Debra BorchardtJuly 17, 2019
The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) plans to acquire all of the shares of privately-held Toronto-based Truverra Inc. in a deal valued at $20 million. Truverra is known for its wholly-owned subsidiaries, Canadian Clinical Cannabinoids Inc. (CCC) and Truverra (Europe) B.V.
The move is intended to boost Supreme’s extract offering for later this year when Canada’s market will open up to such products. It will also give the company a foot in the door of the European market. The acquisition is expected to close by the end of August 2019.
CCC currently operates a 5,000 square-foot Health Canada licensed facility in Scarborough, Ontario. Supreme Cannabis said that it plans to repurpose CCC’s facility to produce high-quality cannabis extracts, including concentrates and vaping liquids. Supreme is also interested in the Netherlands-based Truverra Europe because it sells a broad portfolio of hemp-based CBD products into select European markets.
“The recent introduction of Health Canada’s amended cannabis regulations creates a distinct opportunity for Supreme Cannabis to establish a leading position in the cannabis extracts markets. With the acquisition of Truverra, we secure a Toronto-based facility equipped to extract our high-quality inputs for concentrates and vaping liquids in the near-term,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Truverra’s operations also provide an additional entry point into Europe’s CBD wellness market, where Truverra Europe has successfully launched multiple CBD products in various jurisdictions.”
Supreme Cannabis’ portfolio includes 7ACRES, its wholly-owned subsidiary and Cambium Plant Sciences, a plant genetics and cultivation IP company; Medigrow Lesotho, a cannabis oil producer located in southern Africa; Supreme Heights, a investment platform focused on CBD brands in the UK and Europe and a brand partnership and licensing deal with Khalifa Kush Enterprises Canada
“The Supreme Cannabis Company has a strong track record for executional excellence, with their support and robust corporate services we look forward to strengthening our operations in Canada and globally,” said Jeff Adams, CEO of Truverra. “In the near term, we will continue to build Truverra’s CBD offering in Europe and position the brand to serve international medical markets.”
