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Supreme Cannabis Announces Q4 and 2019 Fiscal Year End Financial Results

  • Achieves first positive Adjusted EBITDA1 quarter of $3.2 million.
  • Q4 2019 net revenue was $19 million, a 90% increase from Q3 2019 ($10 million).
  • Fiscal 2019 total revenue was $41.8 million, a 370% increase from fiscal 2018 ($8.9 million).
  • Forecasts net revenue for fiscal 2020 to be between $150 million and $180 million, and positive Adjusted EBITDA1 for fiscal 2020

Supreme Cannabis Announces Q4 and 2019 Fiscal Year End Financial ResultsTORONTOSept. 17, 2019 /PRNewswire/ – The Supreme Cannabis Company, Inc. (“Supreme Cannabis” or the “Company”) (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), announced today the release of its financial and operating results for the fourth quarter and fiscal year ended June 30, 2019.

“We end fiscal 2019 as one of the few Canadian cannabis businesses building sustainable operations and valuable brands, reporting $3.2 million in Adjusted EBITDA1 for the fourth quarter,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Our positive Adjusted EBITDA and significant revenue growth in the fourth quarter reflects the rapid scale of our 7ACRES business and continued strong sales pricing for our brands from the provinces as we transition our premium supply to recreational sales channels.”

“With strong confidence in our core business, we began fiscal 2020 with two accretive acquisitions that expanded our addressable markets, provided valuable licensed operating assets and focused expertise,” Mr. Dhaliwal added. “As we integrate these businesses and realize further efficiencies from our scaled 7ACRES operations, we expect all of our brands to meaningfully contribute to the revenue we have forecasted for fiscal 2020. Amidst the noise of this new marketplace, Supreme Cannabis has taken a strategic and disciplined approach to develop a focused business with clear pillars: best-in-class infrastructure, top consumer brands, advanced intellectual property, and high-impact and capital-light exposure to developing international markets.”

Q4 and Fiscal Year End 2019 Select Financial and Operational Results.

Three Months Ended

Year Ended

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June 30, 2019

June 30, 2018

June 30, 2019

June 30, 2018

Net Revenue





Operating expenses





Net Loss after taxes





Basic and Diluted Loss per
common share





Adjusted EBITDA1











Supreme Cannabis’ core recreational flower brand, 7ACRES, accounted for the Company’s marked increase in revenue, growing 443% year-over-year from $3.5 million in Q4 2018 to $19 million in Q4 2019 and 90% quarter over quarter from $10 million in Q3 2019.

In the fourth quarter, 7ACRES continued to transition sales from its legacy wholesale contracts to recreational sales channels, increasing revenue from recreational markets by 51% between Q3 2019 and Q4 2019. As the brand continues to build equity amongst consumers, it will bring new proprietary strains to market. Subsequent to the fiscal year ended June 30, 2019, 7ACRES’ launched its proprietary strain, Jack Haze, the first sativa dominant strain to enter the market under the 7ACRES brand. With its novel traits, and differentiated profile, Jack Haze is securing premium pricing in the select provinces where available.

In the fourth quarter, under its partnership with Khalifa Kush Canada ULC (“KKE”), Supreme Cannabis expanded its product offerings beyond whole flower with the launch of premium KKE Oil. The Company’s KKE Sensi Star Oil was the first oil launched under the KKE brand. The Company will create other ultra premium products for recreational consumers under the KKE brand, including pre-rolls, derivative products and flower.

Anticipating the next phase of cannabis regulations and the legalization of derivatives products, the Company prepared to enter the cannabis extracts category through its  partnership with Pax Labs, Inc. (“PAX”). Pursuant to this partnership, 7ACRES, became one of only four licence holders to supply cannabis pods for the PAX Era vaporizer in Canada. The Company benefits from PAX’s strong brand recognition, reputation and market leading vaporizer technology, selling more than 500,000 Era devices and over one million devices in the flower vaporizer category.

Over the course of fiscal 2019, Supreme Cannabis explored opportunities to grow its brand portfolio, pursuing focused businesses that would benefit from the Company’s expertise in regulated operations, brand building, commercialization and regulatory affairs. In May 2019, the Company entered into a definitive arrangement agreement to acquire Blissco. Subsequent to the fiscal year ended June 30, 2019, Supreme Cannabis closed the acquisition of Blissco, accelerating the company’s growth into the premium wellness and global cannabidiol (“CBD”) industry with an authentic brand focused on whole plant wellness and committed to sustainability.

Subsequent to the fiscal year ended June 30, 2019, the Company rounded out its brand portfolio, announcing the acquisition and closing of global medical brand, Truverra Inc. (“Truverra”). With the acquisition of Truverra, Supreme Cannabis gains a skilled management team with decades of pharmaceutical industry experience and a growing CBD business in Europe. The company’s existing CBD offering includes balms, softgels and organic oils. Supreme Cannabis expects to realize meaningful contributions from its new brands and partnerships in the second half of fiscal 2020.


