- SPRWF recorded revenues of approximately $19 million net of excise tax for Q4 2019, representing a jump of over 400 percent
- Supreme Cannabis forecasts net revenue for fiscal 2020 in the range of $150 million to $180 million
- The company recently closed on its acquisition of privately held Truverra for 14.7 million common shares
The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1) recently announced preliminary figures for the quarter ended June 30, 2019, and for its full fiscal year 2019 (http://cnw.fm/S1fOo). Preliminary figures show sales of $19 million net of excise tax for the three-month period. The company also anticipates reporting positive adjusted EBITDA on a consolidated basis for the 12-month period.
Supreme Cannabis’ figures are noteworthy when compared with others within the industry. Sales for the quarter are expected to have jumped more than 400 percent over fourth quarter 2018, when revenue was $3.55 million. Additionally, Supreme Cannabis expects net revenue in the range of $150 million to $180 million for fiscal year 2020, outpacing industry analysts’ expectations. Audited figures for Q4 2019 and the full year will be reported by Supreme Cannabis on September 17 after market close.
The company also expects to report positive adjusted EBITDA on aggregate for the year, positioning it as one of the few cannabis firms able to achieve this result. Based in Toronto, Canada, Supreme Cannabis is focusing on its strategy of pursuing opportunities and generating sustainable growth in what it sees as a global emerging cannabis market. It boasts industry-leading brands and international optionality.
“In a sector dominated by headlines, our measured approach to capital deployment and brand-building sets us apart,” Supreme Cannabis CEO Navdeep Dhaliwal stated in a news release. “We believe our preliminary results demonstrate the strength of our business during an inflection point within the industry, [signifying a] path toward profitability and continued disciplined growth.”
The continued success of Supreme Cannabis has been noted by industry spokespeople for some time. Bank of America Merrill Lynch initiated coverage of Supreme Cannabis in April with a ‘buy’ rating. Analyst Christopher Carey sent a note, calling the company an “underappreciated small cap” and praising its premium retail strategy and efficient delivery format (http://cnw.fm/Jx7HE).
“Our company has taken deliberate steps to grow in a focused, responsible and compliant manner, building a strong core business and an authentic brand and then expanding into new lines of business and international markets,” Dhaliwal noted. “Looking forward, we remain focused on building our portfolio of premium consumer experience driven brands.”
Another reason for optimism from Supreme Cannabis is its recent close on the acquisition of Toronto-based and privately held Truverra for 14.7 million shares of Supreme Cannabis’ common stock. Truverra will operate as a wholly owned subsidiary of Supreme Cannabis (http://cnw.fm/oGWV7).
The purchase intensifies the focus by Supreme Cannabis on expanding its cannabis presence in Europe. A subsidiary of Truverra is Netherlands-based Truverra Europe, which sells hemp-based CBD products in select European markets (http://cnw.fm/OeW96).
The Supreme Cannabis portfolio includes 7ACRES, an award-winning brand; Cambium Plant Sciences, a cultivation IP and plant genetics company; Medigrow Lesotho, a South African cannabis oil producer; Supreme Heights, an investment platform focused on CBD; and a brand partnership and licensing deal with Khalifa Kush Enterprises Canada.
For more information, visit the company’s website at www.Supreme.ca
NOTE TO INVESTORS: The latest news and updates relating to SPRWF are available in the company’s newsroom at http://cnw.fm/SPRWF
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