- SPRWF to focus on accelerated near-term revenue moving forward
- Announces the launch of new brands in the Canadian market
- SPRWF well-positioned to accelerate CPG-focused transition
The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) (FRA: 53S1), a company dedicated to growing the world’s best cannabis and becoming a leader in the global cannabis industry, released its financial and operating results for 2019, noting a focus on accelerated near-term revenue growth and 17% year-over-year net revenue growth (http://cnw.fm/4b7Xt). The company also shared an update on its strategy and outlook for the remainder of fiscal 2020.
In the announcement, Supreme Cannabis detailed how the Canadian business would benefit from its coast-to-coast sales partnership with humble+fume; the company also announced its goal of reaching near-term profitability, in part, enabled by its enhanced cost structure and accelerated revenue generating initiative. The company also highlighted that with major construction complete on its facilities, minimal capital expenditure is required moving forward. With cost optimization underway and significantly reduced capital expenditure ahead, the company is well positioned to execute moving forward. Most recently, Supreme Cannabis reported a strong liquidity position with total cash and restricted cash balance of $55 million with $35 million of undrawn capacity on the company’s credit facility.
Supreme Cannabis reiterated its strategy to transition from a business to business model to a consumer-facing premium-cannabis business. A focus on expanding its consumer-facing product portfolio is expected to drive near-term revenue with new high-quality for a variety of consumers hitting the market in the coming months. This expanded portfolio will be supported by an innovative sales model that achieves comprehensive distribution to cannabis retailers across Canada.
“As we realign our structure and expectations with the current state of the industry, I maintain my strong belief in Supreme Cannabis’ ability to drive near-term revenue growth, profitability and long-term value with new high-quality brands and products at every key price segment,” Supreme Cannabis interim president and CEO Colin Moore stated in a news release. “I’m proud of the team’s progress and difficult work rightsizing the company’s cost structure and focusing the business on near-term revenue drivers. As one of the few licensed producers with completed cultivation infrastructure and in-house, value-added processing capabilities, as well as proven premium brands in the recreational market, we are well positioned to accelerate our CPG-focused transition. Our strong liquidity position, including the credit facility arranged by a tier-one bank, further ensures we have the capital necessary to execute going forward.”
Looking forward, Supreme Cannabis plans new product launches designed to provide consumers with convenient, accessible consumption experiences. In addition, the company anticipates expanding its brand portfolio with recreational brands that address the ultra-premium and value segments. Finally, in Q3 2020, Supreme Cannabis expects to launch its first 2.0 products in the form of 7ACRES’s branded PAX ERA vaporizer pods.
The Supreme Cannabis Company is a global, diversified portfolio of distinct cannabis companies, products and brands. Since 2014, SPRWF has emerged as one of the world’s fastest-growing, premium, plant-driven lifestyle companies. Supreme Cannabis’ brands are backed by a focused suite of world-class operating assets that serve key functions in the value chain, including scaled cultivation, value-add processing, centralized manufacturing and product testing, and research and development.
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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