The Supreme Cannabis Company has posted revenue of C$7.72 million for its Q2 2019 – the last calendar quarter of 2018.
That represented a 359% increase from Q2 2018 ($1.68 million) and a 50% increase from Q1 2019 (C$5.14 million).
Q2 2019 net comprehensive loss was $1.55 million, compared to a net loss of $2.03 million in Q2 2018 and a net loss of $5.39 million in Q1 2019.
During the quarter, Supreme Cannabis strengthened its balance sheet by raising $100 million of gross proceeds through a bought deal offering of 6% unsecured convertible debentures due 2021 and led by GMP Securities L.P. and BMO Capital Markets.
Supreme also Cannabis made its first shipments of 7ACRES branded High-End Cannabis™ to six of Canada’s provincially regulated adult-use channels, while it contracted Medipharm Labs Co. to facilitate the launch of the Company’s cannabis oil products line.
Meanwhile, Supreme Cannabis and Khalifa Kush Enterprises announced an international partnership agreement to develop and launch premium cannabis products for the Canadian and international markets excluding the United States.
Supreme Cannabis graduated to the Toronto Stock Exchange (“TSX”) from the TSX Venture Exchange on February 4, 2019.
“We’re pleased with our second quarter results, which show meaningful revenue growth quarter-over-quarter and continues to reflect our strong operational execution,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Since Supreme received its license over two years ago, we have been one of the fastest scaling Licensed Producer’s in Canada, demonstrated by one of the strongest first years of revenue in the sector.”
Supreme’s subsidiary 7ACRES recently entered into a supply agreement with the New Brunswick Liquor Corporation and has been registered as a supplier in the province of Saskatchewan, expanding distribution into eight provinces.
7ACRES is a federally licensed producer of cannabis operating inside a 440,000-square-foot facility in Kincardine, Ontario.
Dhaliwal added: “During the second quarter we made our first shipments of 7ACRES-branded product to adult-use markets in six provinces. The consumer feedback has been overwhelmingly positive. Cannabis enthusiasts are vocal about their passion for high-quality cannabis. We believe 7ACRES has quickly established itself as Canada’s only premier cannabis producer at scale.
“With construction on the flowering room at 7ACRES scheduled to be completed by the end of March, we’re looking forward to increasing our production capacity to help meet consumer demand and drive further revenue growth throughout the year. This quarter validated many aspects of our consumer driven market thesis and demonstrates the strength of our intellectual property around scaled cultivation.”Cannabis Business Worldwide