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The Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTC: SPRWF) (FRA: 53S1) Teams with Premium US Brand Khalifa Kush to Build Canadian Product

  • The Supreme Cannabis Company’s five-year partnership with KKE Canada will include brand management and cultivation consulting
  • Deal marks the international expansion of popular Khalifa Kush premium brand
  • Agreement builds on Supreme Cannabis’ development of 342,000-square-foot facility
  • Supreme Cannabis’ 7ACRES subsidiary recently received ‘Brand of the Year’ honors from 2018 Canadian Cannabis Awards

Premium cannabis brand The Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTC: SPRWF) (FRA: 53S1) is building on the successes of an expansion and marketing effort that brought in a 229 percent year-over-year sales growth during the past year, thanks largely to its high-quality 7ACRES brand. The company announced this month that it will develop and launch an additional lineup of premium products in conjunction with Khalifa Kush Enterprises Canada ULC (“KKE Canada”).

The products are expected to include pre-rolls, extracts, capsules and cannabis oils to be sold by Supreme Cannabis under the KKE brand, based on KKE’s flagship “Khalifa Kush” strain established in the United States market, according to a December 6 news release (http://cnw.fm/Tn0LL).

“With the idea for ‘Kush and Orange Juice’ being created in Toronto, it’s the perfect start for the international expansion of Khalifa Kush. My team and I have spent the past year finding a partner that shares our vision, values and passion for cannabis,” KKE principal Wiz Khalifa stated in the release. “The team at Supreme Cannabis understands the importance of high quality cannabis and how to produce high quality cannabis at scale. I am very excited to be working with them.”

The new premium cannabis brand will be offered in Canada and some additional international markets, excluding the United States. Under the terms of the five-year partnership, KKE Canada will provide Supreme Cannabis with consulting services on brand management and cultivation, including cannabis strain selection and consumer education services.

During the course of the renewable five-year partnership, Supreme Cannabis will have exclusive right to commercialize cannabis products under the KKE brand internationally (excluding the United States) for three years, subject to market approval by KKE and a legal framework in which to operate.

KKE Canada will receive more than 5.7 million common shares of Supreme Cannabis and an initial cash payment of C$1 million, followed by annual royalty payments based on the sale of products developed under the partnership.

“Wiz is a globally-recognized cannabis taste maker and connoisseur,” Supreme Cannabis Founding President John Fowler stated. “KKE has had incredible success in U.S. adult-use markets, establishing a brand that is synonymous with ultra-premium quality, based on world-leading genetics… We’re excited to be working with KKE Canada to build another brand with the same commitment to quality (as 7ACRES) to continue the premiumization of our brand portfolio.”

7ACRES flower is focused on pleasing three primary senses: aroma, visual appeal and flavor, according to Fowler. It is cultivated in a 342,000-square-foot facility that is building toward an annual output of 50,000 kilograms of capacity by the new year. The company has also reached an agreement to acquire communications firm Bayfield Strategy, Inc., which is expected to help with brand marketing (http://cnw.fm/GUMk6). The 2018 Canadian Cannabis Awards presented by Lift & Co. (TSX.V: LIFT) recently honored 7ACRES as the ‘Brand of the Year’ in its fifth annual proceedings (http://cnw.fm/VxC9m).

For more information, visit the company’s website at www.Supreme.ca

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