Investors, traders, and analysts and keeping their eyes out for a new wave of financial results to be published soon by cannabis companies. Many of these figures will be including the last three months of 2018, where legal cannabis was legalized across Canada, giving analysts a much-anticipated look at how these companies are operating in a post-legalization marijuana landscape. The Supreme Cannabis Company Inc (TSX: FIRE) announced today that they released their Q2 financial results for the three months ending in December 31st, 2018.
“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 Supreme Cannabis CEO Navdeep Dhaliwal. “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.”
The most notable highlight was that their sales increased by 359 percent, growing from $1.7 million to $7.8 million during the time period. The company strengthened its balance sheet through raising $100 million in proceeds from a convertible note due in 2021. Supreme Cannabis also made its first shipments of 7ACRES branded high-end cannabis product and is also poised to launch a new cannabis oil product line thanks to its partnership with Medipharm Labs.
“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,” Dhaliwal added. “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.”
Other announcements include that Supreme Cannabis received approval from Health Canada for around 30,000 square feet of additional cultivation space. The company also mentioned that they had graduated to the Toronto Stock Exchange (TSX) and no longer listing on the TSX Venture Exchange as another major achievement.
In response to the financial news, shares of Supreme Cannabis surged a little, rising from C$1.88 to $1.96 before settling at C$1.91. Most cannabis companies saw their stock values increase a little following Aphria’s financial results, which showed the company had grown significantly, albeit still operating at a significant financial loss.
Supreme Cannabis Company Profile
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.
The Supreme Cannabis Company has been a leading innovator in the sector including the design of growing facilities and development of operational excellence metrics. We are confident that together with our flagship brand, proprietary technology and products, truly unique culture, and industry-leading team, we will deliver our shareholders consistent long-term value creation. – Supreme Cannabis