With its high quality products, The Supreme Cannabis Company (TSX:FIRE) (OTC:SPRWF) Has 3 Disruptive Drivers That Cannabis Giants & Potential Investors Dream Of Far too many cannabis companies are struggling to turn a profit, and investors are wondering what happened to the promise of the green rush. We’ve all heard how disruptive the cannabis market was going to be, whether it’s “conservative, cautious” predictions of $200 billion or astounding forecasts up to $500 billion.
What most investors don’t realize is that profitability is still possible. Larger companies have spread their capital and efforts across too many product forms, brands, and countries to count. Without focus, positive EBITDA generation is a far off dream. However, there are a select few companies in the space that have taken a more prudent approach to growth.
One small cannabis company that is yet to be fully appreciated by the market is lighting a FIRE under the large unfocused players in the industry.
This little-known stock is setting itself up for profitable growth with its high-quality products, consumer-oriented brands, and focused operations.
The Supreme Cannabis Company (TSX:FIRE) (OTC:SPRWF) is Canada’s next cannabis superstar. It’s making a name for itself through several important factors, like:
First-mover advantage with premium products and strategic positioning to deliver new high-margin products under consumer-facing brands in domestic market Inroads into the international market with a capital-light approach Leadership team with experience attracting investment, building brands and distributing consumer products That list is impressive enough to encourage investors to closely watch the rise of Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) but it doesn’t even take into account the brand power of Supreme Cannabis’ leading recreational flower brands, 7ACRES, which won Brand of the Year 2 years in a row at the Canadian Cannabis Awards.
Nor does it account that the company just acquired its newest wellness brand, Blissco. Blissco shipped its first CBD oil products to the Canadian market and with a full line expected to hit the market this year, the brand is expected to meaningfully contribute to Supreme Cannabis’ revenue in the near-term.
This list also does not fully appreciate Supreme Cannabis’ partnerships with established brands like Khalifa Kush Enterprises or PAX Labs. Supreme Cannabis is the exclusive producer of Khalifa Kush Enterprises-branded products and 7ACRES is one of only five partners in Canada to produce vaporizer pods for the PAX Era vaporizer. That’s BIG brand exposure!
Not every cannabis company can achieve what it promises, but Supreme is one of the rare businesses that appears to want to keep delivering.
To ensure that it meets its strategic goals for 2020 and demonstrates it has the cash to achieve all future growth objectives, Supreme secured a whopping $90 million credit facility in an agreement with Bank of Montreal.
This makes Supreme Cannabis’ (TSX:FIRE) (OTC:SPRWF) fully funded to execute on all planned initiatives, and one of the few companies in the sector to achieve a sizable and favorable financial agreement with a tier-one lender.
With banks like BMO on Supreme’s side, investors can be assured that the business and operations are of the highest quality.
This under-the-radar stock definitely warrants a closer look…so let’s dive into the reasons why Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) is approaching the industry the right way.
This Under-the-Radar Canadian Cannabis Company is Posting Record Revenues & Analysts Believe It's Stock Price Could Soar at any time! Learn More … Get Their Latest Press Releases Delivered To Your Inbox Bonus: Sign Up Now and Get the Company Presentation
Press Releases Supreme Cannabis Completes First Shipment To Israel And Provides
Corporate Update Supreme Cannabis Announces Q2 2020 Financial Results And Updated Plan For Accelerated Revenue Growth Supreme Cannabis Focuses Organization And Reduces Cost Structure To Accelerate Profitable Growth Supreme Cannabis Second Quarter Earnings Release Scheduled For February 13, 2020
Supreme Cannabis Announces Leadership Transition As Company Accelerates Transformation Into Premium Cannabis CPG Company Disruptive Driver #1: First-Mover Advantage with Premium Products and Strategic Positioning to Deliver New High-Margin Products Under Consumer-Facing Brands in Domestic Market
The Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) leadership team was smart enough to learn from premium wine brands to not play the game of mass-producing average or common offerings. Especially in a market that was projected to reach oversupply from the beginning.
Instead, they committed to producing higher-quality products. These differentiated products yield better margins and maintain consumer demand.
The result? Supreme Cannabis (TSX: FIRE) (OTC: SPRWF) is now successfully positioned to enjoy near-term profitability while avoiding the major downside of potential oversupply gluts like those suffered by lower-quality producers.
