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TORONTO, Feb. 12, 2019 /PRNewswire/ – The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), announced the release of its financial and operating results for the three and six months ended December 31, 2018.
(An abbreviated version of the statements is presented here. For the full statements and MD&A, visit SEDAR https://www.sedar.com/ -Ed)
Q2 2019 Financial and Operational Highlights
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).
Q2 2019 net comprehensive loss for the Company was $1.55 million, compared to a net loss of $2.03 million in Q2 2018 and a net loss of $5.39 million in Q1 2019.
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’s provincially 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.
Subsequent to Q2 2019
The Company’s 7ACRES facility received Health Canada approval for approximately 30,000 square feet of additional production space in January 2018.
Supreme Cannabis graduated to the Toronto Stock Exchange (“TSX”) from the TSX Venture Exchange on February 4, 2019.
7ACRES 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.
“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 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.”