered into a definitive agreement to complete a C$10,000,000 strategic equity investment in Medigrow. Upon completion of the investment, Supreme will own approximately 10% of Medigrow.

Namaste Technologies Inc.

Namaste (CSE:N) (NXTTF) announced that it has signed a Medical Cannabis Supply Agreement with Marigold Projects Jamaica Ltd. under its wholly owned subsidiary, Cannmart where Marigold will supply Cannmart with high-quality Jamaican produced medical cannabis, to be imported by Cannmart from Jamaica and offered in the Company’s online marketplace, subject to approval by Health Canada and the Cannabis Licencing Authority.

 Invictus MD Strategies Corp.

Invictus MD Strategies (TSXV: GENE) (OTC: IVITF) changed its share ticker from IMH to GENE on the Toronto Stock Exchange Venture Exchange. Invictus changed its TSX Venture symbol from IMH to GENE, effective March 20, 2018, to reflect the importance of the company’s new partnership with rock icon and branding genius Gene Simmons, anticipating that Simmons will play a vital role as the company marches into this historic year for Canada and cannabis.

The Hydropothecary Corporation

Hydropothecary (TSX-V: THCX) has reached an agreement with online commerce company Shopify to build its e-commerce platform for cannabis products. The bilingual website will serve Hydropothecary’s medical customers, provide information for discerning recreational consumers and support engagement with provincial and territorial cannabis retailers.

Friday Night Inc.

Friday Night Inc. (CSE: TGIF) (OTCQB: TGIFF) announced its inclusion in the CSE25 Index which is comprised of the 25 largest companies in the Canadian Securities Exchange Composite Index by market capitalization. The CSE25 Index is a subset of the CSE Composite Index.

Brayden Sutton, CEO of Friday Night, remarked, “We are very proud to be recognized as one of the 25 largest companies on the CSE by market capitalization. The inclusion of the CSE25 Index not only distinguishes our Company as a highly liquid issuer but gives validation to our business strategy and recognizes our impressive growth over the last 9 months of trading.”



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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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