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The Supreme Cannabis Company sees fiscal 1Q loss widen as it signs agreements to supply cannabis to Canadian provinces

The Toronto company has entered into a number of supply agreements, including one with Tilray, which are estimated to be worth in excess of $14 million

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The company has also signed pacts to supply cannabis in six Canadian provinces

The Supreme Cannabis Company Inc (TSXV:FIRE) (OTCQX:SPRWF) posted a loss in its fiscal first quarter, but saw its revenue jump as it signed agreements to supply cannabis to six Canadian provinces.

For the three months ended on September 30, the Toronto-based company’s net comprehensive loss hit C$5.39 million, compared with a net loss of C$2.18 million in the year-ago quarter and net income of C$0.23 million in the previous quarter.

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Its quarterly revenue looked better as it hit C$5.14 million, more than triple the C$1.56 million in sales reported in the year-ago quarter, and up from the C$3.55 million posted in the previous quarter.

On the company’s list of recent achievements is the signing of several supply agreements with other licensed producers, including supply agreements with the cannabis producer Tilray, which are estimated to be worth in excess of C$14 million.

"Supreme Cannabis' results in the first quarter mark a solid beginning to a historic year in a competitive, dynamic and rapidly evolving marketplace," said CEO Navdeep Dhaliwal in a statement.

“We've established valuable intellectual property and laid a strong foundation for 2019 by amassing coast-to-coast distribution for what we believe is the only premium High-End Cannabis™ grown at scale in the country,” he added. 

The company also signed pacts to supply cannabis in six Canadian provinces and upgraded to the OTCQX market in the US.

In another advance, The Supreme Cannabis Company added 50,000 square feet of licensed flowering room capacity, which brings its estimated potential production to 13,333 kg.

In the wake of the quarter, Supreme Cannabis strengthened its balance sheet by raising C$100 million of gross proceeds through a convertible debt deal in October of 2018.

Supreme Cannabis has also recently made its first shipments of 7Acres-branded High-End cannabis to six of Canada’s provincially regulated adult-use channels.

The company’s shares closed down 2.25% on Tuesday at C$1.31.

Contact Ellen Kelleher at [email protected]

Quick facts: The Supreme Cannabis Company Inc

Price: 0.5929 USD

OTCMKTS:SPRWF
Market: OTCMKTS
Market Cap: $197.63 m
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