Supreme Cannabis Company Inc. (The) T.FIRE

Supreme's contradiction in less than 2 months

[RealistGhost21]

Is it not Nikhil Handa who said last Sept that Supreme was to keep a minimuim of $40 millions in inventory??? Why is it only $28 millions now???....  The market do not like the lack of transparency in this compagny.  Notice yesterday Beena kept the conference call pretty short and did not answer most of the pertinent questions.

[StayInvested]

No he did not state that last quarter, he stated inventory would not grow above those levels going forward. The inventory writedown this quarter was "aged stock being disposed of". Which means they were just throwing out old finished goods. Probably a good sign going forward as they more than likely have their run rate figured out. Cash burn in Q2 should be flat, as I expect earnings (.5

[RealistGhost21]

So that means they if they do not keep inventory over $40 millions they have not produced at all or that Confirm NEGATIVE MARGIN in dry flowers. Thats why the SP is where it is and shall be even lower.

[StayInvested]

No, it means they are trying to find the break even point on their inventory sell through. They are still growing cannabis, but they had to dispose of out of date (old) stock. Considering the package dates people are showing on their Supreme products. So I would assume the inventory number going forward, considering their current kg/month rate, would be somewhere around the 20-25mil mark in any

[theTransporter]

They should blow out all fo the old inventory.  STALE WEED SUPERSALE!!  $2 PER GRAM!! Rather then writing it off, just blow it out at least to cover costs.

[StayInvested]

The erosion of the brand(s) would be a concern with letting out suboptimal product. Hence why it is destroyed.