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Supreme Cannabis' Solid Foundation
03/29/2019 12:01 am EST
On Feb. 12, Supreme Cannabis reported record growth in the second quarter fiscal year 2019.
Q2 2019 revenue was $7.72 million, a 359% increase from Q2 2018 ($1.68 million) and a 50% increase from Q1 2019 ($5.14 million). During the quarter, Supreme Cannabis strengthened its balance sheet by raising $100 million of gross proceeds through a deal offering of 6% unsecured convertible debentures led by GMP Securities L.P. and BMO Capital Markets.
Supreme Cannabis also noted that it made its first shipments of 7ACRES branded high-end Cannabis to six of Canada's provincially regulated adult-use channels.
In February Supreme Cannabis also highlighted two major advancements that should hasten growth for the emerging sector leader. On Feb. 7 wholly owned subsidiary, 7ACRES entered into a supply agreement with the New Brunswick Liquor Corporation to supply recreational cannabis to its retail stores and has been registered as a supplier in the province of Saskatchewan. A day later Supreme Cannabis received approval from The Depository Trust Company (DTC) of New York to make the Company’s shares DTC eligible.
This electronic method of clearing securities speeds up the receipt of stock and cash, and thus accelerates the settlement process for certain investors. The expanded distribution and DTC eligibility will accelerate growth.
“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, said Navdeep Dhaliwal, CEO of Supreme Cannabis in a release. “This quarter validated many aspects of our consumer driven market thesis and demonstrates the strength of our intellectual property around scaled cultivation."
Highlights of Q2 2019 Financial and Operational report
- 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.
- It cut roughly 70% of the losses from its Q1 2019 figures and contracted Medipharm Labs Co. to facilitate the launch of the Company's cannabis oil products line.
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 Feb. 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.
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