Supreme Cannabis Announces Record Fiscal Year and Fourth Quarter 2018 Results
Recorded $8.85M in revenue for FY2018, among the highest reported revenue for any publicly traded Canadian cannabis producer in its first four quarters of sales
Posted a record sales quarter with 71% quarter over quarter growth, with $3.55M in sales in FY2018 Q4
TORONTO, Sept. 24, 2018 /PRNewswire/ - The Supreme Cannabis Company, Inc. ("Supreme Cannabis" or the "Company") (TSXV: FIRE) (OTCQX: SPRWF) (FRA: 53S1), announced its financial and operating results for the three and twelve months ended June 30, 2018.
"Over the past twelve months, Supreme Cannabis executed on its plan to deliver strong financial growth, build proprietary value around regulated cultivation at scale, establish coast to coast distribution in recreational markets and make inroads into the international medical cannabis market with a strategic investment," said Navdeep Dhaliwal, CEO of Supreme Cannabis1. "As a result of the successful execution of our strategy, we have generated significant revenue growth, both for the quarter and the year-end period. We look forward to building on this growth as we expand domestically and internationally," continued Mr. Dhaliwal.
"On October 17th, 7ACRES is set to become the first coast-to-coast premium recreational cannabis brand in Canada, and by the end of 2018 we will have completed construction on our state-of-the-art facility in Kincardine, Ontario. Once completed, the facility will have an estimated annual production output of 50,000 kg and will reinforce 7ACRES position as the leading producer of premium cannabis at scale," said John Fowler, President of Supreme Cannabis2. "We have been developing our 7ACRES business with a clear strategy to bring innovation and scale to High End Cannabis™ product. The Company is poised to continue this trend for the remainder of calendar 2018 and into 2019 as we build a dominant Canadian recreational cannabis brand," continued Mr. Fowler.
Fiscal Year End and Fourth Quarter 2018 Financial and Operating Highlights
For the twelve months ended June 30, 2018, Supreme Cannabis recorded $8.85M in revenue, among the highest reported revenue for any publicly traded Canadian cannabis producer in its first four quarters of sales (Supreme Cannabis received its sales license in July 2017).
Fourth quarter revenue for the Company was $3.55M, 71% greater than the previous quarter ($2.07M).
Supreme Cannabis recorded a net loss of $7.35M for fiscal 2018, 49% lower than the previous year ($14.42M).
Fourth quarter net income for the Company was $0.23M, compared to a net loss of $3.37M in the previous quarter.
The Company signed several wholesale supply agreements including with Aurora Cannabis Inc. (TSX :ACB ) and Namaste Technologies Inc. (TSXV: N), and secured strong wholesale pricing.
Supreme Cannabis completed a $40M bought deal private placement.
The Company completed a $10M strategic equity investment and global distribution partnership of medical cannabis oils with Lesotho-based Medigrow.
Subsequent to Fourth Quarter Fiscal 2018
The Company signed agreements to supply adult-use cannabis to consumers in six Canadian provinces and will be available coast-to-coast on October 17, 2018 (Supreme Cannabis is only one of seven LPs with supply agreements in five or more provinces).
The Company has signed several wholesale agreements to supply other LPs, including an agreement with Tilray Inc. (NASDAQ :TLRY ) which is estimated to be in excess of $2.0M.
The Company upgraded to the OTCQX market.
Supreme Cannabis added 50,000 square feet of licensed flowering room capacity and bringing estimated potential production to 13,333 kg; in less than twelve months, the Company has added 80,000 square feet of licensed flowering room capacity.
Supreme Cannabis' 2018 annual MD&A and audited consolidated financial statement for the year ended June 30, 2018, along with all previous public filings of The Supreme Cannabis Company, Inc. may be found on SEDAR at www.SEDAR.com
About Supreme Cannabis
The Supreme Cannabis Company (TSXV: 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 flagship brand 7ACRES.
7ACRES is a federally licensed producer of cannabis operating inside a 342,000-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 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.
The Supreme Cannabis Company has consistently set the standard for innovation 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.
For more information, please visit The Supreme Cannabis Company and 7ACRES websites.
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Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements may relate to anticipated events or results and include, but are not limited to, expectations regarding our regulatory environment and potential changes in law, the growth in our financial growth, production capacity and sales, our future position of high quality product, our expansion of our distribution network and other statements that are not historical facts. Particularly, information regarding our expectations of future results, targets, performance achievements, prospects or opportunities is forward-looking information. Often, but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. Forward-looking statements are current as of the date they are made and are based on applicable estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances. However, we do not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. There can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of the Company's Annual Information Form dated January 22, 2018 ("AIF"). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com. The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information.
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