This high-quality market segment is made up of discerning cannabis connoisseurs or “cannasseurs” who won’t settle for anything less than a premium product, such as Supreme Cannabis’ (TSX:FIRE) (OTC:SPRWF) 7ACRES brand that won the Canadian Cannabis Awards’ Brand of the Year for 2018 and 2019.
Having such a superior product on the shelves in all 10 Canadian provinces has earned Supreme Cannabis (TSX FIRE) (OTC: SPRWF) a preferential place in the hearts of cannasseurs. That all-important first-mover advantage in the hot Canadian market makes Supreme a national cannabis leader to watch.
Key to this superior product and early success is Supreme Cannabis’ 440,000 square foot hybrid cultivation facility. Supreme Cannabis is one of few licensed producers with their flagship operating asset 100% complete.
In less than a year, the company licensed and brought 20 10,000 square foot grow rooms online; increasing its cultivation space from 30,000 square feet to 230,000 square feet in the company’s fiscal 2019.
The Company has now completed all construction and received licensing approval from Health Canada on all spaces. This brings total flowering, vegetation and propagation space to 280,000 square feet.
But this premium facility belongs only to Supreme Cannabis’ (TSX:FIRE) (OTC:SPRWF) 7ACRES subsidiary. Supreme has also acquired the prestigious wellness brand and facility mentioned earlier: Blissco.
This Under-the-Radar Canadian Cannabis Company is Posting Record Revenues & Analysts Believe It's Stock Price Could Soar at any time! Learn More … Get Their Latest Press Releases Delivered To Your Inbox Bonus: Sign Up Now and Get the Company Presentation The $48-million CDN share-based Blissco acquisition was announced in May 2019.
Blissco operates its own 12,000 sq ft extraction facility and has already built a distinct premium brand targeting the environmentally-conscious, wellness consumer.
Now that Blissco has received its cannabis oil sales license from Health Canada and had its first run of CBD products in select provinces, the facility is expected to have the capacity to produce over 7 million bottles of CBD oil annually!
With the growing demand for CBD, Supreme expects the Blissco brand to meaningfully contribute to the company’s revenue in the near-term.
Through its 7ACRES subsidiary and now the Blissco acquisition, Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) has sured up its position as Canada’s only licensed producer focused on cultivating high-THC, high-quality cannabis, and premium CBD products at a commercial scale.
With the Blissco facility, it is also one of few producers who is capable of conducting all extraction in-house.
Most recently, Supreme Cannabis added to its impressive brand portfolio with the launch of Sugarleaf.
Sugarleaf expands and diversifies the company’s product offerings and targets consumers who demand a more refined, convenient consumption experience as they discover their own cannabis taste preferences and desires.
On top of that, Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) also acquired Truverra. Truverra’s subsidiary operates a 5,000 sq ft licensed facility in Ontario. Soon, this facility will be processing high-quality inputs for cannabis 2.0 products.
That’s a market that’s drastically underserved right now! Truverra also provides Supreme Cannabis with a distinct international medical brand, but we will address that advantage later on.
With a strong and diverse brand portfolio, Supreme Cannabis is well positioned to serve the varying consumer segments across Canada and become a leading cannabis company serving the recreational market.
Under these brands, Supreme is targeting a range of high-margin products that expand its portfolio beyond 7ACRES existing premium flower products and Blissco’s newly launched CBD oil. Most recently, The company launched pre-roll joints under its newest Sugarleaf brand.
Supreme Cannabis has strategically positioned itself to enter an additional soon-to-be competitive market alongside a leader in the space, Pax Labs. 7ACRES will be producing concentrated oil products for the PAX Era vaporizer out of its Blissco facility in Langley, BC.
This leading extraction facility has both the capacity and unique expertise to create a superior product.
7ACRES existing consumers, those cannasseurs mentioned earlier, tend to favor “dab-able” concentrates like rosin, wax and shatter.
Why? Because they’re looking for the strongest effects, and that means high-quality concentrate products that offer the highest THC percentages.
But to produce concentrates, mid-level cannabis strains just won’t work. Since concentrates are made from, well, for lack of a better word, concentrating cannabis extract, only high-quality flower can produce a desirable product.
And that’s where Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) comes in.
By focusing on premium high-THC strains, Supreme is ideally positioned to be a key player in this area of the rapidly growing, high-margin concentrate market, which recently became legal in Canada.
