Supreme Cannabis Company Inc (TSE:FIRE) has been on fire so far this year. The stock has rallied from the December lows of C$1.15 to over $2. With the excitement surrounding the cannabis space and Supreme Cannabis Company being one of the best-run companies in the sector, it’s only a matter of time before the old highs of C$2.43 are taken out. As we have covered Supreme Cannabis quite a bit here at Insider Financial, let’s take a deep dive at the latest developments happening with the company.
First up, a little background info for those that are not familiar with FIRE. The Supreme Cannabis Company (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people, and uniquely innovative culture. The Company’s portfolio includes its wholly-owned subsidiary and multi-award-winning brand, 7ACRES.
7ACRES is a federally licensed producer of cannabis operating inside a 440,000-square-foot facility in Kincardine, Ontario. 7ACRES is dedicated to providing consumers with a premium-quality product that recognizes its customers are informed, discerning and value a brand and culture that aligns with their principles. 7ACRES brand success has been reflected in its “Brand of the Year” award at the 2018 Canadian Cannabis Awards, “Best Licensed Producer Branding” award at the 2018 AdCann Advertising Awards and in provincial supply agreements where 7ACRES’ product is consistently listed in the highest brand category available to recreational consumers.
The Company’s growing portfolio also includes an equity investment and long-term global distribution partnership with Lesotho-based Medigrow for the exporting of medical-grade cannabis oil.
FIRE Q2 Results
Supreme Cannabis Company finished 2018 on a strong note. Among the highlights were:
- Q2 2019 revenue for the Company was $7.72 million, a 359% increase from Q2 2018 ($1.68 million) and a 50% increase from Q1 2019 ($5.14 million).
- During the quarter, Supreme Cannabis strengthened its balance sheet by raising $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.
- Supreme Cannabis made its first shipments of 7ACRES branded High-End Cannabis™ to six of Canada’sprovincially regulated adult-use channels.
- The Company 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.
- The Company’s wholly-owned subsidiary and multi-award winning brand, 7ACRES, was named Brand of the Year at the 2018 Canadian Cannabis Awards.
FIRE CEO Navdeep Dhaliwal said:
“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. This quarter validated many aspects of our consumer-driven market thesis and demonstrates the strength of our intellectual property around scaled cultivation.”
FIRE is one of the most exciting stories in the cannabis space. With 7ACRES being names brand of the year and its partnership with Wiz Khalifa, FIRE is on the right track to delivering massive gains in 2019. We eagerly look forward to Q3 results, which will blow the doors off the Q2 numbers. 2019 is shaping up to be a big year for FIRE and its shareholders.
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Disclosure: We have no position in TSE:FIRE and have not been compensated for this article.
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