In the fourth quarter, Supreme Cannabis continued to scale its premium cultivation facility in Ontario. 7ACRES’ hybrid greenhouse was approved for an additional 50,000 square feet of production capacity, growing to a total of 23 licenced flowering rooms and 230,000 square feet of licenced cultivation space. Subsequent to the fiscal year ended June 30, 2019, in August 2019, 7ACRES obtained Health Canada Approval for its 24th flowering room and has already commenced planting in this additional licenced room.

As construction on the 7ACRES’ facility nears completion, Supreme Cannabis has chosen to build additional support infrastructure on the six-acre property adjacent to the 7ACRES’ facility, previously referred to as Lot 16. 7ACRES’ advanced cultivation practices have consistently produced premium quality flower well above the industry standard. With stable premium pricing for 7ACRES’ products and strong consumer validation, Supreme Cannabis intends to use the additional acreage to further enhance this successful operating asset. The Company expects the 7ACRES facility, including all administrative infrastructure, to be complete by the end of 2019 and construction on the adjacent property to begin upon completion.

Subsequent to the fiscal year ended June 30, 2019, the 7ACRES facility experienced an isolated mechanical failure affecting three grow rooms. Standard operating procedures were used when responding to the event and management made the proactive decision to discard all plants in the affected rooms. The rooms were temporarily de-commissioned while a permanent solution was implemented. All three grow rooms have now been recommissioned and will be replanted in September. 7ACRES’ small-batch approach to cultivation and modular design of only 10,000 square foot rooms contained the impact of this one-time mechanical deviation.

At the beginning of the fourth quarter, Supreme Cannabis announced the launch of Cambium Plant Sciences (“Cambium”). Located in Goderich, Ontario, Cambium will focus on developing the next generation of premium cannabis genetics for recreational, medical and wellness applications. Supreme Cannabis will invest approximately $14 million to develop a world leading facility for cannabis-focused research and innovation. Subsequent to quarter end, the Company commenced the retrofitting of Cambium’s facility and expects the initial phase to be complete in the third quarter of fiscal 2020

Subsequent to the fiscal year ended June 30, 2019, Supreme Cannabis’ acquisition of Blissco and Truverra expanded the company’s infrastructure with the addition of two focused operating assets. Since receiving its licence in August 2018, Blissco has been extracting oils from its 12,000 square foot facility in British Columbia. With Blissco’s focused expertise and state-of-the-art extraction lab, the Company gained a dedicated extraction business for the production of full spectrum CBD and THC derivative products.

Supreme Cannabis gained an additional operating asset from its acquisition of Truverra. Truverra’s subsidiary, Canadian Clinical Cannabinoids Inc. (“CCC”) operates a 5,000 square foot licenced facility in Ontario. In the near-term, the CCC facility will be equipped to process high-quality inputs for concentrates.

Strategic Investments.

With the European CBD industry’s projected growth of over 400% over the next five years2, it is expected to become one of the most lucrative spaces in the global cannabis market. To address this market, in the fourth quarter, the Company announced the launch of Supreme Heights, a distinct investment platform separate from Supreme Cannabis and based in London, UK.

Supreme Heights will target investments in high-growth potential, early-stage CBD brands across a variety of product forms in the health and wellness space with the goal of gaining an early leading position in the European CBD market. Target companies for investments by Supreme Heights are those with unique branded products, created by entrepreneurial teams who prioritize the end consumer, value sustainability and create high-quality products.  Supreme Cannabis will support Supreme Heights as it pursues investment opportunities by offering access to Supreme Cannabis’ regulatory, product commercialization, supply chain, marketing, legal and capital markets expertise.

Supreme Cannabis subsequently closed this previously announced investment in Supreme Heights on September 17, 2019, which includes an initial investment by Supreme Cannabis. Pursuant to the terms of the investment agreement, Supreme may nominate the majority of the board of Supreme Heights, which will be initially comprised of Patrick MortonNavdeep DhaliwalNick DavisBarinder S. Bhullar and Steve Chan.


Supreme Cannabis believes that the Company is well positioned to take significant steps forward in fiscal 2020, including:

  • Expected net revenue of between $150 million and $180 million.

  • Expected positive Adjusted EBITDA1 on aggregate over the course of the year.

  • 7ACRES’ to complete its transition from a wholesale business to premium consumer brand by third quarter fiscal 2020, with complete in-house packaging capabilities for all flower products under the 7ACRES’ brand.

  • Pursuing non-dilutive financing with tier-one banks and other lenders to provide financial flexibility for future growth initiatives.

  • Fully funded to execute on all planned initiatives.

In addition to the above outlook, the Company has determined not to exercise its option to pursue a consolidation of its issued and outstanding Common Shares.