When you add up all the market inroads we’ve looked at so far, Supreme Cannabis’ (TSX:FIRE) (OTC:SPRWF) current portfolio of products and offerings addresses an amazing 86% of the potential cannabis market (based on the category mix in California).
That means that, while pretty much every sector of the cannabis market continues to grow exponentially, Supreme Cannabis’ (TSX:FIRE) (OTC:SPRWF) stock could be among the best positioned to reach greater heights.
Disruptive Driver #2: Inroads into the International Market with Capital-Light Approach Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) is actively extending its partnerships and market reach far beyond the Canadian market.
The company has taken a capital-light approach to international opportunities and looked at ways to strategically enter new market while minimizing risks.
As mentioned earlier, Supreme Cannabis’ acquisition of Truverra provided the company with an international medical cannabis and CBD brand.
Supreme Cannabis achieves capital light international exposure in the EU and UK through its Truverra branded CBD products.
Truverra’s e-commerce model, includes distribution on Amazon UK and truverra.com; Supreme Cannabis is gathering valuable market insights through Truverra’s consumer website.
Subsequent to quarter end, Supreme Cannabis launched a new Truverra website, improving the consumer journey and shopping experience.
Supreme Cannabis will continue to address international medical opportunities under this international brand.
Most recently, the company conducted a landmark transaction as one of the first Canadian producers to export medical cannabis from Canada to Israel. As their Interim CEO described it:
“This transaction represents a new international revenue opportunity for Supreme Cannabis and builds Truverra’s global medical brand in one of the most sophisticated medical cannabis markets in the world,” said Colin Moore, Interim President and CEO of Supreme Cannabis.
“With the support of BOL Pharma, we navigated Canada and Israel’s complex regulatory landscapes and ensured compliance with regulatory authorities in both countries, including, Health Canada, the Canadian Food Inspection Agency and Israel’s Ministry of Health and Ministry of Agriculture. We benefited from BOL Pharma’s deep team, international experience and position as a leading medical cannabis company in Israel. As we pursue capital-light international opportunities, we will continue to look to Jeff Adams, Truverra’s CEO and his exceptional team to build Truverra’s medical brand globally.”
As Supreme Cannabis Interim CEO indicated, the team gained with its Truverra acquisition is best in class.
Prior to joining Truverra, Jeff Adams spent 18 years in executive roles working for Canada’s largest generic drug producer, Apotex Inc. (“Apotex”).
At Apotex, Mr. Adams held positions in finance, corporate development, business development and international sales.
His most recent roles included VP of International Sales and VP of Corporate and Global Business Development, where he was responsible for the company’s global licensing activities. Supreme Cannabis will continue Adams will continue to lead Truverra’s operations.
And now, for the rest of the Supreme Cannabis team…
Disruptive Driver #3: Leadership Team with Experience Attracting Investment, Building Brands and Distributing Consumer Products It only takes a glance at the brand logos below to see that the Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) team has the world-class experience and know-how needed to sustainably grow a true market giant.
This is a truly exceptional team representing in-the-trench lessons learned in the tobacco, alcohol, CPG and wellness sectors; extensive experience in capital raising and mergers and acquisitions.
Here are the team’s key players:
Interim CEO & President, Colin Moore is likely the most experienced executive in the cannabis space, bringing decades of expertise from his time as President of Starbucks Canada.
This CPG expert spent 22 years with PepsiCo and prior to that, Yum! Brands Inc.
Chief Financial Officer, Nikhil Handa was formerly a key member of the mergers and acquisition group of RBC Capital Markets and held a variety of senior finance and operational roles at the company created by the merger of Burger King and Tim Hortons.
Chief Operating Officer, John Griese brings over 30 years of executive consumer packaged goods and global cannabis operations experience to Supreme Cannabis.
Prior to joining Supreme Cannabis, Mr. Griese gained unique operational experience in the cannabis industry as the COO for medical and recreational cannabis companies: Creso Pharma Limited, and Bloom Farms in California. Prior to this, he also held executive level positions in operations and supply chain with Nestle and Pepsico.
Leadership that knows how to attract investment, build brands, & distribute products is crucial to succeed in this rapidly developing industry. Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) is fortunate to have all three.
This Under-the-Radar Canadian Cannabis Company is Posting Record Revenues & Analysts Believe It's Stock Price Could Soar at any time! Learn More … Get Their Latest Press Releases Delivered To Your Inbox Bonus: Sign Up Now and Get the Company Presentation Please See Disclaimer
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