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Supreme Cannabis Continues to Put Points on the Board: Delivers Record Year -- CFN Media

SEATTLE, Sept. 26, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE - CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing The Supreme Cannabis Company Inc. (TSX-V: FIRE) (OTCQX: SPRWF) (FRA: 53S1).

The Canadian recreational cannabis industry is set to launch shortly on October 17, and investors are eagerly waiting to see how the market will unfold. There are more than a hundred licensed producers (“LPs”) in the market in various stages of build out - from securing cultivation or sales licenses to building production facilities - big promises have been made to investors.  

It should be no surprise that only a few LPs have actually generated any revenues to-date and even fewer have demonstrated a clear ability to scale effectively. Producers who are already growing at scale and putting up sales numbers will have a major head start when the recreational markets kick off. Others will find it challenging to catch up given the limited shelf recreational space, a tall task that could become insurmountable if the market starts to identify the early-movers as the “winners” in the space and access to capital dries up.  

The Supreme Cannabis Company Inc. is a licensed producer that has been working diligently behind the scenes to build a strong core business focused exclusively on premium brands and products at scale. Supreme has secured coast-to-coast distribution agreements in the Canadian recreational cannabis market and its products will be listed exclusively in the premium category. At the same time, the company has been securing wholesale agreements with other LPs to sell its premium product into medical channels, including a $2 million supply agreement with Tilray Inc.

The ability to provide product for two channels, at a time when many other LPs are struggling to show revenue, is a strong positive sign that Supreme is successfully executing on its business plan.

Financial performance suggest Supreme is punching in the heavyweight class

Supreme Cannabis recently announced its year-end and fourth quarter fiscal 2018 financial results (Supreme has a June 30 fiscal year end). Revenues for fiscal 2018 were $8.85M, which is one of the best first four quarters of revenue among all licensed producers including market leaders like Canopy Growth and Tilray Inc., who recorded revenues of $1.9M and $6.9M, respectively, in their first four quarters of sale.

Supreme Cannabis’ fourth quarter revenues were $3.55M, 71% greater than its third quarter of $2.07M. The fourth quarter represents an annualized revenue run rate of $14.2M which trails the industry leaders for now, but is already greater than other notable industry names such as Cronos Group and The Green Organic Dutchman.

Supreme Cannabis’ financial results demonstrate once again that the company is a player in the cannabis space and punches at the same level as many of the industry heavyweights. Yet, despite its financial strength, the company trades at a significant discount to others.

For example (note: market capitalization figures as at Sept 21, 2018):

  • Tilray’s revenue run rate for the most recently disclosed quarter was approximately C$51M, which is slightly over 2.5x Supreme Cannabis ($14.2M) – however, Tilray’s market capitalization ($14.8B) is more than 26x Supreme Cannabis ($0.56B)
  • Cronos Group revenue run rate of $13.6M is approximately 5% less than Supreme Cannabis, yet its market capitalization ($2.8B) is more than 5x Supreme Cannabis
  • The Green Organic Dutchman has yet to report any revenues, yet its market capitalization ($2.1B) is 3.7x Supreme Cannabis    

Looking Ahead

The Supreme Cannabis Company Inc. (TSX-V: FIRE) (OTCQX: SPRWF) (FRA: 53S1) presents investors with an opportunity to acquire a stake in a licensed producer who aims to have a distinct proprietary advantage in the market with its focus on premium brands and products, tangible revenue and a track record of rapid growth for a significantly reduced valuation compared to many of its peers.

For more information, visit the company’s website or download their investor presentation.

Please follow the link to read the full article: http://www.cannabisfn.com/supreme-cannabis-continues-put-points-board-delivers-record-year/

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

About CFN Media

CFN Media (CannabisFN) is the leading agency and financial media network dedicated to the global cannabis industry, helps companies operating in the space attract investors, capital, and publicity. Since 2013, private and public cannabis companies in the US and Canada have relied on CFN Media to grow and succeed.

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Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on http://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies.  We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.  

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

Contact:
Frank Lane
206-369-7050
Flane@cannabisfn.com

Wednesday, September 26, 2018 - 09:00