The Company’s fiscal 2019 Annual Report is available in the Investors section of the Company’s website at and at

The Company defines Adjusted EBITDA as net income (loss) excluding fair value changes on growth of biological assets, realized fair value changes on inventory sold or impaired, amortization of property plant and equipment & intangible assets, share based payments, finance expense, loss on disposal of property plant and equipment, unrealized gains or losses on investments and income taxes.
2 Brightfield group, March 2019

Supreme Cannabis’ MD&A and consolidated financial statements for the fourth quarter and fiscal year ended June 30, 2019, along with all previous public filings of The Supreme Cannabis Company, Inc. may be found on SEDAR at

About Supreme Cannabis

The Supreme Cannabis Company, Inc. is a global diversified portfolio of distinct cannabis companies, products and brands. Since 2014, the Company has emerged as one of the world’s fastest-growing, premium plant driven-lifestyle companies by effectively deploying capital, with an emphasis on disciplined growth and high-quality products.

Supreme Cannabis’ portfolio includes 7ACRES, its wholly-owned subsidiary and multi-award-winning brand; Blissco Cannabis Corp., a wellness cannabis brand and a multi-licenced processor and distributor based in British ColumbiaTruverra Inc., a global medicinal cannabis brand and licenced cultivator; Cambium Plant Sciences, a plant genetics and cultivation IP company; Medigrow Lesotho, an cannabis oil producer located in southern AfricaSupreme Heights, an investment platform focused on CBD brands in the UK and Europe and a brand partnership and licensing deal with Khalifa Kush Canada ULC.

Supreme trades as FIRE on the Toronto Stock Exchange (TSX: FIRE), SPRWF on the OTC Exchange in the United States (OTCQX: SPRWF) and 53S1 on the Frankfurt Stock Exchange (FRA: 53S1). Follow us on InstagramTwitterFacebook and YouTube.

We simply grow better.

Forward-Looking Information

Certain statements made in this press release may constitute “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements“) which are based upon the Company’s current internal expectations, estimates, projects, assumptions and beliefs. Such statements can, in some cases, be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “believe”, “estimate”, “intend”, “potential”, “plan”, “could”, “would”, “outlook”, “forecast”, “anticipate”, “continue” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy. Forward-looking statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact. The forward-looking statements included in this press release are made only as of the date of this press release. Forward-looking statements in this press release include, but are not limited to, statements with respect to:

  • performance of the Company’s business and operations;
  • the competitive and business strategies of the Company;
  • intention and plans to grow the business, operations and potential activities of the Company;
  • licensing risks and expectations with respect to renewal and/or extension of the Company’s licences;
  • any commentary with respect to Canada’s cannabis regulatory regime;
  • expectations with respect to the cannabis market and market risks;
  • the expected growth in the number of customers and patients using the Company’s adult use and medical cannabis;
  • the Company’s ability to enter into and maintain strategic arrangements with distributors and retailers and the potential benefits of such arrangements;
  • the success of the entities the Company acquires and the Company’s collaborations;
  • the development of the Company’s brands, product diversification and future corporate development;
  • the expansion and production capacity of the Company’s sites and the timing related thereto;
  • future liquidity and financial capacity;
  • the advancement of the Company’s international projects and targeting other opportunities as the laws and regulations governing cannabis evolve internationally; and
  • the competitive conditions of the medical and adult use cannabis industry.

Certain of the forward-looking statements and other information contained herein concerning the medical and the adult use cannabis industry and the general expectations of Supreme Cannabis concerning the medical and the adult use cannabis industry and concerning Supreme Cannabis are based on estimates prepared by Supreme Cannabis using data from publicly available governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which Supreme Cannabis believes to be reasonable. While Supreme Cannabis is not aware of any misstatement regarding any industry or government data presented herein, the medical and the adult use cannabis industry involves risks and uncertainties that are subject to change based on various factors and the Company has not independently verified such third-party information.

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Company’s forward-looking statements are expressly qualified in their entirety by this cautionary statement. In particular, but without limiting the foregoing, statements in this press release regarding the Company’s objectives, plans and goals, including future operating results and economic performance may make reference to or involve forward-looking statements. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements, including general business and economic conditions, changes in laws and regulations, product demand, changes in prices of required commodities, competition and other risks as set out under “Risk Factors” in the Company’s Annual Information Form dated September 17, 2019 filed on SEDAR at The purpose of forward-looking statements are to provide the reader with a description of management’s expectations, and such forward-looking statements may not be appropriate for any other purpose. You should not place undue reliance on forward-looking statements contained in this document. To the extent any forward-looking information in this press release constitutes future-oriented financial information or financial outlook, within the meaning of applicable securities laws, such information is being provided to demonstrate the potential of the Company and readers are cautioned that this information may not be appropriate for any other purpose. Future-oriented financial information and financial outlook, as with forward-looking information generally, are based on current assumptions and subject to risks, uncertainties and other factors. Supreme Cannabis undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

SOURCE The Supreme Cannabis Company, Inc.

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Supreme Cannabis Announces Q4 and 2019 Fiscal Year End Financial Results

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